OECD reports $115.9 billion raised in climate finance | Latest News from India

Developed countries have exceeded the annual goal of providing and mobilizing $115.9 billion in climate finance for developing countries in 2022, according to the Organisation for Economic Co-operation and Development (OECD). This milestone, achieved for the first time, was unexpected before 2025, marking a significant step towards addressing climate change.

However, experts have raised concerns about the composition of this finance, with loans accounting for the majority of the funds. This has sparked debates about the effectiveness of climate finance and its impact on climate justice.

Rebecca Thissen, Global Lead Multilateral Processes at Climate Action Network, emphasized the need for public grant-based finance to address the real needs of developing countries in adapting to climate change and reducing emissions. The OECD report acknowledged the dominance of loans in climate finance, with multilateral development banks providing close to 90% of financing in the form of loans.

As discussions continue on the future of climate finance, COP29 President-Designate Mukhtar Babayev called on developed countries to fulfill their commitments and mobilize funds to support developing countries in transitioning to a sustainable future. The debate also highlights the lack of transparency and clarity in defining climate finance, raising questions about the integrity and genuine support provided by developed nations.

Climate activists and experts stress the urgency of delivering substantial financial support to address the escalating needs of developing countries in combating climate change. The call for more grants-based and concessional lending reflects the ongoing challenges in aligning climate finance with the needs of vulnerable nations.