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Climate Finance Favors Wealthy Nations Over Poorest Countries
14 Nov
Summary
- Only 1/5 of climate funds went to world's 44 poorest countries
- Loans make up majority of climate finance for some poor nations
- Wealthy petrostates and China receive large sums of climate aid
An investigation by the Guardian and Carbon Brief has uncovered concerning disparities in the distribution of global climate finance. According to the analysis of data submitted to the UN and the OECD, only about 20% of climate funds in 2021 and 2022 were directed to the world's 44 poorest countries, known as the Least Developed Countries (LDCs).
Much of this limited funding for LDCs came in the form of loans rather than grants, further burdening these debt-distressed nations. In some cases, loans made up 95% or more of the climate finance received by countries like Bangladesh and Angola.
In contrast, wealthy nations like China, Saudi Arabia, and the United Arab Emirates received substantial sums of climate aid, raising questions about the fairness and strategic allocation of these critical resources. The analysis also found that several Balkan countries set to join the EU received far more climate finance per capita than the LDCs.
