BONN, Germany: Despite widespread belt-tightening across the United Nations, nearly 200 countries agreed this week to increase the budget of the U.N. climate body by 10 percent—a move hailed as a rare show of unity and continued commitment to climate cooperation.

The agreement was reached at climate talks in Bonn, Germany, where nations including Japan, Saudi Arabia, Fiji, and others approved a core budget of €81.5 million for the United Nations Framework Convention on Climate Change (UNFCCC) for 2026–2027. The figure represents a 10 percent increase from the current two-year cycle (2024–2025).

The core budget is funded through government contributions. While the United States remains the largest donor (22 percent), China's share will rise to 20 percent, up from 15 percent, reflecting its economic growth. The U.S. delegation did not attend the Bonn talks, and much of its past funding has been replaced by Bloomberg Philanthropies, following a halt in support under President Donald Trump.

In a statement, UN climate chief Simon Stiell called the budget increase "a clear signal that governments continue to see U.N.-convened climate cooperation as essential, even in difficult times."

The increase comes at a moment when other U.N. agencies are facing steep cuts. The U.N. Secretariat is preparing to slash its US$3.7 billion budget by 20 percent, and the U.N. Conference on Trade and Development—with a staff of 400—faces reductions, in contrast to the UNFCCC's more modest staff of 181 funded through its core budget.

The UNFCCC plays a key role in organising annual climate negotiations and overseeing the implementation of global pacts like the 2015 Paris Agreement, which seeks to limit global warming.

Still, the climate body has grappled with recent financial instability. Delayed payments from major donors, including China and the U.S., forced the cancellation of several events and triggered internal cost-saving measures.

The approved increase signals an effort to stabilise operations and maintain momentum as climate action becomes increasingly urgent and geopolitically complex.