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Surge in Climate Philanthropy in 2023

In 2023, climate funding witnessed a remarkable growth of 20%, surpassing the trend of overall global philanthropic growth for the first time since 2020. According to the latest findings from the ClimateWorks Foundation's 2024 Funding Trends Report, a considerable shift in philanthropic focus towards climate action is becoming clear, revealing patterns of growth, significant disparities, and fresh priorities.

The report encapsulates insights from five years of data on philanthropic contributions targeting climate change. Notably, contributions directed towards climate mitigation in 2023 ranged from $9.3 billion to $15.8 billion. Helen Mountford, President and CEO of ClimateWorks Foundation, commented, "Though the increase in climate funding signifies positive momentum, we face an urgent reality that cannot be ignored." She emphasizes that philanthropy plays a crucial role in facilitating transformative climate solutions that align with societal needs, such as health, economic stability, and environmental sustainability.

Key Findings from the Report

Several noteworthy findings emerged from the 2024 Funding Trends Report:

1. Unprecedented Growth Rate: The 20% rise in climate funding reflects a stark contrast to prior years, particularly when analyzed against 2019, which recorded only $1.7 billion in donations; the recent figure nearly triples that amount.

2. Primary Focus Areas: From 2019 to 2023, the top priorities for funding included clean electricity, forests, and food/agriculture. Public engagement consistently emerged as a crucial enabling strategy in advancing climate initiatives.

3. Geographic Disparities: The report highlights a troubling imbalance in funding distribution. Of the funding directed towards specific countries or regions, approximately 60% was allocated to the U.S. and Europe. Contrastingly, Africa, parts of Asia, and Latin America—home to over 6 billion inhabitants—received merely about 20% of philanthropic support. Furthermore, low-to-middle-income nations received only 14% of contributions as core support, compared to 33% for grants allocated to U.S. and European entities.

4. Adaptation and Resilience: For the first time, the report delineates funding directed towards adaptation and resilience, revealing that at least $600 million was allocated in 2023 for initiatives aimed at fortifying communities against climate impacts.

5. Emerging Focus Areas: Regions such as Brazil, as the upcoming host of COP30, and the industrial sector, which is significantly underfunded yet a major contributor to global emissions, have begun attracting increased philanthropic attention, signifying a shift in response to international climate exigencies.

Despite these advancements, climate-related funding still constitutes a mere 2% of total global philanthropic contributions. This statistic underscores the drastic measures required to meet the climate goals established for 2030. Surabi Menon, Vice President of Global Intelligence at ClimateWorks Foundation, expressed urgency, stating, "The time is now for bold, strategic funding initiatives. We have the potential to propel substantial progress towards global climate objectives, and the available solutions are ready to be scaled."

Opportunities for Philanthropy

To navigate future challenges, the report flags three pivotal opportunities for philanthropists:

• - Catalyze transformative investments from public and private sectors by harnessing collaboration and community efforts.
• - Deep investment in capacity development for grant recipients, particularly in underfunded regions, must be a priority in long-term strategies.
• - Adopt comprehensive climate solutions that penetrate societal issues at the intersection of human rights, public health, and economic advancement.

These insights and findings emphasize the pivotal role philanthropic efforts play in combating climate change, urging a collective pursuit of sustainability, equity, and resilience. For deeper insights and a comprehensive view of the report's data, visit the ClimateWorks Foundation’s website.