A relatively small proportion of the finance goes towards efforts towards enabling the most vulnerable to adapt.
This fact came to light on Friday at the Summary and Recommendations on the 2018 biennial assessment and overview of climate finance flows of the Standing Committee on Finance. It showed that on a comparable basis, the global climate finance flows increased by 17% in 2015-16, as compared to 2013-14 levels.
A general conclusion was made that the growth in global climate finance seen in 2015 was largely driven by high levels of new private investment in renewable energy, the largest segment of the global total. The fall in renewable energy investment in 2016 was offset by an 8% increase in investment in energy efficiency.
Climate-related finance flows remain considerable, yet still relatively small in the context of wider trends in global investment. For example, while global investment in renewable energy and renewable energy subsidies are rising, global investment in fossil fuel and fossil fuel subsidies remain considerably higher.
Another central finding is that climate finance to developing countries, as reported in developed countries biennial reports to the United Nations Framework Convention on Climate Change (UNFCCC), increased by 24% in 2015 to $33bn and, subsequently, by 14% in 2016 to $38bn.
Other key findings relate to the efforts of multilateral development banks that continue to scale up climate finance flows; flows through UNFCCC funds, and multilateral climate funds that are increasing — although their share of global climate finance flows remains small. Ownership remains a critical factor in the delivery of effective climate finance. Significant data gaps in tracking climate finance flow at a domestic level still prevail.
The Standing Committee on Finance is the central body that supports the Conference of the Parties with respect to climate finance matters.