The latest report on global air quality funding shows a complex landscape with increasing investments but significant gaps needing attention.
Air quality issues are fundamentally interconnected with climate, health, and developmental strategies, positioning international development funders as pivotal players in initiatives aimed at enhancing air quality.
Assessing how funding is allocated, its focus, and identifying existing gaps is essential for stakeholders to optimize the use of constrained resources in the fight for cleaner air.
About the report
The eighth edition of the annual State of Global Air Quality Funding report, produced by the Clean Air Fund and featuring analysis from the Climate Policy Initiative (CPI), offers a comprehensive overview of international development funding related to air quality. It evaluates how these funds are allocated across different regions, sectors, financial instruments, and the nature of air quality initiatives. The report also includes data and analysis through 2024, encompassing various aspects:
- Funding explicitly aimed at enhancing outdoor air quality.
- Projects that primarily target other goals but indirectly contribute to air quality improvements.
- Analysis of funding extending the life of fossil fuels, assessing its alignment with air quality objectives.
- Investments specifically addressing super pollutants, such as black carbon and, notably for the first time, tropospheric ozone and its precursors.
- Trends based on funding distribution across nations, regions, sectors, and sources.
The report presents both a year-over-year analysis and a five-year total perspective, offering insights into how international development funding contributes to the goal of cleaner air.
Year-on-year funding shows some progress
The 2024 data reflects some encouraging trends. Specifically, outdoor air quality funding showed an increase of $1.7 billion from 2023 to 2024, nearing the high set in 2022. However, this funding still accounts for less than 1% of the total international development funding pool. Meanwhile, financial support for fossil fuel continuation saw a significant reduction, dropping from $9 billion in 2023 to $4.7 billion in 2024, which adjusts the funding ratio to one dollar spent on air quality for every dollar spent on fossil fuels.
This year also saw substantial growth in air quality initiatives that lack explicit climate goals, jumping from $4.4 billion the previous year to $7.9 billion. This change suggests an evolving focus among funders, recognizing air quality as a significant independent policy goal.
Long-term trajectory remains concerning
Examining funding trends over the last two five-year periods reveals a modest 9% increase in total air quality funding—from $113.8 billion in 2019-2023 to $124.6 billion in 2020-2024. Despite this, the total funding dipped to $28.7 billion in 2024, marking the first decrease in a five-year span. A significant portion of this funding—84%, or $24 billion—was characterized as flows tied to air quality benefits rather than direct allocations.
Funding is heavily concentrated
During the period from 2020 to 2024, a staggering 62%—equating to $77 billion—of total air quality funding was attributed to projects within the transport sector. Alarmingly, over half of the outdoor air quality funding was concentrated in just three nations, highlighting potential inequities in resource distribution. Additionally, four major funders were responsible for three-quarters of this funding. A notable 89%, or $110 billion, was delivered through loans, indicating a preference for debt financing rather than outright grants or investments.
Flows are misaligned with need
In a troubling trend, the ten countries with the highest pollution levels received less than 1% of global air quality funding in 2024. Geography, rather than need, appears to dictate funding flows, resulting in discrepancies between where funding is available and where it is most desperately required. Although there's an emerging pattern of geographical diversification in funding, it often fails to align with the needs of the most polluted regions.
Super pollutants remain a missed opportunity
Despite their significant benefits for both air quality and immediate climate impacts, addressing super pollutants is infrequently highlighted in international development finance strategies. Funding specifically designated to reduce primary black carbon accounted for less than 1% of total air quality funding during the 2020 to 2024 timeframe, and funding for primary tropospheric ozone was less than $500,000, with no reported funding in 2024.
This ongoing misalignment in funding strategies versus the urgent need for improved air quality initiatives signifies critical areas for future intervention and advocacy. Stakeholders must recalibrate their funding strategies to ensure they genuinely target the regions and pollutants that require the most immediate attention.
