Climate finance rising on paper — but not in reality, new analysis warns
Panam, a community in South Sudan. In recent years climate change has disrupted weather patterns in this region, making it increasingly difficult for communities to rely on traditional farming. Adaptation efforts are urgently needed. Photographer: Jesper Houborg.
A new analysis from DanChurchAid shows that global climate finance growth largely reflects new counting methods, not more funding reaching communities.
COPENHAGEN, DENMARK, April 15, 2026 /EINPresswire.com/ -- For years, developed countries have called for a broader contributor base in international climate finance, arguing that emerging economies should also contribute to meeting global targets.
At the UN climate summit in 2024, this approach was formalised. A new global finance goal will be met by counting contributions from a wider group of countries.
The new analysis by DanChurchAid, Delivering on Adaptation, which focuses on adaptation finance, shows that developing countries are already contributing to multilateral development banks. As a result, total climate finance appears higher when these contributions are included.
However, this does not necessarily reflect an increase in funding reaching vulnerable communities.
“The numbers may be going up, but that doesn’t mean more support is reaching the ground,” said Mattias Söderberg, Global Climate Lead at DanChurchAid. “In many cases, it simply means we are counting the money differently.”
A broader contributor base can improve transparency and better reflect global financial flows. But it does not automatically lead to higher levels of contributions to people facing climate impacts.
At a time when several developed countries are cutting aid budgets, there is a growing risk that reported progress on climate finance does not match reality.
“Improved reporting will not solve the climate crisis,” said Mattias Söderberg. “What matters is whether more funding is actually reaching communities facing climate impacts.”
“If we mistake better accounting for real progress, we risk underestimating how far we still have to go,” he added.
About the report:
The analysis examines global flows of international adaptation finance based on publicly available data and highlights key trends in how finance is measured and delivered. You find the report here https://www.noedhjaelp.dk/wp-content/uploads/sites/2/2026/04/delivering-on-adaptation.pdf
Mattias Sõderberg
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