By Douglas Alencar (UFPA)
Access to public data on the agreements reached at the Conferences of the Parties (COPs) to the United Nations Framework Convention on Climate Change (UNFCCC) is fundamental for understanding global efforts to combat climate change. Within this scope, climate finance emerges as a central pillar of the COPs, with developed nations committing to allocate resources to assist developing countries in facing the challenges imposed by climate change. These resources are directed both towards mitigation actions, focused on reducing greenhouse gas emissions, and towards adaptation initiatives, which aim to adjust to the already perceptible consequences of climate change. Additionally, the “cross-cutting” category encompasses actions that integrally benefit both mitigation and adaptation, or that offer broader support to the climate agenda.
In this global scenario of confronting climate change, climate finance plays a crucial role, demanding continuous efforts and substantial investments. The COPs function as the main platform for dialogue, goal setting, and the establishment of mechanisms for the transfer of these resources. In the Brazilian context, a detailed analysis of investments in mitigation, adaptation, and cross-cutting projects between 2011 and 2023 offers a clear perspective on the dynamics of these financial flows. The data reveals a notable variation in amounts and fluctuations between the investment categories, directly reflecting the priorities and inherent challenges in implementing the country’s climate agenda.
Transfers for Climate Finance
The column chart displays “Transfers for Climate Finance” annually from 2011 to 2023. The year 2012 stands out with the largest volume of transfers, reaching approximately R$ 1,550 million. After this peak, there was a significant drop in 2014, with the lowest recorded value, approximately R$ 150 million. In subsequent years, transfers showed fluctuations, with considerable values in 2013, 2015, and 2017, and a notable recovery in 2023, which registered the second highest volume of transfers in the period, approaching R$ 950 million. Overall, the chart illustrates the variation in investments for climate finance over the thirteen years presented.
Transfers for Climate Finance for Mitigation, Adaptation, and Cross-cutting
Source: UNFCCC and IDB.
The chart presents the annual evolution of investments, categorized into “mitigation” (blue), “adaptation” (red), and “cross-cutting” (green), over the period from 2011 to 2023. It is observed that in 2012, there was a significant peak in investments, predominantly in the “cross-cutting” category, reaching approximately R$ 1,500 million. After that year, the values fluctuated, with a highlight on 2015, where the “mitigation” category saw a notable increase, and 2023, which shows overall growth, with the “adaptation” category reaching its highest value in the period, contributing to a total investment close to R$ 900 million. The “mitigation” and “adaptation” categories show variability over the years, while the “cross-cutting” category presents the largest amounts in several years but also fluctuates considerably.
The panorama of investments in climate finance in Brazil, analyzed up to 2023, reveals a distribution of resources that deserves attention and reflection. It is evident that, until 2014, the largest share of investments was directed towards the “cross-cutting” category, indicating a preference for actions of a more comprehensive nature or those that fit multiple purposes. However, from that period onwards, a significant shift in priority became noticeable: resources allocated to mitigation, focused on reducing greenhouse gas emissions, gained prominence, taking a more expressive share of the budget.
Parallel to this reorientation, it is observed that investments aimed at adaptation – essential for preparing the country and its communities for the ongoing and future impacts of climate change – consistently remained the smallest volume since the beginning of the analyzed historical series. This allocation of resources raises a crucial question, especially given the current climate scenario. With the substantial increase and intensification of extreme weather events, such as recent devastating floods in several cities and prolonged droughts in other regions, the fragility of infrastructures and the vulnerability of populations become undeniable. In this context of increasing climatic adversity, there arises an urgent need to re-evaluate the financing strategy. It would be pertinent to consider a substantial increase in resources allocated to adaptation. Such a measure would not only align investments with the urgency of the challenges posed by extreme climatic occurrences but also strengthen the country’s resilience, protecting lives, livelihoods, and ecosystems. In summary, the current imbalance in fund distribution, with adaptation at lower levels, points to a strategic gap that, if not corrected, could worsen the consequences of climate change in Brazilian territory.
Overall, the analysis of transfers for climate finance in Brazil between 2011 and 2023, as illustrated by the charts, shows a scenario of variable investment, yet in recovery. The peak in 2012 and the subsequent drop in 2014 demonstrate the sensitivity of these flows to circumstantial factors. However, the recovery observed in 2023, largely driven by the increase in adaptation investments, signals a growing prioritization of climate actions. The dynamic between mitigation, adaptation, and cross-cutting projects reflects the complexity of the environmental agenda and the need for continuous and robust financial planning to address the challenges posed by climate change in the country.
[1] United Nations Framework Convention on Climate Change.
[2] Inter-American Development Bank.
