3 December 2014: The UNFCCC Standing Committee on Finance (SCF) has released a compilation of information and data on financial flows supporting mitigation and adaptation within countries and via international support. The assessment estimates a lower range of global total climate finance flows of US$340 billion a year for the period 2011-2012 and an upper range of at least US$650 billion.

The SCF presented the ‘2014 Biennial Assessment and Overview of Climate Finance Flows’ assessment to governments at the Lima Climate Change Conference. The report describes between US$35 and US$50 billion annually in support from developed to developing countries. Multilateral development banks (MDBs), climate-related official development assistance (ODA) and other official flows constitute a significant share of resources channeled through public institutions. Funding through multilateral climate funds represent a smaller share, which is set to increase given recent Green Climate Fund (GCF) pledges.

The assessment acknowledges relative uncertainty in global figures due in part to data gaps; however, efforts are being undertaken to improve the quality of measurement and reporting of climate finance flows. The assessment provides recommendations to the 20th Conference of the Parties (COP 20) to the UNFCCC, including on strengthening transparency and accuracy of information on climate finance flows by ensuring better measurement, reporting and verification (MRV) and agreeing on a definition for climate finance.

UNFCCC Executive Secretary Christiana Figueres said understanding how much is flowing from public and private sources, how much is leveraging further investments and how much is reaching the most vulnerable is “vital for ensuring we are adequately financing a global transformation.” She said the assessment provides a foundation upon which future assessments and “more importantly future climate action can be refined and focused.”

The assessment also highlights that, inter alia, around 95% of total climate finance is spent on mitigation and 5% on adaptation; oil and gas subsidies and investments in fossil fuel-fired generation are almost double the amount targeted towards addressing climate change; and 48% to 78% of finance is reported as fast-start finance (2010-2012).

The SCF aims to enhance transparency and clarity on climate finance flows. A range of experts and contributing organizations that collect data on climate finance flows contributed to the assessment. [UNFCCC Press Release] [Publication: 2014 Biennial Assessment and Overview of Climate Finance Flows] [Summary of Recommendations of the SCF on the 2014 Biennial Assessment and Overview of Climate Finance Flows] [Assessment Website] [IISD RS Coverage of Lima Climate Change Conference]