Wealthy Nations Commit $9.3 Billion to Climate Fund During Gathering in Germany

06 Oct, 2023

Wealthy Nations Commit $9.3 Billion to Climate Fund During Gathering in Germany

Developed nations have committed $9.3 billion to support developing countries in addressing climate change at a conference held in the German city of Bonn. However, some non-governmental groups have expressed dissatisfaction, stating that the pledged funds are insufficient to effectively combat climate change.

These pledges are aimed at replenishing the Green Climate Fund, headquartered in South Korea, which was established in 2010 to provide financing to developing nations. It is the largest fund of its kind, intended to assist poorer countries in reducing emissions, adapting to climate change impacts, and transitioning to clean energy.

The funds pledged during the Bonn conference will be used to finance projects in developing and emerging nations from 2024 to 2027. The sole commitment from the German government amounted to 2 billion euros, equivalent to $2.1 billion.

Twenty-five countries made fresh pledges during the conference, while five indicated that they would announce their commitments in the near future. It is expected that the total amount pledged will exceed the reported $9.3 billion, as indicated by the German Foreign Ministry and the German Ministry for Economic Cooperation and Development.

Notably, three-quarters of contributing states increased their pledges compared to the previous donor conference in 2019, including Germany, Austria, and France. Denmark, Ireland, and Liechtenstein doubled their contributions.

While there was no mention of pledges from the United States, it's worth noting that President Joe Biden had previously announced $1 billion in new climate finance for developing nations during a virtual climate summit held at the White House in April.

However, civil society and non-governmental organizations have criticized these commitments, arguing that they do not meet the necessary funding levels to address the impact of climate change on vulnerable communities in developing nations.

Harjeet Singh, Head of Global Political Strategy of the Climate Action Network International, criticized wealthy countries for their lack of enthusiasm toward the Green Climate Fund, which is envisioned as a crucial instrument for climate action in developing nations.

The absence of the United States' commitments has also drawn attention, and the issue of financial support for poorer nations is expected to be a central topic during the upcoming UN Climate Change Conference, COP28, scheduled to begin in Dubai at the end of November.

Sultan Al Jaber, President-designate of COP28, emphasized the need for more ambitious and adequate replenishment of funds to address the growing climate challenge, particularly for vulnerable communities.

German Minister for Economic Development Svenja Schulze, who hosted the Bonn conference, called upon both traditional donor nations and emerging economies, such as Gulf states and China, to take responsibility and contribute their fair share to the financial effort in addressing climate change.