Rich countries met $100bn climate-finance goal by ‘relabelling existing aid’ – Carbon Brief
Rich countries met $100bn climate-finance goal by ‘relabelling existing aid’ Carbon Brief
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Analysis of Climate Finance Goals and Sustainable Development
Reclassification of Foreign Aid as Climate Finance
An analysis has revealed that a significant amount of foreign aid has been reclassified as “climate finance,” allowing wealthy countries to meet their climate aid targets. This reclassification contributed to the reported achievement of a $100bn climate aid goal for developing countries in 2022, which was initially set for 2020.
Achievement of the $100bn Climate Aid Goal
The Organisation for Economic Co-operation and Development (OECD) reported that developed nations raised $115.9bn for climate-related projects in 2022. However, the Center for Global Development (CGD) suggests that approximately $27bn of this increase came from existing development aid funds.
Expectations of “New and Additional” Climate Finance
There is an expectation that wealthy countries should provide climate finance that is “new and additional” to existing aid. However, some developed countries have been able to meet their climate targets by redirecting funds from their broader aid budgets, raising concerns about the integrity of their commitments.
Pressure to Increase Climate Spending
Developed nations face pressure to significantly increase climate spending in the global south. At COP29, a new climate target will be discussed to help raise the necessary funds for addressing climate change.
Largest Increase in Climate Finance Observed
In 2022, climate finance saw its largest year-on-year increase, with a significant portion coming from loans. This has led to concerns about the debt burden on global south countries.
Deciding on a New Climate-Finance Goal at COP29
Countries will negotiate a new climate-finance goal at COP29, which is expected to exceed the $100bn target and reflect the actual needs of nations.
Diverting Funds from Existing Development Aid
The CGD analysis indicates that a portion of the increase in climate finance can be attributed to the redirection of existing foreign-aid budgets. This practice raises questions about whether developed countries are genuinely committing new resources to climate finance.
Concerns Over Creative Accounting and Fiscal Loopholes
Experts warn that developed countries are using creative accounting and fiscal loopholes to meet their climate finance targets. There is a call for a clear definition of what constitutes “climate finance” to prevent such practices.
- Billions in foreign aid reclassified as climate finance to meet targets.
- Developed nations claim to achieve $100bn climate aid goal for 2022.
- OECD reports record surge in spending; CGD analysis questions sources.
- Wealthy countries expected to provide “new and additional” climate finance.
- Pressure mounts for increased climate spending in the global south.
- Largest increase in climate finance driven by loans, raising debt concerns.
- New climate-finance goal to be decided at COP29.
- Funds diverted from existing aid budgets to meet climate targets.
- Calls for clear definition of climate finance amid creative accounting concerns.
SDGs Addressed in the Article
The article addresses several Sustainable Development Goals (SDGs), specifically:
- SDG 13: Climate Action
- SDG 17: Partnerships for the Goals
Specific Targets Under the SDGs
Based on the article’s content, the following targets can be identified:
- Target 13.A: Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation.
- Target 17.3: Mobilize additional financial resources for developing countries from multiple sources.
Indicators in the Article
The article implies certain indicators that can be used to measure progress towards the identified targets:
- Indicator for Target 13.A: The amount of climate finance provided and mobilized by developed countries in USD per year.
- Indicator for Target 17.3: The amount of foreign aid reclassified as climate finance.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 13: Climate Action | Target 13.A | The amount of climate finance provided and mobilized by developed countries in USD per year. |
| SDG 17: Partnerships for the Goals | Target 17.3 | The amount of foreign aid reclassified as climate finance. |
The article discusses the issue of developed countries meeting their climate finance targets, potentially through reclassification of existing foreign aid rather than providing new and additional funding. This practice is relevant to SDG 13, which includes a target for mobilizing $100 billion annually for climate action in developing countries, and SDG 17, which emphasizes the importance of mobilizing financial resources for sustainable development. The indicators mentioned or implied in the article include the total amount of climate finance provided and mobilized by developed countries and the amount of foreign aid reclassified as climate finance, which can be used to assess progress towards these targets.
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Fuente: carbonbrief.org
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