OECD Report on Climate Finance

Background:

• The report by the Organisation for Economic Cooperation and Development (OECD) evaluates the progress of developed countries in mobilizing climate finance.
• It focuses on the commitment made at COP 26 in 2020 by developed nations to double adaptation finance.

Findings of the Report:

• Developed countries failed to meet their target of mobilizing $100 billion annually for climate mitigation and adaptation in developing countries, reaching only $89.6 billion in 2021.
• There was a 14% decrease in finance for adaptation in 2021 compared to 2020.
• The majority of the $73.1 billion mobilized in 2021 was through loans, with a significant portion at commercial rates.
• The report suggests that developing countries will need around $1 trillion annually by 2025 for climate investments, increasing to about $2.4 trillion each year from 2026 to 2030.
• The current goal of $100 billion is significantly lower than the actual needs.

Why in News:

• Recently, the OECD Report on Climate Finance was released ahead of COP 28.