Climate finance targets for developing nations unmet: UN

HQ Team

November 3, 2022: Key targets to mobilize climate finance for developing nations are still unmet, even when global climate funding is increasing, the UN stated.

The UN had formed a Standing Committee on Finance, comprising 20 climate finance experts, which submitted four reports on climate finance, according to a November 2 statement.

“The reports show that while there has been an increase in the overall global climate finance flows, key targets to mobilize climate finance for developing countries have not been met.”

The reports will be a basic framework for discussions by governments at the UN Climate Change Conference COP27 in Sharm el-Sheikh from the sixth of this month.

The climate finance reports clarify where the world stands in its efforts to mobilize funding needed every year to green economies and build resilience to the inevitable impacts of climate change.

It builds on the experiences of countries, multilateral development banks, climate funds, and the financial community.

12% higher

One report shows that global climate finance flows were 12% higher in 2019-2020 than the previous biennium, reaching an annual average of $803 billion.

The increase was driven by higher investments in energy efficiency in buildings, investments in electric vehicles and measures to adapt to climate change, such as building new defences against flooding.

Climate finance from developed to developing countries increased between 6% and 17% in 2019-2020, directly from developed to developing countries or through climate funds and multilateral development banks.

The report identified that finance for mitigation or reducing greenhouse gas emissions constituted the largest share of climate-specific financial support.

Paris Agreement

A sole focus on positive climate finance flows will be insufficient to meet the overarching purpose and goals of the Paris Agreement, it stated.

Another technical report focuses on progress towards mobilizing $100 billion per year for consideration by governments at COP27.

“The report confirmed the goal was not met in 2020.”

It also identified the role of international public climate finance as critical in the face of the current economic challenges in developing countries due to extreme weather and food and energy crises.

Several new collective initiatives for the financial sector have been set up under the Race to Zero and the Glasgow Financial Alliance for Net Zero.

 “While there has been a rise in engagement of public sector financial institutions in developing countries in these initiatives, more participation from private financial institutions in developing countries is important for initiatives in the private sector.”

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