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:

• Public climate finance (bilateral and multilateral attributable to developed countries) accounted for close to 80% of the total in 2022 and increased from USD 38 billion in 2013 to USD 91.6 billion in 2022.
• Following a small drop in 2021, adaptation finance reached USD 32.4 billion in 2022, three times the 2016 level. Mitigation continued to account for the majority, representing 60% of the total.
• Private finance mobilised by public climate finance grew by 52%, following several years of relative stagnation.

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:

• Support for building capacity in terms of project development, financial literacy, and operational efficiency strengthens developing countries’ abilities to access, absorb, and effectively utilise climate finance.
  
  
• There is a need for international providers to adapt and evolve the financial products and mechanisms they offer to enhance the reach and effectiveness of climate finance.
  
  
• International providers should collaborate more coherently and systematically, notably through country and regional platforms and other long-term arrangements.

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 figures capture four distinct components of climate finance provided and mobilised by developed countries:

• Bilateral public climate finance provided by developed countries’ institutions, notably bilateral aid agencies and development banks;
• Multilateral public climate finance (provided by multilateral development banks and multilateral climate funds), attributed to developed countries;
• Climate-related officially supported export credits, provided by developed countries' official export credit agencies, and;
• Private finance mobilised by bilateral and multilateral public climate finance, attributed to 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.