## Climate Philanthropy Reaches Record Highs, But Funding Gaps Persist: A 2024 Report
The fight against climate change received a significant boost in 2023, with philanthropic contributions surging by 20%, exceeding the overall growth in global philanthropic giving for the first time since 2020. This is according to the ClimateWorks Foundation’s 2024 Funding Trends Report, a comprehensive analysis offering five years of invaluable insights into how philanthropy is shaping climate action. While the record growth is undeniably positive, the report also starkly reveals persistent funding gaps and emerging priorities that demand immediate attention.
The report meticulously analyzes philanthropic funding from individuals and over 90 foundations, estimating that between $9.3 billion and $15.8 billion was channeled towards climate change mitigation in 2023. This represents a substantial increase, with foundation funding alone reaching a record-breaking $4.8 billion – almost triple the $1.7 billion invested in 2019. This growth, while encouraging, is still far short of what’s needed to meet the critical targets set for reducing emissions and mitigating the worst impacts of climate change.
Key Findings and Emerging Trends:
The report highlights several key trends:
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Record Growth, but Still Insufficient:
The 20% year-over-year increase is significant, but climate giving still constitutes less than 2% of total global philanthropy. This underscores the urgent need for a massive scaling-up of funding.*
Prioritization of Key Sectors:
Clean electricity, forest conservation, and food and agriculture emerged as the top three sectors receiving funding between 2019 and 2023. Public engagement strategies also continue to receive significant support.*
Stark Geographic Disparities:
A concerning disparity exists in geographical funding distribution. The U.S. and Europe received a disproportionate 60% of tracked funding directed to a single country or region from 2019 to 2023. In stark contrast, Africa, Other Asia and Oceania, and Latin America – collectively home to over 6 billion people – received an estimated 20%. This inequality extends to grantmaking approaches, with low-to-middle-income countries receiving a mere 14% of foundation funding as flexible, core support, compared to almost 33% for U.S. and European recipients.*
Growing Focus on Adaptation and Resilience:
Recognizing the escalating impacts of climate change, the report includes data on adaptation and resilience efforts for the first time. At least $600 million in foundation funding was dedicated to these crucial initiatives in 2023, assisting communities in adapting to and becoming more resilient against climate-related challenges.*
Emerging Focus Areas:
The report highlights increasing attention directed towards Brazil (host of COP30) and the industrial sector, a significant emitter severely underfunded despite its crucial role in global emissions. This shift reflects a growing recognition of the need for targeted interventions in critical areas.The Path Forward: Opportunities for Transformative Change
ClimateWorks Foundation President and CEO Helen Mountford emphasizes the critical role philanthropy plays in catalyzing transformative climate action. She highlights the need for bold and collaborative efforts to bridge divides and build a sustainable and equitable future. Surabi Menon, vice president of global intelligence, adds that the time is ripe for ambitious, strategic funding, with numerous viable solutions ready for scaling. The report suggests three key opportunities for philanthropy to maximize its impact:
1.
Unlocking Catalytic Potential:
Leveraging philanthropic investments to spur larger-scale investments from public, private, and multilateral sources.2.
Investing in Grantee Capacity:
Providing extensive support for grantee capacity development and multi-year flexible, core support, particularly in low-to-middle-income countries.3.
Embracing Holistic Solutions:
Adopting integrated climate solutions that address the intersection of societal challenges, including human rights, public health, and economic development.The 2024 Funding Trends Report serves as a crucial call to action. It underscores the need for significantly increased and more equitable climate funding to effectively address the climate crisis and build a sustainable future for all. The full report is available for download [here](insert link here). The future of our planet depends on it.
