Oxfam reaction to the OECD climate finance report – Global
In response to the report released today by the Organization for Economic Co-operation and Development (OECD) on climate finance flows from developed to developing countries, Tracy Carty, Senior Climate Change Policy Advisor at Oxfam, said :
“These figures confirm that too much of climate finance from governments and development banks takes the form of loans that force poorer countries into more debt as they battle the impacts of climate change. It is particularly unfair that a meager 14% of climate finance goes to the least developed countries and only 2% to small island developing states, which have contributed least to the climate crisis but are hardest hit.
“Climate finance is a lifeline for communities facing record heat waves, terrifying storms and devastating floods. Rich countries should stop pumping up their numbers with loans that will be repaid and start increasing grants, especially for the most vulnerable countries to use for adaptation.
Notes to Editors:
Oxfam spokespersons are available for interviews. Contact Tania Corbett on +44 (0) 7824 824359 / [email protected]
Climate finance is money provided by developed countries to developing countries as an obligation under the UNFCCC because of their carbon emissions responsibility and ability to pay.
Last month, Oxfam released its Shadow report on climate finance 2020, which also assessed the latest donor-reported figures for 2017 and 2018. He estimated the real value of climate action support after loan repayments, interest and other forms of over-reporting are taken. account was only a third of that reported by donors. ($ 19-22.5 billion per year in 2017 and 2018).
The OECD report does not provide an estimate of total non-concessional finance, but Oxfam estimates that it is consistent with our previous estimate that it accounted for 40% of public climate finance in 2017-18 ($ 24 billion ). The terms of this financing are not disclosed, but some of them include loans at market rates.
The OECD report Climate finance provided and mobilized by developed countries in 2013-18 stipulate that:
- In 2018, loans accounted for 74% ($ 46.3 billion) of public climate finance, up from $ 19.8 billion in 2013. Grants represented only 20% ($ 12.3 billion) of public climate finance .
- In 2018, only 21% ($ 16.18 billion) of all climate finance provided and mobilized was for adaptation, 70% for mitigation ($ 55 billion) and 9% was cross-cutting (7.1 billions of dollars).
- In 2016-18, only 14% of climate finance provided and mobilized went to least developed countries and 2% to small island developing states. The proportion of financing provided in the form of loans was 66% and 50% respectively.