Developed countries may have reached their target to provide $100bn/yr in climate finance to developing countries last year, the OECD said today.
This is based on preliminary and "as yet unverified" data, the OECD said. Developed countries in 2009 pledged to deliver $100bn/yr in climate finance to developing nations by 2020, but missed that deadline. Some developed countries said earlier this year that the goal was likely to be reached this year.
Climate finance provided by developed countries amounted to $89.6bn in 2021, the OECD said today — higher than the institution had previously estimated for the year. The amount of climate finance from developed countries rose by 7.6pc on the year in 2021 — well above the 2.1pc average annual growth over 2018-2020.
The vast majority of climate finance mobilised in 2021 was public finance. Multilateral public finance made up 43pc of the total, at $38.7bn, while bilateral public finance stood at $34.5bn, or 38.5pc. Export credits were $2bn, while private finance amounted to $14.4bn in 2021 — level with 2019 and slightly lower than figures for 2017 and 2018.
Finance for mitigation in 2021 — cutting emissions — took the biggest share, at 60pc, OECD data show. Cross-cutting finance, for both mitigation and adaptation — adjusting to climate change where possible — made up 13pc. Adaptation finance stood at 27pc of the total in 2021, though this dropped from 34pc in 2020, the OECD said. Developed countries committed at the UN Cop 26 climate summit to double adaptation finance by 2025, from a 2019 baseline.
The share of climate finance targeting small island developing states and least developed countries — considered the most vulnerable to climate change — grew over the five years to 2021.
Recent rounds of climate talks have been marked by a growing lack of trust, while action on mitigation has stalled, as developing nations call on developed countries to meet commitments and provide meaningful climate finance. Discussions will continue at Cop 28, set to start in two weeks, in Dubai, UAE.
