Funding for fight against climate change reached $62 billion in 2014
Funding to help developing countries fight climate change reached $62 billion in 2014, a new report by Organisation for Economic Co-operation and Development and the Climate Policy Initiative revealed.
The report, which intends to provide an up-to-date estimate on public and private climate finance, also notes that the funding stood at $53 billion in 2013 thus making an average of $57 billion annually over the 2013-14 period, the report notes. According to the UNFCCC 2010 Cancun commitment, developing countries will mobilise a funding of $100 billion per year by 2020 to address the needs of developing countries to tackle and adapt to climate change.
The $62 billion in 2014 means that the climate finance goal has reached halfway in terms of time and more than halfway there in terms of finance; however, OECD Secretary-General Angel Gurría says that there is a lot more that needs to be done to achieve the goal.
CPI Senior Director Barbara Buchner says that through this report they intend to not only contribute to transparency in the whole process, but also intend to build confidence ahead of the UN climate summit in Paris in December.
The report provides an objective picture of climate flows based on data specially provided by countries and financial institutions. Finance relating to coal projects was excluded from this aggregate estimate.
The OECD-CPI report’s estimate comprises public money provided by donor governments through various instruments and institutions, including non-concessional loans. It also includes private funding for climate-related projects that have been directly mobilised by developed country public financial interventions. There is an acknowledgement of the important role played by capacity building and policy related interventions as well as enabling environments, although it is an outstanding challenge to account for these in quantitative terms.
Public finance, either bilateral or multilateral, accounted for more than 70 per cent of the flows during 2013-14, while mobilised private finance made up more than 25 per cent and export credits the remainder. Over three-quarters of total estimated climate finance was to support mitigation activities, with about one sixth going to support adaptation and a small share targeting both.
Released in advance of COP21 to increase transparency about progress towards the USD 100 billion goal, the report builds on other recent international efforts to improve the tracking of climate finance, including by the UNFCCC Standing Committee on Finance. The lessons learned from conducting this exercise may be helpful in informing efforts to further improve the transparency and comprehensiveness of climate finance measuring, tracking and reporting. The OECD and CPI stand ready to support such efforts.