Developed countries have just released a Delivery Plan on mobilising $100bn annually in climate finance for developing countries, to build assurances before COP26 begins in Glasgow.
The Plan shows recent pledges will bridge the gap of approximately $20bn, projecting the $100bn would be surpassed from 2023 onward, after being nearly attained in 2022, and exceeded thereafter.
The Plan shows that the 100bn will be met on average over 2021-2025, but developed countries were unable to agree to commit to averaging 100bn/year over 2020-25, a key ask of vulnerable countries ahead of COP26 next week.
Negotiations over a COP26 ambition acceleration deal to “keep 1.5C alive” must now agree a wider finance acceleration offer, on access, adaptation finance targets, coordinated efforts to mobilize trillions from the via finance platforms, and a robust launch to deliberations on a new post-2025 finance goal under the Paris Agreement framework.
Prepared by Canada’s Minister Jonathan Wilkinson and Germany’s State Secretary Jochen Flasbarth, the Delivery Plan is intended to provide confidence to developing countries that developed countries will meet their commitment to mobilise an annual $100bn in climate finance over 2020-25.
Formally commissioned by COP26 President-Designate Alok Sharma in July, the Plan also responds to similar requests from the UN Secretary General and V20 group of climate-vulnerable countries. The Delivery Plan process since July has seen various new countries, most notably the USA, come forward with new finance pledges.
Whereas OECD data shows that climate finance only reached $80bn in 2019, 20bn below the 2020 target, the new plan shows that the gap will be bridged by 2023, after being nearly attained in 2022, and would be surpassed thereafter. Using conservative assumptions for mobilization of private finance, the Plan estimates that climate finance could reach almost $120bn by 2025.