Climate finance figures in detail The methodology behind the BMZ’s reporting
The markers show the contribution to climate finance made by a given project.
- Projects are assigned a score of “2” if mitigation or adaptation is a “principal” objective, meaning that the project would not otherwise have been carried out. In this case, Germany reports 100 per cent of the project's financial volume as being for the climate sector in question.
- A score of “1” means that climate change mitigation or adaptation is a “significant” objective. For such projects, 50 per cent of the financial volume is reported as climate finance. If a project scores “1” both for mitigation and for adaptation, Germany reports 100 per cent.
- A score of “0” means that the activity does not significantly contribute to climate goals. The BMZ does not report such project funding as climate finance.
Annual reporting
The BMZ reports regularly on its climate finance for countries in the Global South. It submits annual reports to the EU and biennial reports to the UN Framework Convention on Climate Change. Germany's official international climate finance is reported on the basis of commitments for bilateral climate finance and on the basis of disbursements for climate finance going to multilateral organisations.
The BMZ has, since 2014, included in its calculations of multilateral climate finance the eligible share of funding for certain multilateral organisations (“imputed multilateral shares”) as provided by the OECD.
Since 2013, the German government's reporting on bilateral climate finance has not only included budget funds but also other funding (market funds) that has been mobilised through public resources. This includes climate-related loans from KfW Development Bank and from the Deutsche Investitions- und Entwicklungsgesellschaft (German Investment and Development Company – DEG) for which market funds are used.
In order to report transparently on the contribution of public funds to climate finance and in order to guarantee that no funding is counted twice, the BMZ uses three categories to report KfW development loans:
- Interest subsidies, that is budget funds used to reduce the interest on the loan
- Grant equivalents
- Remaining volume of the development loan minus the interest subsidies and grant equivalents
Since 2017, the BMZ has reported grant equivalents from KfW development loans disaggregated by region. This provides a clearer picture of the degree to which these loans' terms differ from market terms.
Mobilisation of private climate finance
To report private climate finance that has been mobilised and provided via KfW Development Bank and DEG, Germany applies the harmonised scientific reporting methodology established by the OECD Development Assistance Committee (DAC) (External link). But Germany's support goes beyond what can currently be reported. There are options for mobilising private capital through other measures, for example capacity building through Technical Cooperation, that cannot be reported systematically at present.
As at: 19/06/2024