Transparency reports show huge finance gap but progress on Paris Agreement

Under the Paris Agreement, countries are required to submit Biennial Transparency Reports to the UNFCCC to report their climate actions, including GHG emissions.

Over 100 countries have submitted their Biennial Transparency Reports (BTRs), signaling that parties are actively beginning to implement the Paris Agreement, according to the 2025 BTR Synthesis Report released on Friday. However, the reports also highlight a substantial gap in the finance needed to execute climate action plans, particularly in developing countries.

India is yet to submit its first Biennial Transparency Report. (AP File Photo)

The synthesis report notes that while many developing nations have made progress in reporting and implementing climate actions, the financial resources required far exceed what has been received. For instance, 37 developing countries reported a total financial requirement of $3,396.23 billion for climate action — mostly before 2030 — whereas 49 countries reported receiving only $60.84 billion in climate finance.

The report further observed that several developing countries are still setting up systems to collect and track information on financial support received and were not yet able to provide complete data in their BTRs.

The findings show that financial, technological, and capacity-building support for climate action provided to developing countries in 2021–2022 has increased compared to previous bienniums. Much of the financial assistance continues to flow to sectors identified as priorities by recipient countries, particularly energy and transport in terms of mitigation efforts. In adaptation, the agriculture sector appears to have received financial support proportionate to its needs, though this was not the case for other sectors.

“The submission of over 100 BTRs is a clear sign that parties are very actively starting to implement the Paris Agreement, with practical real-world actions, across economies and societies,” said UN Climate Change executive secretary Simon Stiell in a statement on Friday. He added the reports demonstrate that climate action is being implemented systematically and driving tangible progress but emphasized that such efforts “must be broadened and accelerated”.

Highlighting the growing evidence of climate initiatives, Stiell noted that countries across regions are taking concrete steps through stronger policies, new institutions, and broader social participation. “From renewable energy to electric vehicles, from energy efficiency gains to reforestation and emission trading schemes, to growing attention on adaptation as part of climate change strategies, the evidence is clear: the transition is well under way, but must now speed up and scale up urgently,” he said.

Stiell also cautioned that while progress is visible, significant challenges remain. “More and higher-quality finance needs to flow where it’s needed. Strong data and transparency systems are vital. And inclusive, just transitions are crucial to ensure that far more people share in the vast human and economic benefits of stronger climate actions, in a fast-changing world,” he said. He pointed out that barriers such as capacity and data gaps, and a persistent shortfall in financial and technological support, continue to hinder developing nations.

India, meanwhile, submitted its fourth Biennial Update Report (BUR-4) to the UN Framework Convention on Climate Change (UNFCCC) on December 30, 2024, which showed a 7.93% reduction in total greenhouse gas (GHG) emissions in 2020 compared to 2019. India is yet to submit its first BTR.

Under the Paris Agreement, countries are required to submit Biennial Transparency Reports to the UNFCCC to report their climate actions, including GHG emissions, mitigation measures, and support received and provided, thereby promoting transparency and accountability in global climate efforts.