After a year of record-breaking extreme events, from devastating floods in Pakistan and the United States to unprecedented heat waves across Europe, Asia, and Africa, it is clear that governments around the world face a hefty bill to tackle the impacts of climate change. Finance for reparations and risk preparedness is expected to be high on the agenda at the upcoming 27th United Nations Climate Change Conference, or COP 27, in Egypt.
The latest available data show that even before the COVID-19 pandemic and the war in Ukraine shook the global economy, growth in available climate finance had already slowed over the past ten years. This trend is likely to affect low- and middle-income countries the most, as their ability to withstand the worst impacts of climate change depends on funding to upgrade their infrastructure and mitigate their present and future carbon footprints.
But how much finance is actually being provided? How much is needed? Where is it being spent, and on what? And is as much being spent on this issue as high-income countries say?