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Home Climate finance

Malawi warns climate loans could deepen debt as $7bn plan faces funding gap

by Online Editor
October 27, 2026
in Climate finance
Reading Time: 2 mins read
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Malawi warns climate loans could deepen debt as $7bn plan faces funding gap
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By Faridat Salifu

Malawi has warned that its efforts to tackle climate change could face implementation challenges unless international partners provide sufficient grant-based financing to support its $7.06 billion climate action plan for 2025 to 2035.

Sustainability and environmental rights advocate Matthews Malata, popularly known as Mr Green, raised the concern during a high-level breakfast meeting in Antalya, where Malawi presented its Third Nationally Determined Contribution (NDC 3.0) to international development partners at COP31.

Malawi estimates that implementing the plan will cost K12.4 trillion ($7.06 billion), with K7.4 trillion ($4.28 billion) expected from international support.

Malata, attending COP31 as a Malawi 2063 Environmental Sustainability Champion, said countries already facing financial constraints should not have to accumulate additional debt to respond to climate change.

He argued that climate finance must be predictable, accessible and delivered quickly enough to support communities facing drought, flooding and other climate-related threats.

“A plan on paper is only as strong as the resources available to deliver it,” Malata said, questioning what would make the latest commitments succeed where previous climate plans had struggled to meet their targets.

He attributed the financing challenge partly to geopolitical tensions, pressure on official development assistance and tighter budgets among traditional development partners.

Malata also identified lengthy approval processes as a barrier, noting that delayed funding could prevent vulnerable communities from receiving support when they need it most.

The consequences are particularly significant for Malawi’s agricultural sector, where smallholder farmers require climate-resilient farming practices, drought-resistant inputs and sustainable irrigation systems.

Flood-prone communities also need effective early warning systems and resilient infrastructure, while investments in renewable energy, water security and ecosystem restoration remain important to the country’s climate priorities.

Malata called for simplified access to international climate funds, greater reliance on grants rather than debt-creating instruments and stronger accountability to ensure promised resources reach implementing institutions and vulnerable communities.

“Malawi needs climate finance that is accessible, predictable, timely, and largely grant-based — not another debt burden, nor money that arrives after communities have already paid the ultimate price,” he said.

He said the presentation of NDC 3.0 should prompt development partners to match their financial commitments with the country’s identified adaptation and mitigation needs.

For Malawi, the challenge extends beyond securing pledges to ensuring that funding is adequate, arrives on time and supports climate action without worsening existing financial pressures.

The country’s ability to implement its climate commitments will therefore depend partly on whether international partners can bridge the funding gap through financing arrangements that do not further strain its public finances.

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