NOTE: Germany has reported only semi-aggregated data for part of the BMZ data for this release (approximately EUR4 billion), due to an internal transition of their IT systems. Granular data on recipients, sectors, and policy markers were not available for submission to the OECD at the time of publication. Therefore, any data including Germany is preliminary.

How is ODA to climate projects evolving?

Bilateral allocable ODA for climate adaptation and mitigation surged from US$38.9 billion in 2021 to a peak of US$58.6 billion in 2022, representing a 51% increase, before declining to US$47.6 billion in 2024. ODA with climate change as a principal objective rose sharply from US$14.6 billion in 2021 to US$31.6 billion in 2023, then fell to US$18.3 billion in 2024. Climate funding's share of total bilateral allocable ODA peaked at 36% in 2023 and remained elevated at 32% in 2024, up from 26% in 2021.

Who are the top donors to climate issues?

The US dominated climate ODA in absolute terms, contributing US$46.2 billion, followed by Germany at US$17.7 billion and Japan at US$14.3 billion. Korea and France demonstrated the strongest prioritization of climate action, each allocating 61% of their total bilateral allocable ODA to climate adaptation and mitigation, followed by Japan at 48% and New Zealand at 47%. Among other major donors, Germany and the UK allocated 41% of their bilateral allocable ODA to climate.

What are the key debates and topics surrounding climate finance?

Reform of the international financial architecture, including fulfilling past financial commitments, optimizing existing financing mechanisms, and mobilizing new sources of innovative financing, is seen by many low- and middle-income countries as going hand-in-hand with better climate action and more climate financing.

Increased engagement of the private sector in climate finance presents a unique opportunity to drive investment, foster innovation, and build thriving markets in clean energy, sustainable transport, green infrastructure, and climate-resilient agriculture. However, private climate finance investments have been slow to materialize. Climate advocates have called for the implementation of policies making climate investments more attractive, and for public institutions, development banks, and climate funds to de-risk private investments by taking on early-stage risks, funding infrastructure, and supporting climate projects.

The need for adequate climate finance remains one of the most pressing and contested issues in international climate and development policy. The NCQG, adopted at COP29, replaced the long-standing US$100 billion annual target, marking a significant, if overdue, step forward in global climate ambition. However, the US$300 billion NCQG annual target fell well short of the US$1.3 billion annual figure called for by many emerging economies, leaving a substantial gap between pledged support and actual need. The shortfall is becoming increasingly critical in an already challenging global context, with geopolitical tensions mounting, ODA from traditional donors declining, and national interest increasingly taking precedence over multilateral commitments. COP30, held in Brazil at the end of 2025 and widely referred to as the ":abbrCOP of truth," marking ten years since the signing of the Paris Agreement, brought the tensions to the fore, with emerging economies in particular underscoring the urgency and scale of unmet climate financing needs.

Meaningful steps are being taken to strengthen climate finance for adaptation, though significant work remains. At COP30, parties agreed to triple finance for climate adaptation by 2035, a commitment housed within the broader NCQG framework, signalling a welcome shift in momentum. Parties also agreed on a set of indicators for the GGA, offering a foundation for more structured and measurable progress. However, ambiguity persists: the precise target for adaptation finance within the NCQG remains undefined. With adaptation needs growing in urgency, particularly for the most vulnerable countries, the pressure to move from aspiration to action continues to grow.

The climate-trade nexus has come to the fore in climate debates globally. COP30 officially addressed trade for the first time, with the final "Global Mutirão" decision addressing concerns that unilateral climate measures, including for example the EU's CBAM and deforestation regulations, should not be arbitrary, discriminatory, or disguise trade restrictions, but rather should be transparent and supportive of emerging economies' sustainable development pathways.