Developed nations have once again surpassed their long-standing climate finance commitment, marking the third consecutive year of exceeding the USD 100 billion annual goal. According to fresh OECD data, contributions reached USD 132.8 billion in 2023 and climbed further to USD 136.7 billion in 2024. This milestone reflects a growing dedication to supporting developing economies in their efforts to mitigate and adapt to climate change.
The OECD’s latest report, Climate Finance Provided and Mobilised by Developed Countries in 2013–2024, highlights that the target originally set under the UNFCCC in 2009 was first exceeded in 2022 with USD 115.9 billion. Since then, the upward trajectory has continued, underscoring the collective resolve of advanced economies to meet and expand upon their commitments through 2025. OECD Secretary-General Mathias Cormann emphasized that the achievement demonstrates “clear commitment to supporting developing economies,” noting the rise in both mobilised private finance and adaptation funding.
Private Sector and Adaptation Climate Finance Trends
Private sector involvement has been a key driver of this growth. Mobilised private finance surged to USD 30.5 billion in 2024, representing the strongest annual increase since 2016. This 33% jump was largely propelled by multilateral development banks, reinforcing the importance of partnerships in scaling climate-related investments. Meanwhile, adaptation finance, critical for building resilience against climate impacts, accounted for one quarter of total flows in both 2023 and 2024. While this marks steady progress, it remains below the one-third share recorded in 2020, signaling that further acceleration will be necessary to meet the Glasgow Climate Pact’s call to double adaptation finance by 2025.
Despite these advances, challenges persist. Climate finance remains concentrated in middle-income countries, while support for low-income nations has declined from its 2022 peak of USD 11.1 billion. Although funding recovered slightly to USD 9.6 billion in 2024, it continues to lag behind earlier levels.
Looking ahead, the OECD will continue monitoring progress through 2025, with a final report expected in 2027. Under the UNFCCC, parties have already adopted a New Collective Quantified Goal (NCQG) for 2026–2035. The first assessment, scheduled for 2028, will require coordinated efforts to strengthen frameworks, improve data comparability, and enhance transparency. These steps will be vital to ensuring that climate finance not only meets numerical targets but also delivers meaningful impact where it is most needed.
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