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Climate Funding Growth in 2023

A recent report indicates a remarkable rise in funding for climate change initiatives, with donations increasing by 20% in 2023. This surge marks the first time since 2020 that climate-related funding outpaced the overall growth in global philanthropic donations. The report, published by the ClimateWorks Foundation, provides insights into the trends in climate philanthropy over the past five years, highlighting critical funding gaps and emerging priorities in light of the accelerating impacts of climate change.

The findings reveal a dramatic increase in philanthropic giving towards climate mitigation efforts, amounting to between $9.3 billion and $15.8 billion invested in combating climate change in 2023. Helen Mountford, President and CEO of the ClimateWorks Foundation, stated, “The growth in climate funding is a positive step, but the stakes could not be higher.” As the global landscape becomes more complex and the earth continues to overheat, philanthropy is positioned to play an essential role in catalyzing transformative climate action that withstands political shifts and focuses on what communities truly need—economic and developmental opportunities, health, security, and a livable planet.

Key Findings of the Report

1. Record Growth in Climate Contributions: In 2023, climate donations experienced a significant 20% year-over-year increase, with foundation funding reaching a record high of $4.8 billion. This amount is nearly three times the $1.7 billion recorded in 2019.

2. Top-Funded Priorities: Clean electricity, forests, food, and agriculture were identified as the three most funded sectors between 2019 and 2023. Public engagement remains the primary strategy for climate action supported by philanthropy during this period.

3. Geographic Funding Disparities: The United States and Europe received 60% of country-specific funding from 2019 to 2023, while regions like Africa, parts of Asia and Oceania, and Latin America—home to over 6 billion people—only garnered about 20% of the total funds. Furthermore, low- and middle-income countries received only 14% of foundation funding as flexible core support, compared to approximately 33% allocated to beneficiaries in the U.S. and Europe.

4. Adaptation and Resilience Funding: For the first time, the funding trends report included data on adaptation and resilience efforts, which secured at least $600 million in foundation financing in 2023, to help communities adapt and become more resilient to escalating climate impacts.

5. Emerging Action Areas: The focus on Brazil, which will host COP30, and the industrial sector—accounting for a third of global emissions but significantly underfunded—is increasing among donors responding to global climate priorities.

Despite these advancements, climate donations still represent less than 2% of total global philanthropy, indicating that much more is needed to halve emissions by 2030 and avert the worst climate crises. Surabi Menon, Vice President of Global Intelligence at ClimateWorks Foundation, emphasized, “The time has come for ambitious and strategic funding. Philanthropy must seize the opportunity to accelerate progress towards climate goals for 2030.” With countless investable solutions ready for scaling, the sector is primed to absorb significantly more funding now. Collaborative platforms and resources are in place to guide donors in maximizing their impact on people and the planet.

Three Key Opportunities for Philanthropy

• - Unlocking Catalytic and Collaborative Potential: Philanthropy can trigger transformative public, private, and multilateral investments that provide groundbreaking climate solutions.
• - Investing in Capacity Building: A strong emphasis should be placed on developing beneficiary capacities and offering flexible, multi-year core support particularly in low- and middle-income nations.
• - Embracing Holistic Climate Solutions: These should intersect with societal issues such as human rights, public health, and economic development.

To access the full report, click here.

About the ClimateWorks Foundation

The ClimateWorks Foundation serves as a global platform enabling philanthropy to innovate and implement impactful climate solutions that benefit people and the planet. Since its inception in 2008, ClimateWorks has invested over $1.8 billion into more than 850 beneficiaries across over 50 countries.

For inquiries, contact Jennifer Rigney at +1 415-230-7324.