Understanding Global Concessional Climate Finance 2024

The report finds that international concessional climate finance grew by 50% from 2019 to reach USD 81 billion in 2022, though it remains small compared to fossil fuel subsidies. Sub-Saharan Africa is the primary recipient of these flows. The analysis highlights a gap in adaptation finance and a lack of standardized impact metrics. Domestic concessional finance is heavily concentrated in high-income economies, particularly Western Europe, and focuses primarily on mitigation. The report recommends redirecting fossil fuel subsidies, targeting fragile and conflict-affected states, and streamlining project approval processes to enhance efficiency.

• International concessional climate finance grew by approximately 50% between 2019 and 2022, totaling USD 81 billion in 2022.
• Concessional climate finance is significantly lower than funding for fossil fuels; fossil fuel subsidies were USD 1.3 trillion in 2022, and international public funding for fossil fuels was at least USD 47 billion annually from 2020 to 2022.
• Bilateral development finance institutions (DFIs) were the largest providers of international concessional climate finance (33%), followed by multilateral DFIs (30%) and governments (26%).
• Sub-Saharan Africa received the largest share of international concessional climate finance at 30%, followed by South Asia and Latin America and the Caribbean at 16% each.
• Least-developed countries (LDCs) received about 33% (USD 21 billion annual average) of total international concessional climate finance, with over half provided as grants.
• International concessional climate finance is distributed across mitigation (42%), adaptation and resilience (36%), and dual-objective activities (22%).
• There is a significant disparity in project ticket sizes between instruments: the median grant per project was USD 300 thousand, while low-cost debt had a median ticket size of USD 30 million.
• Domestic concessional climate finance reached USD 82 billion in 2022 and is highly concentrated in high-income countries, with 96% located in Western Europe.
• Domestic concessional finance focuses almost exclusively on mitigation, with 90% targeting buildings and infrastructure, transport, and energy systems.
• Countries affected by fragility and conflict, such as Myanmar, Burkina Faso, Niger, and Sudan, saw stark decreases in international concessional climate finance between 2019 and 2022.

APA

Naran, B., Zhang, T., & Gupta, I. (2024). Understanding Global Concessional Climate Finance 2024. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Understanding-Global-Concessional-Climate-Finance-2024.pdf

Chicago

Naran, Baysa, Tinglu Zhang, and Ishrita Gupta. Understanding Global Concessional Climate Finance 2024. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Understanding-Global-Concessional-Climate-Finance-2024.pdf.

Wikipedia

{{cite report |last1=Naran |first1=Baysa |last2=Zhang |first2=Tinglu |last3=Gupta |first3=Ishrita |title=Understanding Global Concessional Climate Finance 2024 |publisher=Climate Policy Initiative |date=October 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Understanding-Global-Concessional-Climate-Finance-2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{naran2024understanding, author = {Naran, Baysa and Zhang, Tinglu and Gupta, Ishrita}, title = {{Understanding Global Concessional Climate Finance 2024}}, institution = {Climate Policy Initiative}, year = {2024}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Understanding-Global-Concessional-Climate-Finance-2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }