Climate financing and development: friends or foes?

This document addresses the objectives and activities classified under Official Development Assistance (ODA) and financial flows aiming to help developing countries cope with climate change (i.e. climate finance), and the important implications of diverting ODA from traditional development activities such as health, education and aid for trade towards mitigating and adapting to climate change.

It asserts that there are clear geographical and sectoral overlaps between current aid allocations and future adaptation finance needs, but also differences. It presents and categorizes 26 proposals from developed and developing countries, from Small Island States and large countries, from groups and individual countries, in relation to additionality of climate finance. It then develops, on the basis of the UNFCCC proposals, two sets of scenarios for the future provision of aid and climate finance.