Chapter 3 | TRACKING CLIMATE FINANCE
Chart 4: Sectoral Contribution to Total Climate Finance, 2018-2023
100%
Agriculture
90%
Banking and financial services
80%
70%
Education
60%
50%
Energy
40%
Multisectoral
30%
20%
Transport
10%
0%
Other
Source: OPEC Fund climate finance reports 2018-21, 2022 and 2023 | See also Annex 7.3, Table 7, 8 and 9
Chart 4 depicts the sectoral contribution of climate finance to total climate finance of the OPEC Fund for the time periods 2018-21, 2022 and 2023. This corresponds with Tables 7, 8 and 9 in the Annex.
The review of the data indicates that the sectoral contribu- tion to the OPEC Fund’s total climate finance over the years (Chart 4) does not indicate a consistent sectoral focus. In the baseline, energy (30 percent) contributed most cli- mate finance followed by banking and finance (17 percent) and transport (16 percent). In 2022, banking and finance (37 percent) saw the highest contribution followed by mul- tisectoral projects (30 percent) and energy (22 percent). In 2023, multisectoral projects (32.4 percent) recorded the highest contributions, followed by energy (18 percent) and transport (17 percent). The energy sector was the main contributor to total climate finance from 2018 to 2021 (baseline period). How- ever, the contributions from the energy sector decreased gradually from 30 percent to 18 percent over the last three
years (Table 10 in the Annex). Climate finance in the ener- gy sector serves primarily energy mitigation projects such as renewable energy. This decreasing trend is mainly due to the reduction in the public sector’s contribution to the energy sector, which fell from 21 percent in the base year to 9 percent in 2022 and zero in 2023 (Tables 11a, 11b and 11c). During this period, the energy sector’s contribution to the OPEC Fund’s private sector operations increased from 42 percent in the base year to 75 percent in 2022, recording 57 percent in 2023 (Table 12a, 12b and 12c). Re- newable energy projects (solar and wind) in the private sector have emerged as key drivers of climate finance in the OPEC Fund. As a result, increased financing in energy in the private sector and the expansion of policy-based loans in the public sector has been yielding higher climate finance.
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