Emerging and developing countries receive only 17% of global climate finance

This article was originally published in on our LinkedIn.

By The Global South House

In 2024, philanthropic giving aimed at climate change mitigation surpassed 2% of all global giving for the first time, reaching as much as US$18.4 billion, according to the sixth edition of ClimateWorks Foundation’s Report on Funding Trends in Climate Change Mitigation Philanthropy. Philanthropic foundations alone accounted for approximately US$6 billion of this total, a 30% increase from the previous year and more than double the amount recorded in 2020.

While these figures indicate that climate action has gained ground within philanthropy, the report reveals the other side of the equation: approximately 70% of regional philanthropic funding remains concentrated in the United States and Europe.

When climate finance is considered as a whole, the imbalance is even more striking. An article by Iago Montalvão, published in the journal Tempo do Mundo by the Institute for Applied Economic Research (Ipea), indicates that emerging and developing economies (excluding China) received only 17% of global climate finance in 2022, equivalent to US$244 billion. Beyond the disparity in funding volumes, there is also a distortion in priorities: 68% of the resources directed to these countries went to mitigation sectors, such as energy and transport, while only 5% went to climate adaptation.

These figures underscore the need to restructure the distribution, accessibility and governance of resources, aligning funding with the needs of the countries that make up the Global South.

There are openings for change. Between 2023 and 2024, according to the ClimateWorks Foundation report, foundation funding for mitigation in Brazil grew by 30%, reaching US$105 million—the same growth rate recorded across the African continent. Strategies focused on people and communities increased by 48%, reaching US$755 million.

However, this expansion raises fundamental questions: How does money reach the frontlines? Who sets investment priorities? How much power is actually transferred to those experiencing the crisis and building the solutions?

The Global South House is bringing these questions to Climate Week NYC in New York and the WINGSForum in Montréal, addressing this imbalance. These spaces bring together actors who influence philanthropic decisions and international capital flows.

Solutions to the climate crisis are already taking shape in territories, built by Indigenous Peoples, traditional communities, social movements, women and young people from marginalized communities. Socio-environmental justice funds in the Global South provide a direct bridge to these territories, reducing bureaucracy and operating on the basis of trust and shared responsibility. Yet they remain underrepresented in global decision-making structures.

Reforming the architecture of climate finance is a collective and global task, driven by alliances among philanthropic and financial actors, governments, civil society and people. The Global South House engages in international forums to ensure that leadership, resources and decision-making power are where life happens: in the territories.