Further development of the IKI

In 2025, the International Climate Initiative (IKI) implemented numerous actions aiming to furthe improve its processes and effect as a funding programme.

IKI Large Grants as a new part of IKI Compete

To meet the requirements resulting from developments in climate change mitigation and biodiversity conservation, the International Climate Initiative (IKI) has reorganised its competitive funding instrument, IKI Compete. The previous thematic and country calls were combined into the IKI Large Grants (ILG) initiated in 2025. 

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The ILG enable the funding of large-volume projects in order to speed up the transformation to a sustainable, biodiversity-friendly and low-emission economic and supply structure. In this way, the ILG support systemic change at the global, regional, national and sub-national level. 

As in the case of the expiring thematic and country calls, the ILG will stage an annual ideas competition, also referred to as a call. The individual calls have different thematic and country priorities. The respective priorities are based on the results of international negotiations held in connection with the United Nations Framework Convention on Climate Change (UNFCCC) and the Convention on Biological Diversity (CBD). They also reflect the strategic objectives and geographical orientation summarised in the “Strategy of the International Climate Initiative up to 2030” for the funding programme.

The country priorities are each closely coordinated with the partner ministries of the respective IKI priority countries. The assessment and selection of the outlines for country priorities is also performed in close coordination with the partner ministries, thus strengthening mutually beneficial cooperation.

The first ILG Call 2025 was launched by the German Federal Minister for the Environment Carsten Schneider at the 30th World Climate Conference (COP30) in Belém, Brazil, as part of the IKI High Level Event in the German Climate Pavilion. 

Foundation laid for IKI programme monitoring and evaluation system

In times of limited financial resources and increasing demand, constant monitoring, evaluation and learning are particularly important in order to use funds as strategically and efficiently as possible. The IKI made significant progress in this area in 2025. The targets of the IKI Strategy up to 2030 were operationalised in full and can now be measured at the level of each individual project, aggregated on a country-specific basis and used as reliable verification of target achievement at programme level. For this purpose, the IKI Office of Zukunft – Umwelt – Gesellschaft (ZUG) gGmbH, as the project management agency, introduced a new annex (Annex 9 – “IKI’s Strategic Objectives report”) to the standard project documents, which is used both for proposals and reporting.

In October 2025, the IKI Office of ZUG published a revised version of the IKI Project Planning and Monitoring Guidelines. In addition to the added elements for the measurement of the IKI strategic targets, the newly designed structure and user-friendly design constitute a clear gain for all project participants.

Furthermore, an IKI programme monitoring and evaluation system was developed on the basis of the IKI Strategy up to 2030. In future, the system will not only deliver knowledge acquired at project level, but will also enable analyses at the level of individual funding instruments, countries and the entire IKI. The first steps towards programme evaluation are already planned for 2026.

2025 has therefore laid another cornerstone for stronger data-based management and demonstrates how climate change mitigation and biodiversity conservation projects can be managed in a measurable and effective way.

Revision of the IKI regulation on the handling of emission credits

  1. After the rules for Article 6 of the Paris Agreement were finalised at COP29 in Baku, the IKI revised its regulations on the handling of emission credits and published an updated online version in September 2025. 
  2. The updated regulations contain specifications ensuring a clear separation between climate finance funds that qualify for Official Development Assistance (ODA) and compliance markets for emission credits. These rules therefore contribute to strengthening the further development and piloting of market-based instruments of Article 6 as part of IKI projects. This includes, in particular, activities for introducing and strengthening greenhouse gas pricing instruments and promoting the integrated use of carbon markets within the framework set out in Article 6. 

Improved processes for the IKI Safeguards

The obligations of prudent action with regard to the IKI Safeguards Policy are defined in line with the UN Guiding Principles on Business and Human Rights (UNGP). In order to improve practical implementation, the handling of incidents especially has been redesigned this year. 

Specifically: if damage occurs in the context of an IKI project within the meaning of the IKI Safeguards, a systematic assessment of the involvement of the project is conducted. 

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This takes place in accordance with the UNGP categories of “cause”, “contribution” and “connection”. Specific responsibilities emerge depending on the classification. The IKI aims to take remedial action and prevent further damage. For this purpose, it cooperates closely with the implementing organisations. These organisations must report incidents to the IKI within 72 hours and complete the Serious Incident Reporting Form.

IKI Annual Report 2025

This article is part of the IKI Annual Report 2025.

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