Shadow report on climate finance 2020
Oxfam published its Shadow report on climate finance 2020, which assesses progress towards the $100 billion goal based on the latest donor numbers for 2017-18: https://www.oxfam.org/en/research/climate-finance-shadow-report-2020
Against a backdrop of rising and unsustainable debt in many low income countries, the report highlights the excessive provision of loans (including to LDCs) and an increase in non-concessional climate finance as deeply concerning. Fiona Harvey explores this dimension in an article in today’s Guardian: https://www.theguardian.com/global-development/2020/oct/20/climate-finance-driving-poor-countries-deeper-into-debt-says-oxfam
Oxfam estimates that in 2017-18:
- Reported public climate finance amounted to $59.5 billion per year, but the value of climate support to developing countries once loan repayments, interest, and finance not targeting climate action are striped out, was only a third of that reported ($19-22.5bn/year).
- Only around 20% of public climate finance was grants ($12.5bn/year); the other 80% was loans (and other non-grant instruments).
- Over half of loans (and other non-grant instruments) were non-concessional ($24bn/year) - representing 40% of total public climate finance overall. A major increase compared to 30% in 2015-16 ($13.5bn/year).
- Adaptation finance rose faster than it has for many years, from around $9bn (20%) per year in 2015–16 to $15bn (25%) per year in 2017–18.
- Finance to Least Developed Countries (LDCs) was only 20.5% and to Small Island Developing States (SIDS) it was 3% - 60% of finance to LDCs was in the form of loans, and for SIDS it was nearly half.
The report also includes analysis of mobilised climate finance, the extent to which climate finance takes account of gender, and more.