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Climate Politics

Declining Climate Funding Spurs Index of Most Vulnerable Nations

The index identifies countries that are at high risk of hazards, like floods and heat waves, but have little access to finance.

Residents walk along a flooded street in the Praia Nova neighborhood of Beira, Mozambique, on March 20, 2024. 

Photographer: Douglas Condzo/Bloomberg

Takeaways by Bloomberg AI

A new climate risk index seeks to help get the dwindling pool of aid for climate adaptation to the countries that need it most.

The Climate Finance Vulnerability Index combines factors measuring a country’s exposure to climate hazards with indicators of its financial resilience, including access to loans and level of debt. It’s designed to help funders direct grants and low-interest loans to countries that are both most exposed to climate perils and less able to access funds through other means.