Rich Countries Finally Reach $100bn Climate Finance Goal

So, guess what? Rich countries have finally hit the $100bn climate finance goal, but get this, it’s two years late! According to the Organisation for Economic Co-operation and Development, about $89.6bn was given to developing countries in 2021. And you won’t believe this, it’s likely that the number has gone over $100bn in 2022. That’s an 8% increase from 2020, when it was at the upper end of OECD estimates. The report says that the amount delivered this year will almost certainly be more than $100bn.

The pledge of $100bn a year was made way back in 2009 at the Copenhagen climate summit. The idea was to help poor countries cut their greenhouse gas emissions and adapt to the effects of the climate crisis. But here’s the kicker, the rich countries promised to deliver the amount by 2020, and they missed the deadline by a long shot. This has caused a lot of tension in global climate talks, with poor countries accusing the rich of being untrustworthy. But hey, the good news is that the promise has finally been met, and that’s a big deal for the upcoming Cop28 UN climate talks in Dubai.

Steven Guilbeault, the climate and environment minister of Canada, is pretty stoked about it. He said that having this information shows that they’ve met the goal, and it’s a major milestone. But, there’s still more to be done. Jennifer Morgan, a climate envoy for Germany, agrees that it’s a step forward, but they can’t stop there. Ani Dasgupta, the president of the World Resources Institute thinktank, thinks it’s a welcome ray of sunshine that will help rebuild trust between developing and developed countries.

Now, here’s the real deal. The effects and urgency of the climate crisis have grown massively since 2009. Greenhouse gas emissions and global temperatures are on the rise, and extreme weather, heatwaves, floods, droughts, and sea level rises are hitting hard. Research shows that developing countries will need about $2tn a year by 2030 to shift their economies to a low-carbon footing and adapt their infrastructure to extreme weather. That’s a whole lot of money, and it’s time for the conversation to shift towards mobilising 10 or 15 times as much. The trillions needed won’t all come from overseas aid, but mostly from the private sector. The challenge now is to redirect the money from fossil fuels to low-carbon ends. Sultan Al Jaber, the president-designate of the Cop28 talks, is encouraged by the announcement, but he’s calling for further ambition and for donor countries to live up to their past commitments. So, there you have it, folks. The $100bn goal has been met, but there’s still a long road ahead.