Development finance for climate

Recipient countries receive climate-related development finance from bilateral, multilateral and philanthropic providers. The data showcased in these charts include activities that list climate change mitigation or adaptation as the principal (main) or significant (secondary) objective, as identified through the Rio markers. Activities with a climate component, as identified in the multilateral development banks’ (MDBs) joint tracking methodology, are also included. 

Total climate-related development finance from all providers showed an overall upward trend in the last decade. MDB activities with climate components make up a large portion of this finance. 

Climate-related development finance is used to support climate mitigation or adaptation, or both simultaneously (“cross-cutting”). In recent years, support for mitigation activities has exceeded support for adaptation activities and activities targeting both objectives, although trends vary across individual countries. 

Development finance can support climate action across different sectors. Each sector has varying mitigation potential and climate resilience needs. Finance for mitigation efforts is typically concentrated in productive or infrastructural sectors (e.g. transport or energy), while finance for adaptation is spread across many sectors.

For many countries, a few providers represent an significant share of the development finance received for climate change. This chart presents the largest providers for each recipient country, illustrating potential co-ordination opportunities.  

Private finance mobilised by the international community plays an increasingly significant role to mitigate and adapt to climate change. This chart includes amounts mobilised from the private sector by both bilateral and multilateral providers. Private finance mobilised for climate adaptation remains a small fraction of total climate-related mobilisation, with mitigation continuing to dominate.