Reaching the Last Mile, the Rockefeller Foundation and Foundation S – the Sanofi Collective have published Resourcing Climate and Health Priorities: A Mapping of International Finance Flows from 2018-2022, at the 55th Annual Meeting of the World Economic Forum being held in Davos.
The first-of-its-kind analysis of international finance for climate and health highlighted that US$7.1 billion was committed to the climate and health nexus in 2022, a significant increase from the less than US$1 billion committed in 2018. The analysis found that financing is not sufficiently reaching countries most impacted by climate change, as less than 35 per cent of finance from bilateral donors is channelled directly to countries, and less than 50 per cent of overall funding analysed flowed to low-income countries.
The analysis defines climate and health finance as international concessional financing for projects in and out of the health sector that address the direct health impacts of climate change, support the health sector to adapt to and mitigate climate change, and/or generate health co-benefits from climate action.
With increased political support for climate and health through the Group of 20, Conference of the Parties, and World Health Assembly, donors have increased contributions towards projects at the intersection of climate and health. In 2022, this financing included: US$4.8 billion in commitments from bilateral donors; US$1.5 billion in commitments from two health multilateral funds; US$0.6 billion in commitments from four multilateral development banks; US$130 million in commitments from philanthropies; and US$23 million in commitments from multiple climate multilateral funds.
The report also found that bilateral donors are increasingly making health investments that include climate considerations. The share of climate finance directed to the health sector increased from one per cent in 2018 to nine per cent in 2022. However, 24 per cent of the available funding in 2022 was provided as loans rather than grants. Additionally, more than 90 per cent of Asian Development Bank and Inter-American Development Bank’s total funding for climate and health financing was provided as loans.
Nassar Al Mubarak, CEO, Reaching the Last Mile, said: “Well-financed climate action is an opportunity to transform countries and economies and achieve health and wellbeing for all. As the report demonstrates, now is the time to invest in more ambitious, coordinated and accessible funding, delivered where it is needed most.”
Dr Naveen Rao, Senior Vice President, Health, The Rockefeller Foundation, said: “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. 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.”
Vanina Laurent-Ledru, Director General, Foundation S, said: “Countries on the frontlines of climate change urgently need more accessible financing to protect their population’s health. 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.”
There are several limitations to the analysis that reflect the challenges in transparency and clarity countries face in accessing financing. Donor data on climate and health commitments are self-reported and use different definitions of climate and health. The lack of standardised data on finance flows from disparate funders and sectors also limit the comparison across finance categories. While recognising these limitations, the report presents its data as an initial overview of the funding landscape, providing a baseline understanding to strengthen financing for climate and health.
The report calls on donors, civil society, academia, and policymakers to support countries in accessing needed financing through the following actions: increase funding available for climate and health; align investment priorities and frameworks to maximise impact; accelerate delivery and improve access to funding; channel funding to country priorities; and standardise definitions and increase transparency.
