OECD reports $115.9bn climate finance mobilised in 2022, but experts challenge the claim | Latest News India

Developed countries exceeded the annual $100 billion goal for climate finance in 2022, reaching a record $115.9 billion, according to the Organisation for Economic Co-operation and Development (OECD). This milestone, achieved earlier than expected, has sparked both celebration and skepticism within the climate finance community.

While the OECD report highlighted the increased role of public climate finance and a greater focus on adaptation, experts like Rebecca Thissen from Climate Action Network raised concerns about the dominance of loans in the total finance amount. Thissen emphasized the importance of grant-based finance for climate justice and real needs in developing countries.

The report revealed that in 2022, 69% of developed countries’ climate finance came in the form of loans, with only 28% as grants. This trend continued over the period 2016-2022, with multilateral development banks providing close to 90% of financing in the form of loans.

Critics like Sehr Raheja from the Centre of Science and Environment called for more transparency and a shift towards concessional lending to better support developing countries. They argued that the current mix of loans and grants may not effectively address the financial needs of transitioning away from fossil fuels and dealing with climate impacts.

As discussions continue on setting new climate finance goals, the focus remains on ensuring transparency, integrity, and genuine support for developing countries. The debate over the definition and composition of climate finance underscores the need for a clear and accountable approach to addressing the global climate crisis.