A clearer picture of climate-related development finance
Today’s post is by Stephanie Ockenden of the OECD Development Co-operation Directorate
The world will need more and better targeted financing to meet the challenges of global development post-2015. This means taking important decisions not only on what qualifies as official development assistance (ODA), but also on how those flows can be most strategically used. The Ministers of the OECD Development Assistance Committee (DAC) are in discussions today and tomorrow at the DAC High Level Meeting to redefine the terms for determining what qualifies as ODA.
But these terms are just part of that package of what the DAC is putting together to contribute to successful outcomes at the Third International Conference on Financing for Development in Addis Ababa, 13-16 July 2015, the UN General Assembly Post-Millennium Development Goals (MDG) Review Summit in New York in September 2015, and the United Nations Climate Conference (COP21) in Paris in December 2015.
An equally important objective is to provide a better picture of the total resources available for global sustainable development, including for action on climate change. It is now widely understood that climate change and development are intrinsically linked. Achieving an efficient and effective allocation of public finance to simultaneously support good development and climate change outcomes will be critical to ensuring that the most vulnerable get the targeted attention they need.
Robust statistics on climate-related development finance can facilitate better decision making, in part through improved co-ordination and priority setting. Consistent, comparable and transparent statistics on climate-related development finance will, in turn, support parties in their monitoring and reporting to deliver greater accountability and help build trust under the UN Framework Convention on Climate Change.
As an important step in this direction, the DAC, in collaboration with the multilateral development banks and other international organisations, has presented – for the first time ever – an integrated picture of bilateral and multilateral development finance flows targeting climate change objectives in 2013.
By adding data on the multilateral flows, the DAC promotes transparency and makes a wealth of data publically available online, including information on over 7,000 development finance activities in 2013, contributing to over USD 37 billion of climate-related development finance.
Energy, transport and water received over two-thirds of climate-related development finance, according to the statistics. On the regional level, Asia is the largest recipient of climate-related development flows, at around 40%, and Africa is the second largest, at 30%. The data show that in 2013, adaptation receives a significant share of total climate-related flows (39% when activities that are designed to tackle both mitigation and adaptation are included). Measured in the same way, mitigation receives 74% of the total flows (with 13% also targeting adaptation). A larger share of the bilateral development assistance portfolio is dedicated to adaptation, as compared to the multilateral portfolio.
Among other advantages, this integrated dataset avoids double counting and provides consistency across countries using standardized definitions and measurements. Going forward, the DAC will continue to work in collaboration with other partners to further improve the quality, coverage, communication and use of environmental development data.
This video explains the treatment of multilateral climate-related flows in DAC statistics:
Increasing the transparency of climate-related development finance flows: publishing detail on over 7,000 projects in 2013 Stephanie Ockenden on the Climate Funds Update blog