Developed nations 'confident' of hitting $100bn climate action pledge
Developed countries are "confident" that $100bn will be financed annually to aid climate actions in developing countries by 2020, a new report compiled by the UK and Australia has revealed.
The Roadmap $100 Billion report released on Monday (17 October) highlights that finance from public sources would rise to more than $67bn in 2020 – compared to $44bn in 2014. The public sector funds would then allow the private sector to mobilise around $33bn in the same timeframe.
“We are confident we will meet the $100bn goal from a variety of sources, and reaffirm our commitment to doing so through the range of actions,” the report stated.
“The transformation to a low greenhouse gas emission and climate resilient global economy will require efforts from all actors, beyond the scope of the $100bn goal. Developed countries intend to work with all countries to accelerate this transition and achieve the Paris Agreement goals.”
The United Nations Framework Convention on Climate Change (UNFCCC) Conference of Parties established the aim of aiding developing countries mitigate climate impacts in 2010. As part of the more recent Paris Agreement, developed countries were urged to scale-up support and introduce a “concrete roadmap” to reach the $100bn per year target. This report outlines how developed countries are likely to mobilise the funds.
According to the roadmap, developed countries will “significantly increase” finance for adaption, while also helping developing countries implement “ambitious mitigation contributions and adaptation plans” to attract private sector investment. The roadmap also strives to address barriers associated with climate finance and build strong policy environments in developing countries.
Alongside efforts to incentivise private sector investment, countries will work to mainstream climate change into decision making and to push the climate agenda in line with the Sustainable Development Goals. Sharing best practice and tracking climate finance also form part of the roadmap.
The report outlines that more than 30 governments, including the US, UK and Japan had pledged new funds in 2015. In September that year, the UK announced it would provide £5.8bn to developed countries by 2020 – while also reaffirming a commitment to achieve a 50:50 balance between adaptation and mitigation spend over this period.
The report – which collects estimates from the Organisation for Economic Cooperation and Development (OECD) – also noted that the World Bank Group, European Investment Bank and the European Bank for Reconstruction and Development all pledged new funds in 2015.
Commenting on the report, Christian Aid’s principle climate change advisor Alison Doig said: “This is a significant moment. This is a clear sign that developed countries are starting to take seriously their responsibility to deliver funding and support which will accelerate poor countries’ low carbon development and help them withstand the impacts of climate change.
“It’s vital that this precious public finance is targeted at the very poorest people, in the harder to reach places, places the private sector can’t or won’t go. We also need to see a fifty-fifty balance between funding for adaptation and for emission-reducing mitigation.”
Fair share finance
The roadmap is a far cry from the Civil Society’s - a group of NGOs, social movements, faith groups and trade unions - report in 2015, which suggests that richer countries aren’t accounting for their “fair share” of global emissions.
According to the report, currently poorer countries are pledging to cut CO2e emissions by 8.3 gigatonnes by 2030, compared to the richer countries which have pledged to reduce emissions by 5.5 gigatonnes.
The fact that the roadmap will seek to open up avenues for private sector investment is also crucial. According to the WRI, the $100bn target is probably unreachable without contributions from the private sector and international development banks.
However, close to $7trn will need to be spent on new green infrastructure across the globe in order to cut carbon emissions over the next 20 years, the Bank of England's governor Mark Carney has claimed.