Access to international financing for climate and health-related initiatives remains challenging for developing and low-income countries, a new report from the Sanofi Collective, Reaching the Last Mile, and The Rockefeller Foundation has found.
International financing for climate and health reached $7.1 billion in 2022, a significant increase from under $1 billion in 2018, the report, Resourcing Climate and Health Priorities: A Mapping of International Finance Flows from 2018–2022, noted.
However, despite this progress, countries most affected by climate change still find it difficult to access these funds, with less than 35% of bilateral donor financing and under 50% of total funding reaching low-income nations.
‘Falls far short’
“While the increase in financing for climate and health projects is a promising step in the right direction, the overall amount of funding still falls far short of what is needed to protect lives and livelihoods from the devastating impacts of climate change,” commented Dr. Naveen Rao, senior vice president, health, The Rockefeller Foundation.
“Donors from the public, private, and philanthropic sectors must increase their commitments to climate and health, while also making sure that funding reaches the communities that need it most.”
As the report, which was conducted by SEEK Development in partnership with adelphi consult and AfriCatalyst, found, while bilateral donors have increased their focus on climate considerations within health investments, much of this funding is still provided as loans rather than grants – as much as 24% in 2022.
More than 90% of climate and health funding from MDBs, including the Asian Development Bank and Inter-American Development Bank, was provided as loans.
Access to funding
“Countries on the frontlines of climate change urgently need more accessible financing to protect their population’s health,” added Vanina Laurent-Ledru, director general, Foundation S. “Business as usual is no longer an option; public, private, and philanthropic collaborations can help to fast track flexible finance directly to local communities so they can urgently build climate-resilient health systems.”
In addition, challenges related to transparency further complicate matters – as it noted, a lack of standardised definitions and methodologies among donors, combined with fragmented and labour-intensive financing processes, has led to frontline countries finding it difficult to secure and implement large-scale climate and health investments.
The report calls for urgent action to increase funding for climate and health solutions, align investment priorities to maximise impact, and streamline access to financing for high-impact interventions.
“Well-financed climate action is an opportunity to transform countries and economies and achieve health and wellbeing for all,” said Nassar Al Mubarak, CEO, Reaching the Last Mile. “As the report demonstrates, now is the time to invest in more ambitious, coordinated and accessible funding, delivered where it is needed most.” Read more here.
