Rich nations 'likely' met $100 bn climate finance goal: OECD

Rich nations 'likely' met $100 bn climate finance goal: OECD

Developing economies least to blame for the greenhouse gases that stoke global warming are among the most exposed to the destructive effects of climate change
Developing economies least to blame for the greenhouse gases that stoke global warming are among the most exposed to the destructive effects of climate change. Photo: Hai Duong / AFP
Source: AFP

Wealthy nations likely met their goal of providing $100 billion in annual climate finance to poorer nations last year -- two years later than promised and only a fraction of the "extensive needs", the OECD said Thursday.

The OECD report comes ahead of the UN's COP28 climate negotiations later this month in Dubai, where finance will be a major sticking point.

The Organisation for Economic Co-operation and Development is tasked with monitoring official figures on the pledge to help developing countries fund their energy transitions and resilience in the face of accelerating climate impacts.

In 2009, richer countries promised to reach $100 billion annually in funding for these priorities by 2020.

Failure to meet the target on time has damaged trust in international climate negotiations.

In the most up to date figures, the OECD said richer countries reached $89.6 billion in total funding for 2021.

Read also

Oil, gas giants could pay climate damage and still profit: research

"Based on preliminary and as yet unverified data, the goal looks likely to have already been met as of 2022," said OECD Secretary-General Mathias Cormann in the foreword to the latest report.

But he added experts estimate that developing countries will need to spend about a trillion dollars a year by 2025 for climate investments, rising to roughly $2.4 trillion each year between 2026 and 2030.

"Although public finance can only contribute a share of these extensive needs," Cormann said, international donors would be crucial in helping to boost overall funding.

He said that currently finance from rich countries was not effective enough in attracting additional private sector investments and funding.

Finance focused on adaptation that countries must embark on to prepare themselves for an array of increasing climate impacts was also lagging, he said.

Read also

German govt spending plans at risk as court rules

Adaptation measures can include building coastal defences, or helping farmers become more resilient to increasingly ferocious floods, droughts and other climate extremes.

Action is 'stalling'

Many developing economies least to blame for the greenhouse gases that stoke global warming are among the most exposed to the costly and destructive effects of worsening weather extremes and rising seas.

World leaders meeting at the climate talks in the United Arab Emirates will face a tough reckoning over financial solidarity between rich polluters and vulnerable nations, as a failure to cut planet-heating emissions threatens the Paris Agreement's global warming limits.

Adaptation is a key priority for developing countries and wealthy governments have promised to double adaptation finance by 2025, to $40 billion a year.

But as the world warms, climate change impacts increase and so too do the costs of preparing for them.

Earlier this month, a report by the UN Environment Programme (UNEP) projected that overall annual funding that developing countries need to adapt to climate impacts this decade had increased to as much as $387 billion.

Read also

Japanese economy shrinks 0.5 percent in third quarter

At the time, UN Secretary-General Antonio Guterres warned action was "stalling" even as the need to protect people increases.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Online view pixel