At the 15th Conference of Parties (COP15) of the UNFCCC in Copenhagen in 2009, developed countries committed to a collective goal of mobilising USD 100 billion per year by 2020 for climate action in developing countries, in the context of meaningful mitigation actions and transparency on implementation. The goal was formalised at COP16 in Cancun, and at COP21 in Paris, it was reiterated and extended to 2025.
At the request of donor countries, the OECD has been tracking progress towards this goal since 2015. It produces regular analyses of progress made, based on a robust accounting framework that is consistent with the COP24 outcome agreed by all Parties to the Paris Agreement on funding sources and financial instruments.
Released on 29 May 2024: The OECD’s seventh assessment of progress towards the UNFCCC goal finds that in 2022 developed countries provided and mobilised a total of USD 115.9 billion in climate finance for developing countries, exceeding the annual USD 100 billion goal for the first time. This achievement occurs two years later than the original 2020 target year, but one year earlier than in projections produced by the OECD prior to COP26.
The analysis presented in the report finds that:
OECD analysis on trends of climate finance provided and mobilised by developed countries for developing countries show that there is a pressing need for international providers to significantly scale up their efforts in two essential areas: adaptation finance and the mobilisation of private finance. Scaling up both adaptation finance and the mobilisation of private finance requires a major reorientation in the scope, composition, and strategic use of international climate finance.
In 2023, the OECD released two special reports, available below, that outline a set of actions and recommendations for international providers to increase finance for adaptation, and to more effectively mobilise private finance for climate action. Relevant to both reports are the following key messages:
Read the report Scaling up the mobilisation of private finance for climate action in developing countries: Challenges and opportunities for international providers.
Read the report Scaling up adaptation finance in developing countries: Challenges and opportunities for international providers.
At the UNFCCC COP21 in 2015, Parties decided to set a New Collective Quantified Goal (NCQG) on climate finance prior to 2025, amounting to at least USD 100 billion per year and taking into account the needs and priorities of developing countries. Released on 27 May 2024, the OECD-IEA Climate Change Expert Group (CCXG) paper “The New Collective Quantified Goal on climate finance: Options for reflecting the role of different sources, actors, and qualitative considerations” explores options for the design and scope of the forthcoming NCQG to reflect the importance of international public finance as well as the need to scale up private finance, while also recognising the magnitude and effectiveness of such finance depends on the domestic context and actions by all Parties.
OECD roundtable on climate finance at the Bonn Climate Change Conference (in-person only)
When: Wednesday 5 May, 12:45 to 14:30 local time in Bonn.
Where: World Conference Center Bonn (UNFCCC conference venue), European Union coordination room (mezzanine floor facing the Plenary Hall).
The event will explore selected elements for an ambitious NCQG, building on research from the OECD and lessons learned from the USD 100 billion goal. Speakers will share perspectives on how to land a robust outcome at COP29 to address current challenges and support enhanced climate action:
OECD figures capture four distinct components of climate finance provided and mobilised by developed countries:
OECD publications relating to the USD 100 billion goal also include less forward analyses. The most recent one, released in 2021 ahead of COP26, provided scenarios for the period 2021-2025, based on most recent pledges made by bilateral and multilateral public climate finance providers. It indicates that the USD 100 billion could be met as of 2023.
