LONDON (CU)_Back in 2009, the most developed countries agreed to mobilise $100 billion a year by 2020 and through to 2025 in order to assist developing nations in responding to climate change and reduce their carbon emissions, particularly by investing in renewable energy sources. Now, with just four months left until the UN climate talks (COP26) scheduled to be held in November, climate finance remains a vital issue in the push to limit global temperature rise to 1.5°C.
In an article published on the website of the Thomson Reuters Foundation on Thursday (8 July), the COP26 President-Designate Alok Sharma highlighted the frustration widespread among developing countries regarding the insufficient support provided by wealthy nations.
“Delivering the $100 billion is also a matter of trust, and trust matters in international climate politics,” the minister said. “I’ve heard first-hand from leaders and ministers in developing countries how frustrated they are that the promised funds have not been mobilised fast enough. Almost $80 billion was mobilised in 2018, the last year for which we have figures – a lot but not enough.”
Climate finance was among some of the key subjects discussed by Sharma during his recent visit to Jamaica. Participating in a meeting with Jamaican Prime Minister Andrew Holness, the COP26 President-Designate noted that countries such as Jamaica, which are most vulnerable to the effects of climate change, have done the least to cause this global crisis, while it is most developed economies that should take responsibility.
This is the case with Small Island Developing States as well. The striking fact here is that even though the SIDs represent more than one quarter of the world’s countries, together they account for less than one per cent of global carbon emissions. However, they are said to be are on the “front lines” of climate change.
During the recent G7 summit held in Cornwall, the Group of Seven most advanced economies agreed to increase finance in order to meet the $100-billion target, particularly in expanding their financial contributions for the protection of people and the nature from effects of climate change. Moreover, the group has also made progress in unlocking further funds via Special Drawing Rights. SDRs are reserve assets created by the International Monetary Fund (IMF). Currently, an allocation of $650-billion allocation is in preparation, and G7 governments have expressed their intention to have almost a sixth of these new SDRs support economies in their green recovery from COVID-19.
Commending the progress seen from the G7, Minister Sharma pointed out that it is the confidence which developing countries need that the promised $100 billion in climate finance will be delivered. “So developed countries need to publish a clear plan for how, together, we are going to deliver the $100 billion a year between now and 2025,” he said.
