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Updated May 9, 2022
U.S. International Climate Finance: FY2023
U.S. International Climate Finance
The Biden Administration’s
Over the past several decades, to varying degrees, the
International Climate Finance Plan
United States has delivered financial and technical
With Executive Order (E.O.) 14008, “Tackling the Climate
assistance for climate change activities in the developing
Crisis at Home and Abroad,” of February 1, 2021 (86
world through a variety of bilateral and multilateral
Federal Register 7619), President Joe Biden directed that
channels with appropriations passed by Congress and
climate change
implemented by the executive agencies. Climate finance is
shall be an essential element of United States
funded primarily through programs at the Department of
State, the Department of the Treasury, and the U.S. Agency
foreign policy and national security. The United
for International Development (USAID). Funds for these
States will work with other countries and partners,
programs are requested in the President’s budget under the
both bilaterally and multilaterally, to put the world
International Affairs function (Function 150) and funded
on a sustainable climate pathway.
through the annual State, Foreign Operations, and Related
As called for by the E.O., the United States released the
Programs (SFOPS) appropriation. Many activities are
U.S. International Climate Finance Plan. According to the
funded at agency subaccount levels, with allocations left to
plan, “climate finance” refers to “the provision or
the discretion of the agencies under congressional
mobilization of financial resources to assist developing
consultation. Some additional international assistance is
countries to reduce and/or avoid greenhouse gas (GHG)
funded at other federal agencies (e.g., U.S. Environmental
emissions and to build resilience and adapt to the impacts of
Protection Agency; National Aeronautics and Space
climate change.” The plan includes a strategy for
Administration; National Science Foundation; Peace Corps;
international climate finance with a 2025 horizon;
U.S. Trade and Development Agency; and Departments of
summarizes steps and instruments through which the U.S.
Agriculture, Commerce, and Energy).
government would mobilize climate finance; and outlines
how the U.S. government plans to support climate-aligned
U.S. Administrations have typically divided international
finance flows more broadly. In it, the Administration
climate finance into three main programmatic initiatives or
pledged that
categories:
[t]he United States intends to double, by 2024, our
Adaptation: programs that aim to assist low-income
annual public climate financing to developing
countries with reducing their vulnerability to climate
countries relative to what we were providing during
change impacts and building climate resilience.
the second half of the Obama-Biden Administration
(FY2013-16). As part of this goal, the United States
Clean Energy: programs that aim to reduce greenhouse
intends to triple our adaptation finance by 2024.
gas emissions from energy generation and energy use by
The Biden-Harris Administration will work closely
accelerating the deployment of clean energy
with Congress to meet these goals.
technologies, policies, and practices.
The Biden Administration has since doubled the pledge
Sustainable Landscapes: programs that aim to reduce
again. Speaking at the United Nations General Assembly on
greenhouse gas emissions from deforestation and forest
September 21, 2021, President Biden stated he intends to
degradation.
work with Congress to increase annual U.S. climate
financing to $11.4 billion annually, an amount he said was
Congress oversees U.S. government assistance to lower-
necessary “to support the countries and people that will be
income countries for climate change initiatives.
hit the hardest and that have the fewest resources to help
Congressional committees of jurisdiction have included, but
them adapt.”
are not limited to, the House Committees on Foreign
FY2022 Budget Authority and FY2023
Affairs, Financial Services, and Appropriations and the
Request
Senate Committees on Foreign Relations and
Appropriations. Congress undertakes several activities
On March 15, 2022, President Biden signed H.R. 2471, the
regarding international climate change assistance, including
Consolidated Appropriations Act, 2022. Funds appropriated
(1) authorizing federal agency programs and multilateral
for international climate finance totaled approximately $1.1
fund contributions, (2) appropriating funds for those
billion for FY2022 (Table 1).
authorizations, (3) providing guidance to the agencies on
authorized programs and appropriations, and (4) overseeing
For FY2023, the Biden Administration requested over $2.7
U.S. interests in the programs.
billion for international climate finance in the Department
of State, Foreign Operations, and Related Programs,
FY2023, budget request (Table 2).
https://crsreports.congress.gov
U.S. International Climate Finance: FY2023
Table 1. Climate Finance in H.R. 2471—Consolidated Appropriations Act, 2022
(in millions of U.S. dol ars)
Agency
Program/Fund
Funding Levels
Multilateral Assistance: Title V (Subtotal)
$341.2
U.S. Department of State
IPCC / UNFCCC
$15.0
Montreal Protocol Fund
$51.9
U.S. Department of the Treasury
Global Environment Facility
$149.3
Green Climate Fund
—
Clean Technology Fund
$125.0
Bilateral Economic Assistance: Title III (Subtotal)
$730.0
U.S. Department of State and U.S. Agency Sustainable Landscapes
Not less than $185.0
for International Development, among
other development agencies
Adaptation
Not less than $270.0
Renewable Energy
Not less than $260.0
U.S. Department of the Treasury
Tropical Forest Conservation and Coral Reef Act
$15.0
Climate Finance (Total)
Not less than $1,071.2
Source: Congress.gov.
Table 2. Climate Finance in the Biden Administration’s FY2023 Budget Request
(in millions of U.S. dol ars)
Agency
Program/Fund
Request
Multilateral Climate Change and Environmental Funds (Subtotal)
$2,277.7
U.S. Department of the Treasury
Green Climate Fund
$1,600.0
Global Environment Facility
$127.7
Clean Technology Fund
$550.0
Bilateral and Other Programming (Subtotal)
$441.5
U.S. Department of the Treasury
Tropical Forest Conservation and Coral Reef Act
$15.0
U.S. Department of State
Intergovernmental Panel on Climate Change / United Nations
$21.0
Framework Convention on Climate Change
Montreal Protocol Fund
$64.0
Oceans and International Environmental and Scientific Affairs
$341.5
Other Agencies
(Including U.S. Agency for International Development; Peace
Unspecified sub-
Corps; Mil ennium Challenge Corporation; U.S. Trade and
account level funding
Development Agency; Export-Import Bank; and International
Development Finance Corporation, among others.)
Climate Finance (Total)
Not less than $2,719.2
Source: U.S. Department of State, “Congressional Budget Justification Department of State, Foreign Operations, and Related Programs,”
FY2023, https://www.state.gov/fy-2023-international-affairs-budget/.
Notes: For a discussion of the multilateral funds and programs, and a primer on U.S. international climate finance commitments, see CRS In
Focus IF10763, U.S. International Climate Finance: A Primer. Of the FY2023 request, the State Department states: “Because the Global
Environment Facility (GEF) supports multiple environmental goals, only 85 percent of GEF funding ($127.67 mil ion [of the $150.2 mil ion
request]) is included in the climate finance totals.”
IF12036
Richard K. Lattanzio, Specialist in Environmental Policy
https://crsreports.congress.gov
U.S. International Climate Finance: FY2023
Disclaimer
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https://crsreports.congress.gov | IF12036 · VERSION 5 · UPDATED