Greetings People !
The countdown could be done with fingers on one hand, finally.
Time flies so fast and we are ever so excited about it.
We hope that you are too.
Let’s do a short learning on climate finance with Ollie
Climate finance involves flows of funds from developed to developing nations to help poorer countries to cut their emissions and adapt to climate change.
The sources and governance of climate finance has been widely debated since the 2009 climate change summit in Copenhagen, where industrialised countries committed to giving $100 billion a year in additional climate finance from 2020 onwards. To get things going, immediate ‘fast-start’ finance of up to $30 billion was promised until the end of 2012.
Donor countries have met their initial commitment on fast-start finance. Over $30 billion in additional climate finance has been provided since Copenhagen. The UK has contributed £1.5 billion ($2.4 billion) so far, rising. But globally there is no clear path to ramp up support to the target $100 billion by the end of the decade – which is a concern given that rich countries have a history of not living up to aid promises.
Another concern is that meeting the target so far has involved the reclassification of some existing aid flows. Classification will always be a problem, particularly when it comes to dealing with the impacts of climate change (‘adaptation‘).
Better education and healthcare, access to safe drinking water, improved disaster relief and the availability of micro-finance will all make countries more resilient to climate change, but they are also basic development objectives. Therefore if the aim is climate-resilient development, there is no clear delineation between adaptation assistance and development aid.
Climate finance has been a central element of the international climate change agreements from the outset. The UN Framework Convention on Climate Change, agreed in 1992, stated that developed countries shall provide “new and additional financial resources” to developing countries. In the early years this financial assistance was channelled through the Global Environment Facility (GEF), either directly or through dedicated funds which the GEF administers (in particular, the Least Developed Country Fund and the Special Climate Change Fund). But over the years developing countries have become critical of the GEF, which they see as dominated by developed countries.
The search for new institutional arrangements has therefore been an important aspect of the climate finance discussion. The outcome has been the creation of a new organisation, the Green Climate Fund (GCF), which will be the main channel through which climate finance is allocated. The GCF, which is head-quartered in South Korea, is controlled by a Board on which developed and developing countries are equally represented.