Data | Climate finance adds another layer of inequity to climate change Premium

Climate justice activists demand developed countries raise investments in climate adaptation/mitigation to help poorer countries bear the brunt of climate disasters. Chart 1 shows the carbon dioxide emissions per capita emitted by various regions and countries; Chart 2 shows the total investment in climate-related activities as a fraction of GDP; Chart 3 shows the approved and disbursed funds; Chart 4 shows the climate vulnerability index and risk of debt distress. Most countries in debt distress/high risk are in Sub-Saharan Africa, which is also the most vulnerable to climate change.

In the last few years, climate justice activists have been campaigning for the world’s economically developed countries to raise their investments in climate adaptation and mitigation, including paying for other countries’ abilities to deal with the effects of climate change. Countries in Sub-Saharan Africa, Latin America, and South Asia have historically contributed the least to global warming; yet, they are bearing the bigger brunt of climate disasters – both in the form of extreme natural phenomena and debt distress. On the other hand, countries in North America and Europe have contributed and continue to contribute the most, and are also the creditors of the debt crisis.

Chart 1 | The chart shows the carbon dioxide emissions per capita emitted in 1980-2021 by various geographical regions, including Africa, Asia (excluding China and India), and South America, and by some countries. It also shows (as a fixed black line) a baseline target of carbon dioxide emissions (2.3 tonnes per capita) needed to limit global warming to 1.5° Celsius, as determined by the Institute for European Environmental Policy.

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The global average emissions per capita are currently double this target and have stayed above 4.7 tonnes per capita since 2010, whereas Africa and India have both been consistently under. China crossed the global average in 2004. It steadily climbed to 8 tonnes per capita in 2021 and joined Europe and Oceania. Notably, while the overall emissions of the UAE and the U.S. have declined, as of 2021 these countries still had the highest emissions per capita (21.8 tonnes and 14.9 tonnes, respectively).

Chart 2 | The chart shows the total investment in climate-related activities by each World Bank region as a fraction of that region’s total GDP in 2019 and 2020. This includes public and private investment in, among others, climate mitigation and adaptation activities, reduction of fossil-fuel use, and reforestation.

 In both years, Sub-Saharan Africa had the highest investment fraction in climate finance (1.3% of its GDP), followed by East Asia and the Pacific (1%) and South Asia (0.9%). The U.S. and Canada had the lowest proportionate investment, at only 0.3% of their GDP.

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