Sweden's climate aid

Sweden is one of the world’s most generous donors of international climate finance. International climate finance must contribute to both emissions reductions and climate adaptation. Through its climate aid, Sweden contributed to the world achieving the goal of USD 100 billion in global climate finance a year in 2022. Since then, the Swedish Government has made substantial investments to further expand and improve the efficiency of climate aid.

At COP29 in November 2024, a new global target for climate finance was adopted – to mobilise USD 300 billion per year in climate finance for developing countries by 2035 from both public and private sources. Sweden’s contribution to achieving this global goal is extensive and supports climate-smart infrastructure and improved climate change resilience, and the development of environmentally sustainable and inclusive societies in developing countries. It also contributes to the transition to sustainable food systems, reduced pollution, the sustainable use of natural resources, and improved capacity for climate adaptation and disaster preparedness.

However, given the scale of global needs, climate aid will never be enough. This is why Sweden is working to develop innovative financial tools for climate finance, for example to attract increased private funding. The green transition offers opportunities for synergies between trade and development assistance, where Swedish companies can play a key role by providing sustainable solutions.

Development of climate aid since 2019

The table below shows how Swedish climate aid has developed in recent years. Climate aid has increased significantly in the past two years, to a total of SEK 9.6 billion in 2023 and just over SEK 11 billion in 2024. Between 2019 and 2022, climate aid averaged SEK 8 billion a year.

These figures are based on the United Nations Framework Convention on Climate Change (UNFCCC) and OECD guidelines for climate finance reporting. Sweden’s climate aid consists of multiple components. The largest component consists of bilateral initiatives that are allocated in the form of support to individual initiatives and projects in countries via the Swedish International Development Cooperation Agency (Sida). Another large part goes to global climate funds that are linked to the Paris Agreement and the UNFCCC. The third part consists of Sweden’s contribution to development banks, the World Bank in particular, in which a large proportion of activities are focused on climate action. The fourth part consists of Swedfund’s investment activities, which are also primarily focused on climate issues.

Climate aid 2024

The summary of climate aid for 2024 shows a substantial increase to SEK 11.1 billion. This increase was mainly due to Sida, on behalf of the Government, increasing the integration of climate issues into various activities, which resulted in an increase of SEK 1.5 billion compared to 2022. In 2024, large payments were also made to the World Bank’s International Development Association (IDA), which meant that development banks’ contribution to climate initiatives increased to SEK 2.25 billion. At the same time, climate aid continued to increase to major climate funds the Global Environment Facility (GEF) and the Green Climate Fund (GCF).

Climate aid 2023

Sweden’s climate aid increased to SEK 9.6 billion in 2023 – an increase of SEK 1 billion from 2022. Sida subsequently concluded several new agreements and increased its investment in climate aid within several bilateral partnerships. As a result, Sida’s disbursements for the green transition increased by SEK 1 billion in 2023. The increases primarily related to activities in Ukraine, Mozambique and Kenya.

The special shareholder contribution of SEK 460 million to Swedfund for climate investments accounted for another large part of the increase. This contributed in particular to mobilising private capital.  

Other countries must increase their climate financing

Under the Paris Agreement, the countries of the world have jointly agreed to increase international climate finance to developing countries to USD 300 billion annually by 2035. Sweden is already a major donor and more countries now need to do more to increase funding, especially major emitting countries. Sweden urges countries to increase their contributions and welcomes those that have already done so. The New Collective Quantified Goal on Climate Finance (NCQG), adopted in 2024 at the COP 29 climate conference, calls on all actors to work together to enable the scaling up of financing to developing country parties for climate action from all public and private sources. The goal enables new actors and financial vehicles to contribute with climate finance, which Sweden welcomes because it allows us to work together to mobilise for a green transition throughout the world.

Sweden is working to link development assistance and international climate financing with trade promotion. Swedish companies and the Swedish resource base have much to contribute to other countries’ green transition.

Streamlining climate aid

Climate aid alone cannot address the extensive climate needs. Therefore, catalytic climate aid is needed in combination with innovative solutions and private sector investment. Sweden uses tools such as guarantees for mobilising private capital for environmental and climate work and is striving to link development assistance and international climate financing with trade promotion. Swedish companies and the Swedish resource base have much to contribute to other countries’ green transition.. Sweden’s new strategy for sustainable growth, green transition and education (2025-2029) provides an important platform for increased synergies between development assistance, trade and climate.

Sweden is also working to streamline the work of the major climate funds by contributing to simplifying application processes and improving the implementation of climate projects at national and regional level. Ultimately, the overall sustainability of climate action can only be ensured by all countries playing their part. Effective climate aid therefore includes improving countries’ own capacity to drive the climate transition. Sweden therefore supports countries in developing their nationally determined contributions (NDCs) and creating the conditions for an effective investment climate.