Paris: Developed nations have once again exceeded the USD 100 billion climate finance target, providing and mobilizing USD 132.8 billion in 2023 and USD 136.7 billion in 2024 to support developing countries, according to new data from the OECD. This marks the third consecutive year the goal has been surpassed, reflecting a sustained effort to address climate change challenges in developing regions.
According to Emirates News Agency, the Climate Finance Provided and Mobilised by Developed Countries in 2013-2024 report highlights the ongoing progress since the goal was first established under the United Nations Framework Convention on Climate Change (UNFCCC) in 2009. Originally set to be achieved by 2020, the USD 100 billion annual target was extended to 2025, with the OECD tracking advancements since 2015.
OECD Secretary-General Mathias Cormann emphasized the significance of this achievement, noting the increased allocation of both mobilized private finance and adaptation finance as crucial for developing countries to meet their climate goals. Mitigation finance, aimed at reducing greenhouse gas emissions, continued to dominate the funding, making up nearly two-thirds of the total climate finance provided.
The report also sheds light on the growth of mobilized private finance, which reached USD 30.5 billion in 2024. This increase, largely driven by multilateral development banks (MDBs), represents the largest annual growth since 2016, with a notable rise of USD 7.6 billion from the previous year. This upward trend underscores the essential role of private investment in scaling up climate finance for developing nations.
However, adaptation finance, which is vital for building resilience against climate impacts, experienced slower growth. It accounted for one-quarter of the total climate finance in both 2023 and 2024, a decrease from its peak in 2020. The 2021 Glasgow Climate Pact set a goal to double adaptation finance by 2025 compared to 2019 levels, necessitating an increase of over USD 5 billion by developed countries.
The distribution of climate finance remained uneven, with middle-income countries receiving the majority of the funds. Support for low-income countries saw a decline to USD 8.4 billion in 2023, recovering only partially to USD 9.6 billion in 2024, still below its 2022 peak of USD 11.1 billion.