Developed countries provided and mobilised climate finance totalling $132.8bn and $136.7bn in 2023 and 2024, respectively, for developing nations, exceeding a commitment to provide $100bn/yr over 2020-25, OECD data show.
The levels for 2022-24 "are significantly above OECD projections from 2021 based on forward-looking commitments and estimates", the OECD said. Developed countries first hit the goal in 2022, when they delivered $115.9bn in climate finance.
Public climate finance made up the majority of the total in both 2023 and 2024, at 78.5pc and 74.3pc, respectively. Bilateral public climate finance stood at $50.2bn and $43.9bn in 2023 and 2024, while multilateral public climate finance reached $54.1bn and $57.7bn in the same timeframe.
Private climate finance also rose, to $22.9bn or 17.2pc of the total in 2023, and $30.5bn or 22.3pc in 2024 — the latter a record high according to OECD data. Climate-related export credits accounted for a smaller share of the total, at $5.6bn in 2023 and $4.6bn in 2024.
The bulk of the finance OECD tracked was in the form of loans — which made up 73pc in 2023 and 67pc in 2024. The level of grants has steadily increased since 2016, and reached 24pc and 29pc in 2023 and 2024, respectively. Of the bilateral loans provided, around three-quarters were concessional, with preferential terms compared with market loans, the OECD found. Loans can increase the debt burden for developing countries. Grant financing "was significantly more prominent in low-income countries", the OECD said.
Most of the finance went to mitigation efforts, or cutting emissions. Finance for adaptation — adjusting to the effects of climate change where possible — rose to $33.6bn and $34.7bn in 2023 and 2024, OECD data show. Countries agreed in 2021 to double adaptation finance by 2025, from 2019 levels, suggesting a target of around $40bn for 2025.
"The sectoral composition of climate finance has remained broadly stable since 2016," between mitigation, adaptation and cross-cutting finance, the OECD said. "Energy represented a very significant share of mitigation finance" over 2016-24, at around 41pc, it added.
Climate finance is typically a central topic at UN Cop climate summits, as many countries note the need for financial support for their energy transitions. Almost 200 countries agreed in 2024 at Cop 29 on a goal that will see developed countries "take the lead" on providing "at least" $300bn/yr in climate finance to developing nations by 2035. This is the new iteration of the $100bn/yr goal, which covered 2020-25.
The OECD does not capture all finance for climate action in developing countries, as it only tracks climate finance provided and mobilised by developed countries.
Data for 2025 will not be available before 2027 "at the earliest", the OECD said today.
