Developed nations exceed climate finance pledges by providing $115.9B to developing countries in 2022

By Emir Yikdirim

ISTANBUL (AA) – Developed countries exceeded their climate finance commitment by providing $115.9 billion to developing countries in 2022, up 30% from the annual goal of $100 billion, according to a report released on Wednesday by the Organization for Economic Cooperation and Development (OECD).

OECD Secretary-General Mathias Cormann commended the achievement as a step toward building trust, saying: “It will be important to sustain this level of elevated support through to 2025 while also increasing our ambition for the new post-2025 goal. Multilateral providers and the private sector will be key to further bridging the investment gap, in areas such as clean energy, agriculture and resilience.”

The report highlighted that the New Collective Quantified Goal (NCQG), which aims to raise $100 billion in climate finance annually, should be more comprehensive and meet the scale of climate-related financial needs by optimizing the roles of different actors and policy incentives.

Public funds from both bilateral and multilateral channels made up 80% of the total climate finance, and the mobilized private finance reached $21.9 billion in 2022, as per the report.

Adaptation finance amounted to $32.4 billion in 2022, putting it halfway to meeting the goals of the COP26 Glasgow Climate Pact, which called for doubling adaptation finance by 2025.

“Least developed countries (LDCs) and small island developing states (SIDS), benefitted from a larger amount of finance for adaptation (about 50%) than the average for all developing countries (25%),” the report said.

“The OECD will continue to track the fulfillment of the $100 billion goal through to 2025, as well as, pending the outcome of COP29 in Baku, contributing to international efforts to implement the NCQG in an effective way,” it added.