OECD: Climate finance from developed to developing countries totalled USD 79.6 bn in 2019
PARIS, France, 17 September 2021: Climate finance provided and mobilised by developed countries for developing countries totalled USD 79.6 billion in 2019, up two per cent from 78.3 billion in 2018, according to new figures from the OECD.
The small increase was driven by a rise in public climate finance provided by multilateral institutions, while bilateral public climate finance commitments dropped, as did climate finance mobilised from private sources, OECD said through a Press release, issued for the purpose of sharing the new figures.
‘Climate Finance Provided and Mobilised by Developed Countries: Aggregate trends updated with 2019 data’ is the OECD’s fourth assessment of progress towards the UNFCCC goal of mobilising USD 100 billion per year by 2020 to help developing countries tackle and adapt to climate change.
“Climate finance continued to grow in 2019, but developed countries remain USD 20 billion short of meeting the 2020 goal of mobilising USD 100 billion,” Mathias Cormann, OECD Secretary-General, said. “The limited progress in overall climate finance volumes between 2018 and 2019 is disappointing, particularly ahead of COP26. While appropriately verified data for 2020 will not be available until early next year, it is clear that that climate finance will remain well short of its target. More needs to be done. We know that donor countries recognise this, with Canada and Germany now taking forward a delivery plan for mobilising the additional finance required to reach the USD 100bn a year goal.”
The report finds that public climate finance from developed countries reached USD 62.9 billion in 2019. Bilateral public climate finance accounted for USD 28.8 billion, down 10% from 2018, and multilateral public climate finance attributed to developed countries accounted for USD 34.1 billion, up by 15% from 2018, the report revealed. The level of private climate finance mobilised was down four per cent at USD 14.0 billion in 2019, after USD 14.6 billion in 2018. Climate-related export credits remained small at USD 2.6 billion, accounting for just three per cent of total climate finance, the report said.
The report also shows that out of the overall climate finance in 2019, 25% went to adaptation (up from 21% in 2018), 64% went to climate change mitigation activities (down from 70% in 2019), and the remainder to cross-cutting activities. More than half of total climate finance targeted economic infrastructure – mostly energy and transport – with most of the remainder going to agriculture and social infrastructure, notably water and sanitation, the report said.
Asia has been the main beneficiary of climate finance over 2016-19, with 43% of the total, on average, followed by Africa (26%) and the Americas (17%), the report said. Climate finance for Least Developed Countries rose strongly in 2019 (up 27% on 2018), but funding for Small Island Developing States fell back to 2017 levels (from USD 2.1 billion to 1.5 billion) after a temporary increase in 2018, the report pointed out.
The data confirm that SIDS face specific challenges in accessing climate finance. The international community needs to consider financing for climate that is appropriate for the challenges that SIDS face, less fragmented, easier to access, predictable and long-term, the report said.
Cormann said: “It is more urgent than ever that developed countries step up their efforts to deliver finance for climate action in developing countries, particularly to support poor and vulnerable countries to build resilience against the growing impacts of climate change.”
In terms of public finance instruments, public grant financing jumped by 30% from 2018 to reach USD 16.7 billion in 2019, after having remained stable the three previous years. In contrast, the volume of public loans, which had increased significantly up to 2018, fell by five per cent in 2019. As a result, the share of grants in overall public climate finance was 27% in 2019, while loans (both concessional and non-concessional) represented 71%.
UAE, US commit to jointly tackle climate challenge
ABU DHABI, UAE, 5 April 2021: The United Arab Emirates and the United States announced their joint commitment to tackle the climate challenge in a Joint Statement that stresses the importance and urgency of raising global climate ambition. Both countries announced their intent to cooperate on new investments in financing decarbonisation across the MENA region and beyond, and to focus on assisting the most vulnerable adapt to the effects of climate change.
H.E. Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and the UAE’s Special Envoy for Climate Change, said: “Together with the US, the UAE has affirmed that decisive, proactive climate action can be an engine for economic growth and sustainable development. Building on the legacy and experience of the UAE, which has demonstrated a longstanding commitment to sustainable development and today operates three of the world’s largest solar facilities, we will focus, together with the US, on joint efforts on renewable energy, hydrogen, industrial decarbonization, carbon capture and storage, nature-based solutions, and low-carbon urban design.
“The UAE is rich in opportunities with the world’s lowest solar power costs, and significant carbon capture investments. We look forward to sharing our experience with the international community to turn climate action into economic opportunity.”
Noting the progress made by many leading companies, both countries agreed to work closely with the private sector to mobilize the necessary investment and technology resources needed to stem the climate crisis and support the economy.
At the national level, the United States and the United Arab Emirates confirmed their intent to work towards decarbonising their economies according to their national circumstances and economic development plans, including reducing carbon emissions by 2030.
The United States and the United Arab Emirates stressed their commitment to the implementation of the Paris Agreement and promote the success of the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow.
The Joint Statement emerges from the UAE Regional Dialogue for Climate Action, held on April 4. The event convened climate leaders from across the MENA region and unveiled a new era of cooperation in the region for a future focused on prosperity through climate policy, investment, innovation and sustainable economic growth.
The Dialogue drew the participation of high-level dignitaries from across the region as well as critical global partners and organisations. Participants included COP26 President-Designate, Alok Sharma and US Special Envoy for Climate, John Kerry, together with ministers and high-level representatives from the UAE, Oman, Kuwait, Bahrain, Qatar, Egypt, Jordan, Morocco, Iraq, Sudan and the International Renewable Energy Agency (IRENA). The event further reinforced the UAE’s regional climate leadership, providing a common ground for participating nations to build a shared vision for climate action ahead of COP26.