US Court Battle Over Climate Grants Heats up, European Cities Make Progress on Adaptation, and More

US Judges Spar Over Frozen Climate Funds

US$20bn of federal money for green banks and climate resilience projects remain in limbo after a volley of court orders last week.

On Wednesday, US District Judge Tanya Chutkan ordered Trump officials to unfreeze around US$625mn of Greenhouse Gas Reduction Fund (GGRF) grants awarded to nonprofit groups by the Biden administration. But on Thursday a US appeals court stayed the order — preventing access to the promised funds, which are being held by Citibank.

It’s the latest twist in an ongoing battle between the Environmental Protection Agency (EPA) and the nonprofits Climate United and Coalition for Green Capital (CGC) over the green grants. EPA Administrator Lee Zeldin moved to terminate all public money for the GGRF on March 11, claiming “programmatic fraud, waste, and abuse, and misalignment with agency’s priorities.” The GGRF was created under the 2022 Inflation Reduction Act to accelerate the climate transition and build resilience in underserved communities.

Climate United, one of the nonprofit groups challenging the Environmental Protection Agency (EPA) over the funding freeze, said any efforts to undermine Judge Chutkan’s ruling would “jeopardize local projects already under construction and cost thousands of good-paying jobs.” Speaking to the New York Times, a spokesperson said the group will fight the appeal court’s stay. The earliest they could seek relief is this Friday. Climate United was awarded almost US$7bn by the GGRF to finance community infrastructure projects, retrofit homes, and develop clean water infrastructure, among other things. 

Separately, last Wednesday Judge Mary McElroy of the US District Court for the District of Rhode Island ordered five federal agencies to release climate and infrastructure grants awarded by President Biden’s Inflation Reduction Act and Bipartisan Infrastructure Law. Nonprofit groups said the Trump administration had unlawfully barred access to the funds properly appropriated by Congress.

“Agencies do not have unlimited authority to further a President’s agenda, nor do they have unfettered power to hamstring in perpetuity two statutes passed by Congress during the previous administration,” McElroy said.

In Brief

The Board of the UN-backed Adaptation Fund approved US$137mn for 16 new adaptation projects at a Thursday meeting — a new record for the organization. First-time funding recipients include Somalia, Saint Kitts and Nevis, and the Philippines. Other countries received expanded support through the Fund’s Locally Led Adaptation (LLA) program — including Senegal and Armenia. In addition, the Board doubled the Fund’s country spending caps from US$20mn to US$40mn, which will allow more adaptation finance to flow to those countries most in need. A new US$30mn regional aggregator was approved too, which will hasten the delivery of LLA grants to local actors. The Board also accredited new implementing entities and raised its 2025 fundraising target to US$300mn. (Adaptation Fund)

The European Commission is investing €86mn (US$98mn) in new projects to boost water resilience, reduce emissions, and strengthen climate adaptation across Denmark, Estonia, Poland, Slovenia, and Iceland. These Strategic Integrated Projects will restore ecosystems, upgrade local climate plans, and reduce pollution, and are expected to tempt millions more in adaptation funding from other EU and private sources. The awards are part of the LIFE Programme, an EU funding initiative dedicated to environmental, climate and energy objectives which has co-financed more than 6,000 projects since 1992. (European Commission)

At the Sixth Africa Climate Talks in Kampala, African leaders called for a fundamental overhaul of the global climate finance system ahead of COP30, framing it as a matter of justice, not charity. Delegates emphasized the importance of fair access to adaptation finance, and spotlighted initiatives like the Africa Adaptation Acceleration Program, which hopes to mobilize $25bn over five years to scale climate adaptation action across the continent. (African Development Bank Group)

World Bank President Ajay Banga said half of the Bank’s climate finance target for 2024 will go toward adaptation and resilience, including projects like heat-resistant crops, climate-resilient schools, and flood-resistant roads. However, he warned that if the US was to withdraw pledged funds, and European countries cut back on their own promises, then the latest US$100bn International Development Association (IDA) funding round could reduce to US$80-85bn. The IDA is charged with delivering climate funds to the world’s poorest countries. (Reuters)

Investment manager Schroders and Cornell University’s Global Labor Institute have released an investor toolkit on “just resilience,” urging companies to integrate human rights into their climate adaptation strategies. The authors argue that companies must not only protect assets and supply chains from climate shocks but also safeguard workers from poor conditions — especially in vulnerable sectors like apparel, agriculture, and manufacturing. The toolkit proposes engagement questions for investors and highlights good practices from brands like Nike and Inditex, emphasizing the need for adaptation that is both climate-smart and socially equitable. (Schroders / Cornell)

The Securities and Exchange Commission (SEC) has approved the Green Impact Exchange (GIX), the first US stock market focused on public companies that are managing climate risks and delivering sustainable solutions. The trading venue is powered by MEMX, a member-owned exchange operator backed by the largest financial institutions on Wall Street. The exchange aims to boost capital formation for climate and sustainability-oriented companies and improve sustainability disclosures. (GIX)

Event Announcement

Half of European Cities Now Have Adaptation Plans

European cities are becoming more resilient to climate change, but are in danger of being overwhelmed by worsening floods, storms, heatwaves, and wildfires, according to a new study from the World Meteorological Association and EU agencies. 

The European State of the Climate report says that 51% of European cities have dedicated adaptation plans in place, up from 26% in 2018. In 2022 alone, 19,000 adaptation actions were reported, addressing risks to water, buildings, land, agriculture, and health, among other things.

However, climate-induced challenges are growing more formidable, which may require a rethink on adaptation implementation. Europe experienced the most widespread flooding since 2013 last year, with property-destroying inundations affecting some 413,000 people. The continent also sweltered through its second-highest number of heat stress days and tropical nights on record, with southeastern Europe suffering its longest ever heatwave.

Reported Types Of Adaptation Actions

The outlook is bleak, too. Rain and river flood risks are projected to reach ‘critical’ severity by mid-century, according to the most recent European Climate Risk Assessment. Coastal flooding risk is estimated to become ‘catastrophic’ by 2100, while risk of damage to buildings and infrastructure is expected to hit the ‘critical’ level over the same time horizon, assuming a high warming scenario.

To improve adaptation, the report says “tangible targets” are needed to gauge progress and ensure accountability. The most cited blockers of adaptation action are insufficient funding and the lack of sustained political commitment, while the most common enabler of action is citizen engagement.  “Ensuring sufficient long‑term financial resources is key to success,” the report reads.

Combining adaptation actions of different types may also be necessary to counter “the magnitude of current and predicted future climate impacts”, it adds. For example, nature-based solutions that reintegrate nature into urban areas can complement artificial physical interventions and technological measures, like early-warning systems and advanced risk mapping.

Commenting on the report, Dr Ben Clarke, research associate in extreme weather and climate change at Imperial College London, said it is “painfully clear that the cost of that the cost of acting on climate change is far lower than the cost of inaction. Cutting emissions and investing in climate adaptation will save lives and protect economies.”

In Brief

Four of the six US Regional Climate Centers shut down last week after funding from the National Oceanic and Atmospheric Administration (NOAA) lapsed. The closures will bring to an end critical services like drought monitoring and weather data access across 21 states. Experts warn this will impair agricultural planning, emergency preparedness, and climate resilience efforts at a time of rising climate risk. (NPR)

The US Department of Agriculture has canceled the US$3bn Partnerships for Climate-Smart Commodities initiative, citing high administrative costs and insufficient farmer benefits. It will be replaced by the Advancing Markets for Producers program, which shifts focus from climate resilience to farmer payments, requiring that at least 65% of federal funds go directly to producers. The original initiative financed climate-smart production practices and conservation efforts on working lands, supporting climate adaptation and greater soil carbon sequestration in the process. Critics warn the USDA’s overhaul hobbles US climate goals and will impede data collection, threatening transparency and support for farmers grappling with worsening climate impacts. (USDA) 

The Sierra Club and partner organizations filed a federal lawsuit last Monday against the Trump administration for removing key public climate and environmental justice data tools from agency websites. The suit argues that taking down the platforms — which track the burdens related to climate change, energy, health, housing, legacy pollution, transportation, water and wastewater, and workforce development — threatens lives and obstructs efforts to hold polluters accountable. (The Sierra Club)

A draft White House budget would slash NASA's science funding by 47%, threatening to end dozens of Earth observation missions critical for climate monitoring and research. The cuts could shutter the Goddard Space Flight Center in Maryland and halt nearly all future science projects, undermining US leadership in space science and wasting billions already invested. The Planetary Society and lawmakers are pushing back, warning of dire consequences for scientific discovery and climate data collection. (Axios)

NATO officials are softening language around climate, gender, and diversity in internal documents to avoid political backlash from the Trump White House. Terms like “green technologies” are being recast as “innovative technologies,” and “climate” as “operational environment.” The shift underscores growing anxiety within the alliance over maintaining cohesion as US support becomes increasingly conditional. (Politico)

Environmental nonprofits are bracing for executive orders from Donald Trump that may seek to revoke their tax-exempt status. Groups fear this could chill climate and environmental justice work, particularly in vulnerable communities, though legal experts argue such moves would likely fail in court. (Inside Climate News)

The Global Center on Adaptation (GCA) convened 50 nations at its inaugural Ambassadors’ Forum in Rotterdam last Wednesday to rally global support for scaling climate resilience, which it called a “growth engine” for the 21st century. The gathering is part of the GCA’s mission to advance climate adaptation solutions worldwide, with emphasis on protecting infrastructure, enhancing food systems, and boosting economic growth. (Global Center on Adaptation)

Cooling Tech Startup Targeted by EPA

Make Sunsets, a two-person startup that uses balloons to launch cooling, reflective clouds into the stratosphere, has been issued a demand for information from the US Environmental Protection Agency (EPA).

The company’s instruments release sulfur dioxide (SO2) in the stratosphere, about 66,000ft above the earth. It claims that one gram of sulfur delivered at this altitude offsets the warming effect of 1 ton of CO2 for an entire year. Companies and individuals can buy “cooling credits” from Make Sunsets to support their balloon missions.

The EPA considers SO2 a “criteria pollutant” that can harm human health and the environment when present in large volumes near the Earth’s surface. However, the amount released by each Make Sunsets balloon is tiny and is highly unlikely to have adverse health effects if it stays in the stratosphere.

Administrator Lee Zeldin said that the company’s actions “shows how climate extremism has overtaken common sense.”

“Based on Make Sunsets’ responses to our information request, we will look into all our authorities to ensure that we continue maintaining clean air for all Americans,” Zeldin added.

In Brief

Columbia Climate School’s National Center for Disaster Preparedness has released a Natural Hazards Climate Change Projections tool for the US that offers county-level forecasts for wildfires, hurricanes, tornadoes, and sea-level rise under multiple climate scenarios. The interactive dashboard, built to support emergency planners, policymakers, and the public, allows users to visualize mid- and end-century hazard shifts and compare them to historical baselines. These insights can help emergency planners and government officials to identify where adaptation and risk response efforts should be prioritized. (Columbia Climate School)

Adaptation tech companies were among the 12 winners of this year’s BloombergNEF Pioneers awards. They include AiDash, which uses AI and satellite imagery to help utilities prevent fire-triggering outages; Beewise, whose robotic hives dramatically reduce bee colony losses; and InnerPlant, which genetically engineers crops to emit signals visible to monitoring satellites when they’re stressed by insects and other threats. (BloombergNEF)

The inaugural Verizon Disaster Resilience Prize is seeking tech-enabled solutions that help US communities prepare for, respond to, and recover from weather-related disasters. Eligible pilot-to-scale solutions must leverage technologies like AI, IoT, 5G, or smart infrastructure to improve early warnings, emergency coordination, infrastructure resilience, or long-term recovery. Solutions must already be operating or planning deployment in the contiguous US and have at least four full-time staff. The prize is co-led by MIT Solve, a tech initiative of the university. (Verizon)

RESEARCH

The economics of climate adaptation: From academic insights to effective policy (Centre for Economic Policy Research)

How to avoid the risk of maladaptation? From a conceptual understanding to a systematic approach for analyzing potential adverse effects in adaptation actions (Mitigation and Adaptation Strategies for Global Change)

Increasing burden of poor mental health attributable to high temperature in Australia (Nature Climate Change)

Earth Observation in support of EU policies for urban climate adaptation (European Commission)

Before disaster strikes: Climate resiliency through proactive decarbonisation (Journal of Urban Regeneration and Renewal)

Rethinking climate adaptation for global resilience (Allianz)

Thanks for reading!

Louie Woodall
Editor