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May 6, 2024
U.S. International Climate Finance: FY2025
U.S. International Climate Finance
The Biden Administration’s
Over the past several decades, to substantially varying
International Climate Finance Plan
degrees, the United States has delivered financial and
With Executive Order (E.O.) 14008, “Tackling the Climate
technical assistance for climate change initiatives in the
Crisis at Home and Abroad,” of February 1, 2021 (86 FR
developing world through a variety of bilateral and
7619), President Biden directed that climate change “shall
multilateral channels, with appropriations enacted by
be an essential element of United States foreign policy and
Congress and implemented by the executive agencies. This
national security.” As called for by the E.O., the United
“climate finance” is funded primarily through programs at
States released the U.S. International Climate Finance Plan
the Department of State, the Department of the Treasury,
in April 2021. According to the plan, “climate finance”
and the U.S. Agency for International Development
refers to “the provision or mobilization of financial
(USAID). Funds for these programs, when pursued, have
resources to assist developing countries to reduce and/or
been requested in the President’s budget under the
avoid greenhouse gas (GHG) emissions and to build
International Affairs function (Function 150) and funded
resilience and adapt to the impacts of climate change.” The
through the annual State, Foreign Operations, and Related
plan defines climate finance to encompass not only
Programs (SFOPS) appropriation. Many activities have
congressionally appropriated funding, but also export
been funded at agency subaccount levels, with allocations
credit, development finance, and bilateral and multilateral
left to the discretion of the agencies under congressional
publicly leveraged private-sector investment.
consultation. Some additional international assistance may
The plan includes a strategy for international climate
also be funded at other federal agencies (e.g., U.S.
finance with a 2025 horizon; summarizes steps and
Environmental Protection Agency; National Aeronautics
instruments through which the U.S. government would
and Space Administration; National Science Foundation;
mobilize climate finance; and outlines how the U.S.
and Departments of Agriculture, Commerce, and Energy).
government plans to support climate-aligned finance flows
more broadly. In it, the Administration pledges to double
U.S. international development assistance for climate
U.S. annual climate finance by 2024, relative to funding
change initiatives is cross-cutting in scope; and climate
levels during the second half of the Obama Administration
finance is a fungible category. Thus, the definition of, and
(FY2013-FY2016, during which average annual climate
the emphasis on, climate finance has changed over time and
finance was approximately $2.9 billion). This includes a
across U.S. Administrations and Congresses. This report
pledge to triple adaptation funding. In September 2021,
looks at the status of U.S. climate finance for fiscal year
speaking at the U.N. General Assembly, President Biden
(FY) 2025. Typically, the U.S. government has divided
doubled the pledge again, to $11.4 billion annually by 2024.
climate finance into three main programmatic areas, some
In December 2023, the Biden Administration reported that
of which overlap with other development areas:
“[i]n 2023, preliminary estimates suggest that U.S. climate
• Adaptation: programs that aim to assist with reducing
finance will exceed $9.5 billion, on track to meet the
vulnerability to climate change impacts and building
President’s pledge.”
climate resilience.
•
FY2025 Budget Request and Authority
Clean Energy: programs that aim to reduce greenhouse
For FY2025, the Biden Administration’s SFOPS budget
gas emissions from energy generation and use.
request specified approximately $3.0 billion in direct and
• Sustainable Landscapes: programs that aim to reduce
indirect climate finance from State and USAID accounts
greenhouse gas emissions from deforestation.
and $0.3 billion in direct climate finance from Treasury
accounts (Table 1). The request claims the congressionally
Congress oversees U.S. international development
appropriated funding would “support the President’s $11.0
assistance for climate change initiatives. Congressional
billion commitment for international climate finance,” with
committees of jurisdiction have included, but are not
additional finance arising from loans, loan guarantees,
limited to, the House Committees on Foreign Affairs,
insurance products, and other financial instruments
Financial Services, and Appropriations, and the Senate
intended to leverage private-sector investment.
Committees on Foreign Relations and Appropriations.
Congress undertakes several activities regarding climate
In March 2024, President Biden signed P.L. 118-47, the
finance, including (1) authorizing federal agency programs
Further Consolidated Appropriations Act, 2024. Funds
and multilateral fund contributions, (2) appropriating funds
appropriated by Congress for climate finance in FY2024
for those authorizations, (3) providing guidance to the
totaled not less than about $0.9 billion, although some
agencies on authorized programs and appropriations, and
discretionary spending in larger accounts may be
(4) overseeing U.S. interests in the programs.
categorized as climate-related by the agencies in future
reporting (Table 2).
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Table 1. Climate Finance in the Biden Administration’s FY2025 Budget Request
(in millions of U.S. dol ars)
Agency
Program/Fund
Request
U.S. Department of State and U.S. Agency Sustainable Landscapes
$337.2
for International Development (Direct)a
Adaptation
$509.8
Clean Energy
$515.1
U.S. Department of State and U.S. Agency (Including Peace and Security; Democracy, Human
$1,669.2
for International Development (Indirect)
Rights, and Governance; Global Health; Education;
Agriculture/Food Security; Other Economic Growth;
Environment; and Disaster Risk Reduction)
U.S. Department of the Treasury (Direct)
Global Environment Facilityb
$127.7
Green Climate Fundc
$0.0
Clean Technology Fund
$150.0
U.S. Department of the Treasury
(Including Multilateral Development Banks; Food
Unspecified subaccount
(Indirect)
Security; Debt Restructuring; and Technical Assistance)
level funding
Other Agencies
(Including Peace Corps; Mil ennium Challenge
Unspecified subaccount
Corporation; Trade and Development Agency; Export-
level funding
Import Bank; and Development Finance Corporation)
Climate Finance (Total)
Not less than $3,309.0
Source: U.S. Department of State, “Congressional Budget Justification: Department of State, Foreign Operations, and Related Programs, Fiscal
Year 2025” and “Supplementary Tables, Fiscal Year 2025,” https://www.state.gov/fy-2025-international-affairs-budget/.
Notes: For a discussion of U.S. climate finance commitments, see CRS In Focus IF10763, U.S. International Climate Finance: A Primer.
a. “U.S. Department of State and U.S. Agency for International Development (Direct)” includes requested contributions for some
international organizations, including $15.0 mil ion for the Intergovernmental Panel on Climate Change / UN Framework Convention on
Climate Change; $51.9 mil ion for the Montreal Protocol Multilateral Fund; and $1.0 mil ion for the World Meteorological Organization.
b. The State Department has reported: “Because the Global Environment Facility (GEF) supports multiple environmental goals, only 85
percent of GEF funding is included in the climate finance totals.” Thus, Table I shows $127.7 mil ion of the $150.2 mil ion GEF request.
c. The State Department did not include a discretionary FY2025 budget request for contribution to the Green Climate Fund out of
Treasury’s accounts. It did, however, include a request for mandatory resources to invest “$3.0 bil ion over four years to support the
Second Replenishment of the Green Climate Fund (FY2025-FY2028). These funds would be appropriated to State and USAID.”
Table 2. Climate Finance in P.L. 118-47—Further Consolidated Appropriations Act, 2024
(in millions of U.S. dol ars)
Agency
Program/Fund
Funding Levels
Multilateral Assistance: Title V (Subtotal)
$252.7
U.S. Department of the Treasury
Global Environment Facility
$127.7
Clean Technology Fund
$125.0
Bilateral Economic Assistance: Title III (Subtotal)
$679.3
U.S. Department of State and U.S. Agency Sustainable Landscapes
Not less than $175.8
for International Development, among
other development agencies
Adaptation
Not less than $256.5
Clean Energy
Not less than $247.0
Climate Finance (Total)
Not less than $931.9
Source: Congress.gov.
Notes: The act stipulates further these funds include support for carrying out the purposes of the Electrify Africa Act (P.L. 114-121) and
implementing the Power Africa initiative and may be made available for U.S. contributions to the Adaptation Fund and the Least Developed
Countries Fund. Because the Global Environment Facility (GEF) supports multiple environmental goals, only 85% of GEF budget authority
($127.7 mil ion of the $150.2 mil ion appropriation) is included in the climate finance totals. Totals may not add due to rounding.
Richard K. Lattanzio, Specialist in Environmental Policy
IF12652
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U.S. International Climate Finance: FY2025
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