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Where does the world stand on climate finance?

Cyclone Sitrang in Bangladesh flooding the streets of Dhaka

Cyclone Sitrang in Bangladesh, © NurPhoto

28.10.2022 - Article

Climate finance plays a key part in mastering the impact of climate change. Germany is making its contribution: 8.1 billion euro in 2021. Today the Progress Report on the Climate Finance Delivery Plan was published.

The industrialised countries have a responsibility to help developing countries with climate change mitigation as well as with measures to adapt to climate change. In 2009, the industrialised countries therefore pledged to collectively provide 100 billion US dollars each year from 2020 onwards. Unfortunately, there is still a gulf between ambition and reality: in 2020, collective climate finance amounted to 83.3 billion US dollars.

The Climate Finance Delivery Plan drafted on behalf of the COP26 Presidency identified ten key areas in which further action is necessary in order to reach the target as quickly as possible. Jennifer Morgan, State Secretary and Special Envoy for International Climate Action, collaborated with Canada’s Environment Minister, Steven Guilbeault, on a Progress Report drafted on behalf of the COP26 Presidency. It shows what has happened so far and which concrete steps are now necessary to reach the joint climate finance target.

The report focuses on four key areas:

  1. increasing adaptation financing
  2. improving access to climate finance
  3. cooperation with multilateral development banks
  4. enhancing efficiency in mobilising private climate finance

State Secretary Jennifer Morgan issued the following statement to mark the publication of the report:

The urgency of the climate crisis means climate finance needs to better respond to the challenges now faced by developing countries. Our Progress Report showcases the richness of activities underway, but also highlights where more action is needed - on access to finance and clarity on the collective doubling of adaptation finance. On the latter, we are glad to be able to clarify a common understandinig that we are doubling towards $40 billion by 2025 at the latest and showcase first efforts towards this.

As contributors, and as shareholders of Multilateral Development Banks, we need to continue working together to push for a global financial system that is fit for tackling the climate crisis and incentivises investments in green and resilient development.

We understand that $100 billion remains a key benchmark for trust, and hope that this report proves the seriousness with which developed countries are working to deliver the full amount by next year. As Germany we are glad to be making strides in our contribution to climate finance - in 2021 mobilizing $8.1 billion.“

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