Wealthy nations overstated the value of climate finance they provided to low- and middle-income countries by as much as $100 billion in 2024, a new study by Oxfam has suggested.
This is higher than the $88 billion by which climate finance was overstated in 2022, it noted.
“Once again, the richest and most polluting countries are inflating the value of the climate finance they provide, creating the illusion of solidarity while delivering far less than they claim,” commented Oxfam climate policy lead Mariana Paoli.
“Instead of helping poorer countries withstand a crisis they did little to cause, rich countries are pushing them deeper into debt through loans, many offered on profitable commercial terms. It is a cruel irony: those most responsible pay less —and even make a profit— while those least responsible pay more.”
Climate finance
According to Oxfam’s analysis, governments reported mobilising close to $137 billion in climate finance in 2024, to assist countries in the Global South with emissions reduction and climate mitigation measures.
While $106 billion of this reported amount was provided as public finance, around two thirds (65%, or $69 billion, was delivered in the form of loans, many of which were provided on market terms.
As a result, the ‘true value’ of rich countries’ climate finance support was between $33 billion and $45 billion, equivalent to no more than one third of the reported amount, Oxfam said. Between $15 and $18 billion of that was allotted to adaptation, it added.
‘Accounting tricks’
“What is needed is public, grant-based climate finance at the scale the climate crisis demands – not accounting tricks, not loans that worsen debt, and not empty promises,” Paoli added.
“Grants are lifelines that enable countries to adapt to a changing climate, cut emissions, protect lives, and respond to devastating loss and damage. At COP31, rich countries need to drastically increase grant-based climate finance and finally deliver on the commitments they have made.”
According to the UNEP Adaptation Gap Report 2025, adaptation finance needs in low- and middle-income countries will reach between $310 billion and $365 billion annually by 2035. Read more here.
