Developed countries delivered $115.9bn in climate finance for developing nations in 2022 — surpassing for the first time a commitment to provide $100bn/yr over 2020-25, data from the OECD show.
Climate finance mobilised and provided by developed to developing nations rose by 29pc on the year, from $89.6bn in 2021, OECD data show. Public finance made up the majority of the $115.9bn in 2022 — $41bn in bilateral public finance and $50.6bn in multilateral public finance, according to the OECD. Private finance accounted for $21.9bn and export credits for $2.4bn, the OECD said.
Developed countries pledged in 2009 to provide $100bn/yr in climate finance to developing countries over 2020-25, although the goal was missed in 2020 and 2021. The OECD said in November — just ahead of the UN Cop 28 climate summit — that the goal was likely to have been met in 2022 and today's report confirms this.
The majority of the public climate finance was in the form of loans — at 69pc of all public climate finance. The level of grants has steadily increased since 2016, but loans often increase the debt burden for developing nations.
The bulk of the finance provided in 2022 was for mitigation — cutting emissions — at $69.9bn or 60pc, the OECD said. Mitigation finance made up the majority of climate finance in the 2016-22 period, but finance for adaptation — adjusting to climate change where possible — rose by almost a third on the year to $32.4bn in 2022.
Climate finance for countries most vulnerable to the effects of climate change — the least developed countries and small island developing states — rose consistently in the 2016-22 period, OECD data show. But private climate finance for those nations "was very limited, underscoring the need for tailored international support to help address the challenges… in attracting private investment for climate action," the OECD said.
Countries must decide on the next iteration of the $100bn/yr climate finance goal in November, at Cop 29 in Azerbaijan. Many developing countries are calling for a floor of $1 trillion/yr, while developed countries are yet to put a figure on the new goal. Countries will also have to settle a timeframe for the target, known as the new collective quantified goal.
The OECD for its climate finance report classes developed countries as those designated as 'Annex II parties' to UN climate body the UNFCCC — 24 including the EU — as well as all member states of the EU, Liechtenstein and Monaco.
