Philanthropic funding for efforts to reduce or avoid the worst impacts of climate change have increased for some sectors and in some key parts of the world, such as Africa. However, it needs to ramp up much faster if funders want to meet the growing needs of a warming planet and an escalating number of climate disasters affecting low- and middle-income communities, climate philanthropy experts said.
ClimateWorks Foundation published its latest annual funding trends report on Wednesday. The United States-based nonprofit tracks climate mitigation spending worldwide and is funded by foundations such as Bezos Earth Fund, Children’s Investment Fund Foundation, and Open Philanthropy. Its latest data shows climate mitigation received an estimated $7.8 billion to $12.8 billion of the total $811 billion in global giving last year.
Key targets for climate mitigation spending include work to reduce emissions in the shipping industry. Foundation giving to the sector has more than tripled since 2018, reaching $16 million last year, the report said. Funding to reduce emissions in the building and construction sector also grew from $65 million in 2018 to $155 million in 2022. Funding for corporate accountability efforts also has steadily increased in recent years and represented 4% of foundation giving in 2022. And foundations spent about $35 million on efforts to obtain minerals needed to produce renewable energy.