With $100 billion a year target far away, poorer countries demand climate finance promised by rich governments

On a day of negotiations dedicated to financing, the Green Climate Fund should resurface. Meanwhile, a global alliance announces more than R$730 trillion in private financing
On a day of negotiations dedicated to financing, the Green Climate Fund should resurface. Meanwhile, a global alliance announces more than R$730 trillion in private financing

Since before the start of the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), it was already clear that three major themes would guide the meeting of heads of state and representatives of more than 190 countries in Glasgow, in Scotland. The need to seek greater reductions in emissions, the regulation of the international carbon market and the financing of actions against the climate crisis for the poorest and most vulnerable countries dominate the discussions at the meeting that discusses commitments to curb global warming.

And “financing” is precisely the theme that should centralize the discussions this Wednesday (3/11), contemplating both help in reducing emissions and in the transition to a green economy. During the conference, the demand to the rich countries for not fulfilling the promises of financing actions in developing countries will return to the negotiating table, since the developed nations were the first to industrialize and emitted more greenhouse gases throughout history .

“The debates during the meeting will need to define more clearly where the resources come from, where they will be destined and what will be the money flows to finance the fight against climate change. This will be one of the biggest challenges. Without money, there will be no real change”, sais Felipe Borschiver, economist and senior climate finance consultant at the Global Climate Finance Innovation Laboratory, a project of the Climate Policy Center.

One of the main goals is to mobilize donations from developed countries, ensuring that they fulfill the promise made in 2009 to support developing countries with $100 billion annually in actions to mitigate and adapt to the climate. As a result, the objective of establishing a constant flow of resources through the Green Climate Fund (GCF) is not being fully met.

For Sergio Suchodolski, president of the Brazilian Development Association (ABDE), climate finance is essential, but developing countries also need, in addition to demanding compliance, to establish clear plans on what to do with these resources. For him, actions in this sense include supporting adaptation to protect and restore ecosystems, building defense mechanisms, warning systems and resilient infrastructure.

“Above all, we are on a journey. I don’t believe in a magic solution, especially in countries like Brazil. financial aid. But it is necessary to create effective mechanisms to work with these financings. It is not enough to have money: it is necessary to have concrete plans on what to do with it”, defines Suchodolski, also president of the Minas Gerais Development Bank (BDMG).

Suchodolski also highlights that another major goal is to mobilize joint action to help fulfill global purposes, strengthening collaboration between governments, companies and civil society.

Aliança announces more than R$730 trillion in private financing at COP26
A global alliance that brings together financial initiatives from around the world committed to the goal of zero net carbon emissions is expected to announce, on Wednesday, more than US$ 130 trillion (about R$ 730 trillion) of private capital committed to the transition to an economy green. These commitments, from more than 450 companies in 45 countries, could provide some of the financing needed to achieve a zero carbon future over the next three decades.

To support the deployment of this capital, the global financial system is being transformed through 24 key initiatives that have been delivered to the summit under the Glasgow Financial Alliance for Zero Net Emissions (GFANZ). The alliance highlights that these actions significantly strengthen the information, tools and markets necessary for the financial system to support the transformation of the global economy to net zero.

An analysis commissioned by the UN’s High-Level Climate Action Champions and released on Wednesday concluded that the private sector could deliver 70% of the total investments needed to achieve net zero targets.

“To keep the 1.5 °C target within reach, we need capital owners, managers and lenders to realign their business models with climate science. The core of the financial system is now publicly committed to this task. this, we are sure, will have a ripple effect across the global economy. Now we need governments to help get the job done by setting ambitious policies that can unlock, accelerate and help direct investment where it is needed most,” explained the Briton Nigel Topping, named by the UN as one of the High-Level Climate Champions for COP26, in an e-mail to One Planet.

All GFANZ initiatives will require signatories to set interim and long-term targets to achieve zero net emissions by 2050 at the latest, in line with the UN’s Race to Zero campaign criteria . These goals will be complemented by short-term goals and action plans determined by the members.

The GFANZ was launched by Mark Carney, UK Prime Minister’s Financial Adviser for COP26 and UN Special Envoy for Climate Action and Finance, in partnership with the UNFCCC Climate Action Champions, the UN Race to Zero campaign and the Chair of the COP26.

This story was originally published on Um So Planeta, with the support of Climate Tracker.

Guilherme Justino
Multimedia reporter working for Editora Globo in Brazil. Guilherme’s favorite areas to cover are Education, Health, Science and Sustainability. He’s an Earth Journalism Network (EJN) and International Center for Journalists (ICFJ) fellow and he’s won over a dozen national journalism awards, a number of them related to climate stories written over the years. Stories he publish are supported by his cats, Mia and Elias.