The UN's Green Climate Fund missed its target because of wealthy nations - Quartz
The UN's Green Climate Fund missed its target because of wealthy nations
The United Nations’ Green Climate Fund fell short of its $10 billion target on Thursday (Oct. 5), at its second pledge conference in Bonn, Germany, to replenish funds. While some countries like the UK announced their pledges in advance, five nations didn’t renew their commitments, including Australia, Italy, Sweden, Switzerland, and the US.
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The Green Climate Fund is the world’s largest multilateral climate fund. Established in 2010, it helps developing countries cut emissions and prepare for climate change. Initial pledges to start the fund in 2014 included 45 countries committing a combined $10.3 billion. The first replenishment was in 2019, when the fund gained another $10 billion from 32 countries. At this year’s conference, 46 nations gave $9.3 billion in pledges.
That money is just a drop in the bucket, given the roughly $200 billion needed by developing countries each year until 2030 to adapt to climate change, according to estimates by the UN.
A surging need for funds to cope with climate change
In response to the shortfall, the UN warned of the growing need for climate funding in developing countries. The US and China are the world’s top polluters, but one hasn’t renewed its pledge to the Green Climate Fund, and the other has never contributed. The US made the largest pledge at the fund’s launch—about $3 billion back in 2014—but hasn’t renewed since. China has yet to join the fund with other wealthy nations.
The UK, Germany, France, and Japan are the biggest backers of the Green Climate Fund, collectively contributing $7.1 billion in renewed funds. Germany is asking China and the Gulf states to pitch in, particularly leading up to the UN Climate Change Conference, COP28, in Dubai next month.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”