Biden’s finance pledge inadequate for climate justice | News | Eco-Business

In the run-up to the Leaders Summit on Climate called by Joe Biden on 22-23 April, the US President has asked Congress for USD 2.5 billion for international climate financing, including USD 1.2 billion for the Green Climate Fund (GCF), the body set up by the UN to help developing countries combat climate change. But activists have said the amount is “not enough” to make up for lack of support during the Trump years. Developing countries do not seem impressed either.

During the presidency of Barack Obama, the US had promised USD 3 billion to the GCF, but only 1 billion had been paid before Donald Trump withdrew his government’s support altogether. Activists are now pointing out that Biden’s promised USD 1.2 billion falls well short of the USD 2 billion the country already ‘owes’.

Research non-profit the World Resources Institute said Biden’s moves on finance were a good first step, but much more needed to be done. Meanwhile, 40 Democratic congressmen wrote to Biden in March, asking him to give USD 4 billion to the GCF this financial year: the 2 billion “outstanding” and an additional 2 billion as the first tranche of a fresh USD 6 billion pledge.

The global view – state funds needed for climate solidarity

Emerging economies feel the amount promised by Biden is inadequate, though their criticism has been levelled at all developed countries. At a virtual meeting of the BASIC (Brazil, South Africa, India, China) countries on 8 April, “Ministers expressed their deep concern on the insufficiency and inadequacy of the support provided by developed countries to date. The scale and speed of climate finance from developed countries has to increase considerably,” according to their joint statement. 

When he visited New Delhi on 8 April, Senator John Kerry, the US President’s special climate envoy, did not get an assurance that India would declare a target year by which it would become a ‘net zero’ emitter of greenhouse gases. But the two countries agreed to jointly mobilise financing for clean energy projects and for adaptation to climate change impacts.

Such assurances may be significant for emerging economies. For example, large scale solar power took off in India a decade ago because a US Export-Import Bank guarantee enabled the initial projects to borrow money. But this is not enough for smaller developing countries, who are therefore keener on financing from governments of developed countries rather than private players.

A group of relatively small developing countries that has come together under the umbrella of ‘climate-vulnerable nations’ took on rich countries in early April at a virtual meeting hosted by the UK. Bangladesh is a leading member of the group. The group pointed out that of the little public funding available, only 20 per cent goes to adaptation, despite this being the immediate need of developing nations. The UK government promised to take up the matter at a meeting of the G7 nations they are hosting in June.

From New Delhi, Kerry travelled to Dhaka, Bangladesh, where he spoke of already-committed financing of up to USD 17 million for clean energy projects. Other developing countries are hoping for similar or larger financial support.

Summit may resurrect debate on climate finance

So far, criticism of Biden’s financial plan has been muted beyond the activists’ corner. But it is unlikely to remain so when negotiations restart under the UN Framework Convention on Climate Change (UNFCCC) prior to and during the next UN climate summit, known as CoP26, scheduled to be held in Glasgow in November 2021.

Ministers of the BASIC countries have urged developed nations to enter CoP26 talks with a clear plan on how they intend to fulfil their promise to provide USD 100 billion per year, at least from 2021 to 2025. This promise dates from 2009, when then-US Secretary of State Hillary Clinton pledged that developed…