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Source– This post is based on the article “The OECD Report on Climate Finance” published in “The Hindu” on 21 November 2023.
Why in the News?
The Organisation for Economic Cooperation and Development (OECD) has published a new assessment report on climate finance ahead of the UN climate summit (COP28) in Dubai, UAE.
What is OECD?
What is Climate Finance?
What are the Key Findings of the Report?
| Total climate finance | In 2021, total climate finance provided and mobilised by developed countries for developing countries amounted to USD 89.6 billion, showing a significant 7.6% increase over the previous year. However, this fell short of the target to jointly mobilise $100 billion a year, as pledged by the developed nations at COP15 (Copegnhagen, Denmark) in 2009. |
| Public Climate Finance (bilateral and multilateral) Contribution | 1. It almost doubled over the 2013-21 period, from USD 38 billion to USD 73.1 billion, accounting for the vast majority of the total USD 89.6 billion in 2021. 2. But almost two-thirds of public climate financing was provided as loans. It means the conditions attached to such financing could further exacerbate debt stress in poorer countries. |
| Private Climate finance | The report shows that private financing for climate action has stagnated for a decade. In 2021 in particular, it showed that private funding reverted to its 2019 level following a slight dip in 2020. |
| Adaptation finance | Finances for adaptation dropped by 14% in 2021 compared to 2020. As such, their share in the total climate finance has decreased from 34% to 27%. |
| Financial assistance needed by developing countries | By 2025, developing countries are estimated to require around $1 trillion a year in climate investments, rising to roughly $2.4 trillion each year between 2026 and 2030. |
UPSC Syllabus- Environment & International Organisations
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