Where’s the Money? The Status of Climate Finance Post-Copenhagen - Climate Finance

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Introduction

When the dust settled after the near failure of the UNFCCC climate talks in Copenhagen, the issue of climate finance seemed strangely to have been one of the few areas, where despite all procedural and political misgivings, real progress was made. This is important, as finance is one of the most urgent issues that needs to be addressed in order to achieve a comprehensive post‐Kyoto climate agreement. In a last minute face‐saving political effort by a small group of 28 countries who negotiated the text at the request of the Danish COP presidency, the “Copenhagen Accord” was created as a compromise document.

However, it was neither endorsed nor voted on by the full Conference of Parties (COP) of the UNFCCC in Copenhagen; with the representatives of the 193 parties only “taking note”. Thus, global climate change negotiations face political and possibly legal uncertainty going forward. Some fear that the UNFCCC process has been seriously undermined and its ability to rally the world to a global agreement cast in doubt. Among developing countries, distrust is growing over the possibility that an elite club of countries might attempt to wrestle control over climate talks permanently away from the 193‐member body. These uncertainties and tensions play out as well in the area of climate finance. The “Copenhagen Accord” gives some clear promises and numbers for both short‐ and long‐term financial support by wealthier countries for developing countries, especially the most vulnerable, to deal with climate change. It pledges US$10 billion per year from 2010‐2012 with the promise to increase to US$100 billion per year starting in 2020. However, as the Accord is a nonbinding political agreement, many questions about if and how those commitments can be fulfilled are yet to be answered.

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More information about bilateral and multilateral climate funds and funding expenditures at www.climatefundsupdate.org