Rich countries risk missing their goal to provide $100 billion a-year by 2020 to help poorer nations combat climate change, after funding slowed in the year since President Donald Trump vowed to pull the U.S. out of the global Paris deal. Climate finance from developed countries reached $78.9 billion in 2018, far short of the target agreed in 2015 by 197 countries as part of the Paris Agreement, according to a OECD study published Friday. Even though climate finance rose 11% in 2018 from $71.2 billion in 2017, it was at a slower growth rate than seen in 2016 to 2017.

Climate Finance Progress

Rich countries pledged $100 billion a year by 2020 to help poorer nations tackle global warming

Source: OECD

Efforts have also been derailed by Trump’s decision to halt $2 billion of payments to the United Nations’ Green Climate Fund, the world’s largest international finance effort dedicated to addressing climate change. The U.S. had previously been one of the biggest climate donors before Trump took office.

KEY NUMBERS FROM THE RESEARCH:
  • The level of private climate finance mobilized was virtually flat in 2018, at $14.6 billion
  • More than a third of total climate funds from 2016-18 was for energy, while 14% went to transport and storage
  • Asia benefited from 43% the of total between 2016 and 2018, while Africa got 25% and the Americas 17%

Early 2019 data from the European Union and its member states, who provide the biggest chunk of money, shows direct country-to-country climate finance may have continued to increase last year, the OECD said, providing some signs that the target remains in sight. Countries are increasingly choosing loans over grants to provide climate finance. Between 2013 and 2018, the share of loans in total public finance provided grew from 52% to 74%, while the share of grants saw a decline, the report said.