New Analysis: International Finance for Climate and Health Increased to US$7.1 Billion in 2022, but Financing Remains Difficult to Access for the Most Climate-Impacted Countries

Data provides the most comprehensive analysis to date of self-reported donor financing, providing a critical baseline to strengthen climate and health action

DAVOS-KLOSTERS, SWITZERLAND | January 21, 2025 ― Today, at the 55^th Annual Meeting of the World Economic Forum, Foundation S – the Sanofi Collective, Reaching the Last Mile, and The Rockefeller Foundation released a first-of-its-kind analysis of international finance for climate and health. The white paper, Resourcing Climate and Health Priorities: A Mapping of International Finance Flows from 2018-2022, finds 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. While this demonstrates increasing prioritization of climate and health among leading finance partners, the financing is not sufficiently reaching countries most impacted by climate change: less than 35% of finance from bilateral donors is channeled directly to countries, and less than 50% of overall funding analyzed flowed to low-income countries.

“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,” said Dr. Naveen Rao, Senior Vice President, Health, The Rockefeller Foundation. “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.”

The analysis, conducted by SEEK Development in partnership with adelphi consult and AfriCatalyst, 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 stepped up their efforts to make financing available for 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
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 1% in 2018 to 9% in 2022. However, 24% of the available funding in 2022 was provided as loans rather than grants. Additionally, more than 90% of Asian Development Bank and Inter-American Development Bank’s total funding for climate and health financing was provided as loans.

“Countries on the frontlines of climate change urgently need more accessible financing to protect their population’s health,” said Vanina Laurent-Ledru, Director General, Foundation S. “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.”

“Well-financed climate action is an opportunity to transform countries and economies and achieve health and wellbeing for all,” said Nassar Al Mubarak, CEO, Reaching the Last Mile. “As the report demonstrates, now is the time to invest in more ambitious, coordinated and accessible funding, delivered where it is needed most.”

There are several limitations to this analysis that reflect the challenges in transparency and clarity countries face in accessing financing. First, donor data on climate and health commitments are self-reported and use different definitions of climate and health, making it difficult to verify which commitments constitute new financing for climate and health projects rather than reclassifications of tangentially related commitments or projects. And second, the lack of standardized data on finance flows from disparate funders and sectors limits comparison across finance categories. While recognizing these limitations, this report presents its data as an initial overview of the funding landscape, providing a baseline understanding to strengthen financing for climate and health.

Strengthening Global Commitments and Improving Access to Funding

In an era of polycrisis and growing fiscal constraints, countries have limited pathways to fund climate and health priorities. Evidence from the white paper suggests that funding from bilateral donors is likely to stagnate or potentially decrease in the near-term. However, multilateral development banks, along with health and climate multilateral organizations, are increasingly prioritizing climate and health in their strategies, signaling an opportunity to harness that financing to deliver on both climate and health ambitions. Yet even with increased financing opportunities, countries still face challenges accessing resources due to fragmented, complex, laborious finance processes and limited domestic capacity to access finance for large-scale investment.

To address these challenges, 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: Scaling funding for climate and health solutions across sectors is necessary and feasible. Fiscal policy reforms and efforts to reform the global financial architecture can additionally increase finance towards shared climate, health, and development goals.
Align investment priorities and frameworks to maximize impact: Developing a clear, shared understanding of evidence-based high-impact climate and health investment in all sectors will guide funders to allocate more funding to these interventions and support local decision making in prioritizing these actions.
Accelerate delivery and improve access to funding: Funders must simplify and speed up access to finance for proven, high-impact climate and health actions while countries build their funding pipelines for more transformative actions. Clear and publicly available investment priorities, investment volumes, key performance indicators, and application processes can additionally enable access.
Channel funding to country priorities: As country priorities are further defined and updated (e.g., through Nationally Determined Contributions), funders must collaborate and integrate investments to increase impact and reduce country burden. Future finance must emphasize scaling up grant-based finance that does not deepen the debt crisis and undermine the ability of the most impacted countries to invest in health, climate, and economic wellbeing.
Standardize definitions and increase transparency: Funders and normative bodies must align on a clear definition and use a consistent methodology to report their climate, health, and cross-sectoral finance. Transparent reporting will give greater visibility into investments and enable donors, countries, and advocates to track finance against need and close critical gaps.

About the White Paper

As articulated in the COP28 Guiding Principles for Financing Climate and Health Solutions, this report responds to a clear need for baseline financial data on climate and health. Three endorsing organizations of the Guiding Principles ― Foundation S ― the Sanofi Collective, Reaching the Last Mile, and The Rockefeller Foundation ― pooled funds to commission the analysis through RF Catalytic Capital, Inc., which served as the fiscal sponsor of the project. It was developed as a contribution to the Alliance for Transformative Action on Climate and Health (ATACH), which works to realize the ambition set at COP26 to build climate-resilient and sustainable health systems.

The report was developed and produced by SEEK Development in partnership with adelphi consult and AfriCatalyst, with editorial support from Global Health Strategies. More than 50 funding organizations, country governments, implementing organizations, and finance experts contributed to this report through participation in one-on-one interviews, in-person consultations on the sidelines of the 79th UN General Assembly in September 2024 and the World Health Summit 2024, virtual consultations held in November and December 2024, peer review, and the provision of data, insights, and analysis.

About The Rockefeller Foundation

The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation that enable individuals, families, and communities to flourish. We make big bets to promote the well-being of humanity. Today, we are focused on advancing human opportunity and reversing the climate crisis by transforming systems in food, health, energy, and finance. For more information, sign up for our newsletter at www.rockefellerfoundation.org/subscribe and follow us on X @RockefellerFdn and LI @the-rockefeller-foundation.

About Foundation S ― The Sanofi Collective

Foundation S strives to create healthier futures for generations to come. We are driven by a singular purpose: to improve the lives of vulnerable populations by catalyzing community–based solutions, expanding access to medicines, and mobilizing collective action. Since our launch in 2022, we have made bold strides in helping to address some of the biggest global health crises, particularly for those living in low- and middle-income communities. With a focus on four key commitment areas, our vision is to improve the lives of vulnerable people by listening to those on the frontlines, supporting community-based solutions, and strengthening community health resilience for future generations.

About Reaching the Last Mile

Reaching the Last Mile represents the global health philanthropy of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates. Through collaborative and innovative investments, RLM works to advance health equity, combat preventable diseases, and support the growth of strong and resilient health systems that leave no one behind. For more information, follow us on X and IG at @RLMglobalhealth.

About RF Catalytic Capital, Inc.

A charitable offshoot of The Rockefeller Foundation, RF Catalytic Capital, Inc. (RFCC) enables foundations, impact investors, businesses, governments, and other like-minded funders to combine their resources to build funding solutions for social impact and bring about transformational change. RFCC leverages The Rockefeller Foundation’s expertise and resources while collaborating with partners and investors to multiply impact and help to transform today’s greatest challenges into collaborative solutions. For more information please visit rfcatalytic.org.