WASHINGTON (September 21, 2021)—President Joe Biden announced he would double the United States’ previous climate finance pledge made in April 2021. This should amount to the United States delivering $11.4 billion a year by 2024 in public finance to developing countries to support climate action.
The Biden administration’s prior announcement on climate finance was that the U.S. would provide $5.7 billion in climate finance annually by 2024, less than a quarter of what European Union countries were already contributing in 2019.
Last week, the OECD estimated that as of 2019, developed countries had mobilized $79.6 billion of the $100 billion per year commitment for financing for developing countries from 2020, which was made at the Copenhagen climate talks over a decade ago. The world will need far more financial resources to shift to a more sustainable path and support countries facing climate impacts today.
Following is a statement from Helen Mountford, Vice President, Climate & Economics, World Resources Institute:
“This is a welcome, much-needed demonstration of the commitment by the United States to global climate action and solidarity. It will help accelerate the transition to a cleaner, more sustainable economy and help developing countries to build resilience and adapt to the mounting climate impacts striking around the globe. It should also provide a positive jolt ahead of COP26, at a time when international solidarity is badly needed.
“Much more finance will be needed to support developing countries as they pursue low-carbon, climate-resilient development. This will require trillions of dollars of investment to be shifted and mobilized globally to ensure a rapid transition to a carbon-free, inclusive and resilient economy. These funds can be used to support access to clean and affordable energy, expand sustainable transport, and reduce deforestation and land degradation in developing countries. Without these resources, we all face the risks of greater disruption and instability.
“Climate finance is a central tenet of the Paris Agreement and the U.S. is taking an important step toward making good on its share of responsibility to meet the $100 billion commitment.
“Looking forward, President Biden should work with the U.S. Congress to assure that these funds can be credibly delivered, addressing concerns about access to funds. The U.S. should also significantly increase its share of adaptation finance in line with the Paris Agreement goal to balance the finance provided between mitigation and adaptation. The U.S. should work with peers to set a clear path to deliver the $100 billion annually, and work with all countries to establish a robust process to set a new, post-2025 climate finance target, including greater transparency and reporting.”