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Data source: Federal Ministry for Economic Cooperation and Development

Note: Adjustment of the target year and value of four billion euros by 2020 in accordance with the 2022 policy decision.

This table includes additional information to the above visualized indicators, i.e. a short definition of this indicator and a description of the politically determined target values as well as explaining the political intention behind selecting this indicator.

Definition

This indicator covers the financing of measures to reduce greenhouse gases, adapt to climate change and/or take climate-related action to preserve biodiversity and protect forests (specifically, projects for the conservation and sustainable management of forests as well as reforestation within the REDD+ framework). The measures chiefly take place in developing and emerging countries and are financed using German budget funds (including grant elements of development loans since 2017).

Target and intention

The Federal Government’s aim is to raise its contribution to international climate finance to 6 billion euros1 from public funds and grant elements of development loans by 2025, thereby trebling the target value for 2014, which was 2 billion euros. In the decisions contained in the Addendum to the Paris Agreement, the industrialised countries reaffirmed their 2009 commitment to collectively provide 100 billion US-dollar from public funds and from private sources mobilised by public funds, every year from 2020 to 2025, for mitigation and adaptation to climate change in developing countries.

1Adjustment of the target year and target value from 4 billion euros by 2020 according to policy resolution 2022.

Data status

The data published in the indicator report 2022 is as of 31 October 2022. The data shown on this platform is updated regularly, so that more current data may be available online than published in the indicator report 2022.

Text from the Indicator Report 2022 

The data for this indicator is derived from reporting carried out under the EU Regulation on a mechanism for monitoring greenhouse gases. The source of the annually collected data is the Federal Ministry for Economic Cooperation and Development, which also reports in this context on climate finance from other federal ministries. In the case of bilateral climate finance, expenditure is calculated on the basis of funds allocated; in the case of multilateral climate finance and contributions to energy and climate funds, it is calculated on the basis of funds actually paid. The indicator also includes climate finance that is attributed to donors pro rata on the basis of their contributions to multilateral funds managed by development banks. As climate finance primarily benefits developing countries, it is considered to be part of official development expenditure (see indicator 17.1 “Official development assistance as a proportion of gross national income”).

In 2021, Germany committed or provided 5.34 billion euros in public funds for international climate finance for the reduction of greenhouse gases and adaptation to climate change. Compared with the previous year, when climate finance amounted to 5.09 billion euros, this represents an increase of 4.9 %. The target for 2025 – to reach 6 billion euros – will most likely be achieved if the development continues. The previous target – to reach 4 billion euros by 2020 – was already achieved in 2019 at 4.34 billion euros. In 2021, 36 % of climate finance went to fund projects to reduce emissions, while 33 % went towards adaptation to climate change. The remaining 30 % was used to finance horizontal measures. As the horizontal measures serve both the reduction and adaptation efforts, the final split in 2021, as in previous years, shows more funds being used for emissions reduction (51 %) than for adaptation (49 %).

18 % of climate finance, or 971 million euros, was provided through multilateral channels in 2021. 268 million euros of that can be attributed to Germany on the basis of the climate-related shares of Germany’s contributions to multilateral development banks, the Global Environment Facility and the International Fund for Agricultural Development. Germany provides the remaining 703 million euros through multilateral institutions and contributions to international climate funds.

In addition to official climate finance from public funds, Kreditanstalt für Wiederaufbau (KfW) and DEG (Deutsche Investitions- und Entwicklungsgesellschaft) also provide climate-related loans with funds from the market. These represent mobilised public climate finance and are not included in the indicator. In 2021, the resources mobilised in this way amounted to approximately 2.59 billion euros, compared with 2.55 billion euros the previous year. Here too, more funding went towards emissions reduction (58 %) than adaptation (42 %).

The synoptic table provides information about the evaluation of the indicator in previous years. It shows if the weather symbol assigned to an indicator was rather stable or volatile in the past years. (Evaluation of the Indicator Report 2022 )

Indicator

13.1.b International climate finance for the reduction of greenhouse gases and adaptation to climate change

Target

Increase international climate finance to at least 6 billion euros by 2025 at the latest

Year

2021

Evaluation <p>Sonne</p>