Climate finance hits $136.7 billion in 2024, according to the latest OECD report on climate finance provided and mobilized by developed countries for developing nations. This marks the third consecutive year that developed economies surpassed the long-delayed $100 billion annual climate finance goal, which was originally due by 2020. The total rose from $132.8 billion in 2023 to $136.7 billion in 2024, a modest 2% increase.

While the headline figure shows progress, the distribution of finance remains a major concern. Low-income countries received only 7% of total climate finance, despite being among the most vulnerable to climate disasters.

Climate Finance Grows, But Unevenly

Public climate finance remained the backbone of the total, accounting for nearly three-quarters of flows in 2023 and 2024. Multilateral public climate finance increased steadily, reaching $57.7 billion in 2024, while bilateral public climate finance fell by $6.3 billion, or 12%, after a sharp rise in 2023.

Private finance mobilization saw its biggest annual increase so far. It rose by $7.6 billion, or 33%, to reach $30.5 billion in 2024. Multilateral development banks played a major role, with private finance mobilization increasing from $14.3 billion in 2023 to $17.4 billion in 2024.

Adaptation Finance Still Falls Short

Adaptation finance reached $34.7 billion in 2024, only slightly higher than $33.6 billion in 2023. The OECD said developed countries would need to increase adaptation finance by another $5.8 billion, or 18%, in 2025 to meet the Glasgow Climate Pact commitment to double adaptation finance from 2019 levels.

This gap matters because vulnerable countries need funding for flood protection, drought resilience, water systems, agriculture, health infrastructure, and disaster risk reduction. However, adaptation projects often attract less private investment because they are harder to monetize than clean energy or mitigation projects.

Key Concerns

Key concerns include:

• Low-income nations are underserved: They received only 7% of total climate finance.
• Private finance gap: Only 3% of mobilized private finance went to low-income countries.
• Loans dominate: Loans accounted for 67%, or $68.5 billion, of public climate finance.
• Grants remain limited: Grants made up 29%, or $29.7 billion, of public finance.
• Mitigation dominates: Mitigation finance reached $86.9 billion, nearly two-thirds of total flows.

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Trust Gap Remains for Developing Nations

Although developed countries have now crossed the old $100 billion target as climate finance hits $136.7 billion in 2024, the delay continues to affect trust. The goal was met two years late, and experts argue that the amount remains small compared with the new climate finance expectations.

At COP29 in Baku, countries agreed on a new climate finance framework. The New Collective Quantified Goal calls for scaling finance for developing countries to at least $1.3 trillion annually by 2035, including at least $300 billion per year led by developed countries.

The challenge is no longer only about reaching old targets. The bigger question is whether future finance will be timely, fair, and accessible. If low-income and climate-vulnerable nations continue receiving a small share, the global climate finance system may grow in size but still fail where it is needed most.

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