Developed countries miss climate financing goal

Finance provided by developed countries for climate action in developing countries rose in 2020, but fell short of targets agreed in 2009, OECD data showed today.

Climate finance from developed countries reached $83.3bn in 2020 — up by 3.6pc on 2019 levels and boosted by a rise in flows of public finance, the OECD said. Finance was mostly in the form of loans, which made up 71pc of the total.

But developed countries pledged in 2009 at the UN Cop 15 climate summit in Copenhagen to provide and mobilise $100bn/yr in climate financing to developing nations — many of which are not high emitters yet experience disproportionate consequences of climate change.

Climate financing from developed nations has steadily increased since 2015, when it totalled $44.6bn, but the growth has slowed in recent years, OECD data show. Financing jumped by $27bn or 60.5pc between 2015 and 2017, but rose by just $3.4bn or 4.3pc between 2018 and 2020.

If all commitments from the developed world are met, the $100bn level would be met in 2023 and exceeded up to 2025, OECD data show.

Climate financing in 2020 was largely directed towards mitigation, but funds for adaptation grew, making up a third of the total. Adaptation efforts were mostly focussed on water supply, agriculture, forestry and fishing. Developing countries in Asia were the main beneficiaries of climate financing between 2016 and 2020, receiving on average 42pc of the total. Countries in Africa and the Americas received 26pc and 17pc on average over the same timeframe.

The OECD tracks bilateral and multilateral public climate finance, private climate finance and climate-related officially supported export credits, all from developed to developing countries.

By Georgia Gratton