At the COP26 climate summit in Glasgow, some bold agreements began to reduce methane and carbon emissions. Likewise, great powers have made new commitments to increase financing and help developing countries deal with the effects of climate change.
The funding issue has been questioned by developing countries and activists due to non-compliance. Some climate experts have deemed the $100,000 million annually to benefit from combating climate change in these countries as insufficient.
In this regard, finance ministers met in Glasgow to discuss allocating funds for rapid and large-scale climate action. In line with the new commitments of developed countries at the United Nations Climate Summit.
The UK has welcomed the offer of $130 trillion in private funding, with scientific decarbonization targets. Through the Glasgow Financial Alliance for Net Zero, the right funding for it is essential to limiting the rise in global temperatures to 1.5°C.
“Today there is more public and private funding for climate action than ever before,” said Alok Sharma, President of COP26.
But to meet the commitments made in the Paris Agreement and keep 1.5 alive, we need developed countries to comply with public funding. Unlocking the trillions of dollars of private investment needed to create a net-zero future. Thus, protecting lives and livelihoods from the devastating effects of climate change. This is why we have made funding a major focus of COP26.”
Financing countries to mitigate climate change
At this global climate event, many countries made new commitments to raise finance and help developing countries deal with the effects of climate change.
Some concrete actions have already been produced through the discussion of Finance Ministers. It’s the case of 450 companies from 45 countries that control 40% of global financial assets, committed to investing $130 trillion (112 trillion euros) in the transition towards a decarbonized economy by 2050.
Similarly, countries like Norway have committed to triple their funding for this adaptation, while Japan and Australia will double it. But Sharma admitted that he “deeply regrets” that the richer countries did not live up to the promise of the Paris Agreement to fund $100 billion a year for developing countries. Although he announced that they are “close” to fulfilling their promise. Last weekend, G-20 leaders agreed once again to achieve this goal.
On the other hand, the UK has proposed asking the country’s large companies and financial institutions to show how they intend to achieve climate change mitigation goals. Specifically, it will be in 2023 that they will have to make detailed public plans on how to reduce their carbon emissions.
British Finance Minister Rishi Sunak said they are “going to compel companies to publish a clear plan on how to decarbonise. And moving towards net zero emissions with an independent working group will determine what is needed”.
Capital funds to tackle the climate crisis
Finance ministers have also argued that billions of dollars in public funding should be used to tap trillions of dollars in private funding. A clear and climate-resilient future is needed, and how to help developing countries access this financing to address the impact of climate change.
The United States, the European Commission and the United Kingdom also pledged to work in partnership with countries to support resilient and environmental recovery from COVID-19. and promoting investment in clean and green infrastructure in developing countries.
The initiatives announced by the World Bank Group and the Asian Development Bank will share the risk with developing countries. They will aim to raise up to $8.5 billion in new financing to support climate action and sustainable development. A new and innovative financing mechanism has also been launched: the Climate Investment Funds Capital Markets Mechanism (CCMM). It is expected to boost investment in clean energy such as solar and wind energy in developing countries.
Private financial institutions have also taken an important step to ensure that current and future investments are in line with the global goal of net zero.
Thirty-five countries have agreed to mandatory measures to ensure investors have reliable information about climate risks to direct their investments towards greener areas. They welcomed the announcement of a new international body, the International Sustainability Standards Board (ISSB).
More than $130 billion in private funding is now committed to decarbonization through the Glasgow Financial Consortium for Net Zero, led by Mark Carney.
Rich countries cooperate with the weak
Funding for poor countries to tackle climate change has increased. Canada has pledged to allocate 40% of its climate funding to these countries. New climate finance proposals were also received from the United Kingdom, Spain, Japan, Australia, Norway, Ireland and Luxembourg. It is based on the plan established prior to COP26 to provide $100 billion annually.
To combat the difficulties many countries have with bureaucracy, $134.9 million in new British funding has been announced. To support the approach of the Working Group on Access to Climate Finance, co-chaired with Fiji.
The task force launched an alliance with five “leading countries”. They are Bangladesh, Fiji, Jamaica, Rwanda and Uganda. The coalition seeks to help them and their communities get the funding they need for their climate plans.
Meanwhile, the Scottish government has pledged $1.4 million to support victims of the climate catastrophe. In the world of the first representatives of weak states hope to inspire others to follow. At COP26, Scottish leader Nicola Sturgeon said her government would partner with the Climate Justice Resilience Fund. To address the losses and damages caused by climate change.
Sonam Wangdi of Bhutan, who chairs a group of 46 least developed countries, said Key Climate News The group was “extremely pleased” with the Scottish government’s announcement.
Six years ago in the Paris Agreement, all nations agreed to address “losses and damages associated with the effects of climate change”. But the rich countries broke the agreement. Hopefully, these financial promises will not fall by the wayside or with good intentions.
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