Further Explanations

By examining a comprehensive dataset of development finance projects, this study identifies key factors influencing the allocation of climate finance. This work reveals significant patterns in climate finance distribution. This research contributes to the growing field of climate finance by offering a robust analytical framework for assessing the determinants of climate finance and proposing a scalable solution for monitoring financial flows aimed at addressing climate change in its entirety. The insights gained have important implications for policymakers and stakeholders striving to optimize the allocation of climate finance to support global sustainability and resilience goals. Climate Finance BERT (Bidirectional Encoder Representations from Transformers) is employed to classify development finance projects, distinguishing those that contribute to climate mitigation, adaptation, and environmental objectives. Working Paper available upon request from January 2025.