WASHINGTON (October 25, 2021)—Today, the governments of Canada and Germany published a ‘Delivery Plan,’ commissioned by the incoming COP26 President, that outlines how developed countries plan to meet their joint commitment of mobilizing $100 billion in climate finance for developing countries annually from 2020 to 2025. This quantified long-term finance element of the Paris Agreement recognizes common but differentiated historical responsibility for climate change as well as developing countries’ need for support to take climate action.
Following is a statement from Lorena Gonzalez, senior associate, WRI Finance Center:
“This ‘Delivery Plan,’ developed under the leadership of Minister Wilkinson from Canada and State Secretary Flasbarth from Germany, is a key step toward ensuring developed countries rapidly scale up climate finance.
Though developed countries pledged twelve years ago to mobilize $100 billion in climate finance annually by 2020, the ‘Delivery Plan’ confirms it is unlikely that they delivered the requisite contributions last year. Developing countries need finance now so that they can invest in climate action to shift their economies’ long-term trajectory, as well as deal with mounting climate impacts.
Developing countries deserve to see a clear, credible and robust plan for realizing the pledge. The Delivery Plan published today is an important start, especially in outlining a path to achieving an average of $100 billion per year for the period 2021-2025, but does not address the likely shortfall from 2020. Building on this, developed countries and multilateral development banks need to ramp up commitments so that the $100 billion per year goal can be met before the expected 2023 date. They should also recognize that the $100 billion is a floor and not a ceiling.
Most developed countries have not yet mobilized finance in accordance with their fair share. The United States is responsible for the greatest shortfall, and Australia, Canada, Italy, Greece, Iceland, and Portugal, among others, must do more.
Developed countries should continue to work toward a robust and credible collective strategy to deliver on this long-standing commitment as soon as possible, making up for any shortfalls—including those from 2020—and strengthening reporting and adaptation finance.
As a pillar of the Paris Agreement, much stands on climate finance. The stronger this pillar, the stronger the Agreement and the faster and further we can move toward rapid decarbonization and enhanced adaptation and resilience that will save lives and promote human livelihood around the world.”