Climate change investment continues to increase

8 Oct 15

Rich countries invested $62bn in developing countries in 2014 in order to tackle climate change, up from $52bn the previous year, a report has found. 

Climate Finance in 2013-14 and the $100bn goal, published by the Organisation for Economic Cooperation and Development, highlighted its latest estimates of public finance provided by donor governments through various instruments and institutions.

The report also provides an estimate of private finance that has been mobilised from developed countries. 

Public finance accounted for more than 70% of the flows during 2013/14, while mobilised private finance made up more than 25% and export credits the remainder.

The OECD said over three-quarters of total estimated climate finance was used to support policies and programmes that avoid or stabilise the emission of greenhouse gases into the atmosphere. About one sixth of the funds supported adaptation and a small share targeted both.

“Our estimates paint an encouraging picture of progress,” said OECD secretary-general Angel Gurría.

“We are about halfway in terms of time and more than halfway there in terms of finance, but clearly there is still some way to go.”

Climate finance forms part of negotiations by developed countries towards their UNFCCC (United Nations Framework Convention on Climate Change) 2010 commitment.

The UNFCCC, which has 196 members, aims to support cooperative action by countries to combat climate change and its impacts on humanity and ecosystems and mobilise jointly $100bn a year by 2020 for climate action in developing countries. 

  • Judith Ugwumadu
    Judith Ugwumadu

    Judith writes about public finance, public services and economics across Public Finance International and Public Finance. She previously undertook reporting stints at Financial Adviser, Global Security Finance and The Sunday Express.

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