According to the OECD, developed countries contributed $83.3 billion to climate financing

1 Aug 2022 , 01:41 PM

According to a new OECD estimate released on Friday, rich countries will have contributed and mobilized $83.3 billion in climate funding for climate action in poor nations by 2020.

This is an additional 4% rise from 2019, which came after a 1% increase from 2018 to 2019. The ambition of rich nations to contribute and mobilize $100 billion annually for poor countries by 2020 is yet unmet. Public flows increased, which was the main factor behind the growth in 2020 climate financing.

The OECD’s fifth annual evaluation of progress toward the UNFCCC target is titled Aggregate Trends of Climate Finance Provided and Mobilized by Developed Countries in 2013-2020. The UNFCCC Standing Committee on Finance Report, which is being produced for COP27, will include information from this year’s Aggregate Trends of Climate Finance Report, which is being issued earlier than in prior years.

Public climate funding made up the majority of the total from 2013 to 2020, rising from $38 billion in 2013 to $68.3 billion in 2020. Within that total, multilateral flows increased throughout the period 2013—20 by 138%, while bilateral flows increased by 40%.

Despite a decline between 2019 and 2020, mobilized private climate financing, for which comparable statistics are only available from 2016, climbed by about 30% during 2016—20. Climate-related export credits continue to make up a minor portion of the total. The majority of climate financing in 2020 went toward reducing the effects of climate change, while funding for adaptation activities increased and now made about a third of the total.

While adaptation financing concentrated on operations in water supply and sanitation as well as agriculture, forestry, and fisheries, mitigation finance was mostly focused on energy and transportation activities.

As in previous years, loans made up the majority of public climate funding in 2020, accounting for 71% of the total, an increase of 8% in volume terms from 2019. In absolute terms, the amount of public climate money delivered as grants increased as well, making up 26% of the total. From 2016 to 20 on average, developing nations in Asia received 42% of all climate money, followed by those in Africa (26%), and the Americas (12%). (17 %).