Climate change: rich nations hit overdue US$100 billion climate fund goal in 2022

Wealthy nations have finally achieved their long-delayed commitment of providing $100 billion in climate finance to developing countries in 2022. This target, which was supposed to be met by 2020, is crucial even though it's small compared to the trillions needed for developing nations to transition away from fossil fuels and adapt to climate change. The achievement could foster trust before the upcoming COP28 summit in Dubai. Officials from Canada and Germany emphasize the importance of fulfilling past financial promises to set a positive tone for future climate discussions, with a firm intention to deliver the full amount by the end of 2023.

However, the Organisation for Economic Cooperation and Development (OECD) reported a decrease in adaptation funding by $4 billion in 2021, down to $24. 6 billion. At the COP26 conference, countries pledged to double adaptation finance. Investments in adaptation, such as constructing sea barriers and safeguarding infrastructure, are less appealing to funders compared to renewable energy projects due to lower financial returns. Climate negotiations are expected to establish a new collective climate finance goal beyond 2025. The OECD projects that developing countries will require about $1 trillion annually in climate investments soon, increasing to $2. 4 trillion each year by the decade's end, necessitating significant private sector involvement.

Mohamed Adow from Power Shift Africa warns against complacency following the $100 billion achievement, stressing that developing nations still lack sufficient resources for on-the-ground climate action. The international community is also looking to initiate a new fund to address loss and damage from extreme weather events, with the EU and the US committing to contribute. The US, historically the largest emitter of greenhouse gases, has faced criticism for not meeting its climate finance pledges. Despite President Biden's promise to increase climate finance, he faces opposition within Congress. In 2022, the US contributed nearly $6 billion in climate finance, with grants making up a portion of this funding.