Developed Nations Surpass $100 Billion Climate Finance Pledge

Developed countries have exceeded expectations by providing and mobilizing USD 115.9 billion in climate finance for developing countries in 2022, surpassing the annual 100 billion goal for the first time. This achievement marks a significant milestone in the global effort to combat climate change.

According to the latest data from the OECD, climate finance in 2022 saw a 30% increase from the previous year, totaling USD 26.3 billion. This substantial growth not only exceeded projections but also reached the 100 billion mark a year earlier than anticipated.

The OECD’s assessment of progress towards the UNFCCC goal highlights the importance of developed countries fulfilling their commitments to support developing nations in mitigating and adapting to climate change. The exceeding of the 100 billion goal in 2022 is seen as a positive step towards building trust and encouraging further efforts to boost private climate finance.

The report also emphasizes the need for a New Collective Quantified Goal (NCQG) on climate finance for the post-2025 period, taking into account evolving global economic landscapes and the specific needs of developing countries. It calls for sustained support through 2025 and increased ambition for the new goal to address the scale and range of climate-related finance needs.

The data shows that public funds, both bilateral and multilateral, continue to be the primary source of climate finance, accounting for 80% of the total. However, there has been a significant increase in mobilized private finance, indicating a growing interest from the private sector in climate-related investments.

Overall, the 2022 climate finance figures demonstrate progress in supporting adaptation efforts, with a notable increase in finance directed towards adaptation actions. Developed countries are now halfway towards meeting the COP26 Glasgow Climate Pact’s call to double the provision of adaptation finance by 2025.

As the OECD continues to track progress towards the 100 billion goal and contribute to international efforts to implement the NCQG, the focus remains on leveraging diverse sources of finance and addressing the unique challenges faced by different regions in attracting investment for climate action.