According to a new analysis by the Organization for Economic Co-operation and Development (OECD), developed countries provided $83.3 billion in 2020 as climate finance. While it represents a 4% increase from the previous year, it still fell short of their pledge to transfer $100 billion per year to the vulnerable nations.
The bulk of the funding, granted as loans, went to upper and lower middle income countries. Low income nations that are in most need of finance received just 8% of the funding.
The report “confirms what was largely feared about climate finance in 2020: that developed countries failed to meet the $100 billion goal due that year; that mobilization of private finance has totally stagnated; and that despite a growing debt crisis most public climate finance remains in the form of loans,” said Joe Thwaites at the Natural Resources Defense Council.
Climate finance remains highly contentious in climate politics and is expected to be high on the agenda again during COP27 in Egypt. “Honoring that commitment is central to renew trust,” said Yamide Dagnet, Climate Justice Director at the Open Society Foundations. “We need developed countries to present credible plans to escalate their climate finance.”