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What is the news? As per a recent report published by Oxfam, developed countries’ pledge to provide $100 billions of annual financing, made over a decade ago is unlikely to be met even five years after the target i.e. by 2025. This threatens the aim of limiting global warming to 1.5 degree Celsius as part of the Paris Agreement.
What is the present scenario of funding? Recent data from the OECD has showed that the pace of boosting the funding slowed further in 2019, growing just 2% to $79.6 billion from 2018.
Data wasn’t available for 2020, by when the $100 billion annual rate was to be achieved, but the economic damage wreaked by the pandemic means that target was likely missed.
What are the various findings of the report? First, funding is key for developing nations to pledge deeper emissions cuts.
Second, concerns have been raised about how the financing will be disbursed to developing nations. Over two-thirds will be in the form of loans, which would put the countries into further debt.
Third, US is facing the biggest fund crisis, because former U.S. President had pulled the world’s richest polluter out of the Paris deal. France, Australia and Japan have failed to increase their financing for poorer nations.
Source: This post is based on the article “ Rich nations to miss $100 bn climate fund goal even by 2025 , says Oxfam ” published in the Business Standard on 21st September 2021.
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