An analysis by The Guardian and Carbon Brief reveals that countries such as China, Saudi Arabia, and the UAE received substantial climate finance, highlighting ongoing financial dynamics in global climate funding. The report, based on submissions to the UN and data from the OECD, indicates that significant amounts of public resources are being allocated to combat climate change and assist nations in adapting to its impacts.
The findings illustrate a functional financial system that transfers capital from wealthier nations to developing countries, facilitating efforts to transition to cleaner economies. However, the absence of central oversight has resulted in the distribution of funds being influenced by political motivations, leading to instances where financial support is not directed to areas of greatest need.
While extensive data is lacking to fully track all funding recipients, the analysis indicates that about 20% of climate finance during 2021 and 2022 was directed to the world’s 44 least developed countries (LDCs), with much of this assistance structured as loans rather than grants. In several cases, countries such as Bangladesh and Angola received loans making up over 95% of their climate funding, raising concerns about potential debt burdens.
Approximately $33 billion was committed to LDCs over the two years, including countries like Haiti and South Sudan. However, a larger total of about $98 billion went to developing countries, including upper and lower middle-income nations like India and China. India emerged as the top recipient with about $14 billion, while China received $3 billion primarily from multilateral banks.
The analysis highlights growing tensions in climate negotiations regarding the classification of nations. Critics argue that countries like China, which has seen economic growth since being categorized as developing in the 1990s, benefit disproportionately from climate finance, raising questions about the fairness and efficacy of current categorizations. Reforming climate finance delivery to prioritize accessibility and affordability for poorer nations is also emphasized, with calls for a shift in the global financial system to better meet the needs of vulnerable communities.
Source: https://www.theguardian.com/global-development/2025/nov/14/china-and-saudi-arabia-among-nations-receiving-climate-loans-analysis-reveals