Today, President Obama released his 2016 Budget Request outlining the administration’s spending plans for the coming fiscal year. The request includes $500 million in funding for the Green Climate Fund, and $230 million for the Climate Investment Funds. The budget allocation to the Green Climate Fund is part of the $3 billion pledge the U.S. made in November 2014, while $230 million requested for the Climate Investment Funds would complete a commitment made under the Bush Administration in 2008.
Green Climate Fund
Today, at the international climate conference in Lima, Peru (COP20), the government of Belgium pledged to contribute more than 50 million Euros (around $62 million US) to the Green Climate Fund, edging the fund past its $10 billion goal for 2014. This is an important marker in making the Green Climate Fund operational.
Following is a statement by Athena Ballesteros, Finance Director, World Resources Institute:
WASHINGTON— On November 20, 2014, countries held a pledging conference of the Green Climate Fund in Berlin – where countries announced their financial commitments to the Fund. These funds will be used to support vulnerable countries to respond to the mounting risks of climate change, and to reduce emissions that cause climate change.
Recently the world took two giant steps toward reaching a global agreement to fight climate change in 2015: a landmark U.S.-China accord and a $4.5 billion pledge to the Green Climate Fund by the United States and Japan.
But there are some conditions attached.
WASHINGTON (November 14, 2014) — President Obama announced that the United States will contribute $3 billion to the Green Climate Fund during the G20 Summit held in Australia this weekend.
Yesterday WRI's climate finance experts Alex Doukas and Athena Ballesteros blogged about how a U.S. pledge to the Green Climate Fund would build climate action momentum.
Why is the recent U.S. pledge to the Green Climate Fund important for a 2015 climate agreement?
Call it bad timing: Brazil’s greenhouse gas emissions intensity is rising while that of most of the G20 countries decreases, just as more infrastructure investment will be needed to support expected economic growth and social inclusion. Representatives of commercial banks in Brazil, the Brazilian Development Bank (BNDES), the Inter-American Development Bank (IDB), Brazil’s Ministry of Finance and others joined WRI experts to explore how they can collectively help the country make the transition to a low-carbon economy.
The Green Climate Fund (GCF) is the most ambitious climate finance fund thus far, with a goal of completely transforming sectors and economies toward low-emission, climate-resilient development.
Last week marked a key moment for climate finance: The last foundations were laid for the GFC, and it’s now ready to receive funding.
The Green Climate Fund (GCF) has a big role to play. It’s expected to become the world’s main mechanism for securing and distributing finance to help developing nations tackle climate change.
The multi-billion dollar question is: Can it live up to this expectation?
The UN Climate Summit will draw 125 heads of state and government to address the global challenge of climate change, the biggest gathering of its kind ever. Building on the excitement of the massive People’s Climate March on September 21, we should expect some movement on the key question of how to finance climate solutions.
Read more for forthcoming highlights.