Tracking Finance Flows Is Essential to Addressing Climate Change
Updated: Jan 28, 2021
As the international community works to strengthen the global response to climate change, there is a strong recognition that choices on how funds are invested will be critical to whether or not we will be successful in “stabiliz[ing] greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system,” as called for by the United Nations Framework Convention on Climate Change (UNFCCC).
Accordingly, Section 2.1c of the Paris Agreement aims to: Mak[e] finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. Likewise, under the Cancun Agreements in 2010, recognizing developing countries could not meet their mitigation and adaptation goals independently, developed countries committed to a goal of jointly mobilizing USD 100 billion per year by 2020 to meet the finance needs of developing countries. These funds would come from a combination of public and private, bilateral and multilateral sources. Work is expected to begin at COP26 in Glasgow towards a new goal by 2025 that will increase the developed country commitment to international financial support.