Rich countries failed to boost the amount of cash pledged towards the Green Climate Fund on Friday, after can not mitigate Donald Trump's refusal to supply green finance.
The Green Climate Fund (GCF), which was created to help poor countries curb their emissions and deal with the impacts of climate change was seeking fresh contributions to replenish its funding, because of run-out after the year.
A total of 27 countries raised $9.8 billion in a pledging conference in Paris to finance green projects for that 2023-2023 period – including 4% in zero-interest loans. Which was less than the $10.3bn donors promised for the first period to 2023 and not enough to fund the $15bn pipeline of projects recognized by the GCF as of December 2023.
In 2023, under Barack Obama's administration, the US pledged $3bn towards the fund – the largest pledge to the fund. Mr . trump reneged around the US commitment to the tune of $2bn.
Both the US and Australia said they would not pledge new money to the GCF, leaving smaller Countries in europe together with Japan, Canada and Nz to pay for any $3.2bn hole. They fell around half a billion short.
To bridge the gap, 13 countries announced a doubling or more of the contributions: Germany, Norway, France, UK, Sweden, South Korea, Denmark, Iceland, Poland, Nz, Luxembourg, Ireland and Monaco.
Before the conference, the GCF said contributions totalling between $9bn and $10bn would be “a big success” after 16 countries pledged $7.4bn within the lead up.
Praising the meeting's outcome, Yannick Glemarec, GCF executive director, told reporters: “We came to Paris wondering whether this conference will be a success or a big success. We managed to get to nearly $10bn however i can't express it was easy,” citing countries' “important budgetary constraints”.
“We are honoured through the global community's confidence in the fund's capability to support countries and communities to boost and realise their climate ambitions,” he added.
New Zealand announced a fivefold increase of their contributions, having a pledge of $15 million and Slovenia was a very first time donor towards the fund.
Japan renewed its previous $1.5bn commitment. Russia, which gave $3m in 2023, was present in the pledging conference, but did not promise any money without ruling out contributing to the fund at a later date.
The pledging conference took place a day after Russian president Vladimir Putin hosted a large number of African heads of states in the resort town of Sochi around the Black Sea to discuss prospective energy and infrastructure deals, largely using the oil, gas and nuclear industries.
Rachel Kyte, the former UN secretary general's special representative for sustainable energy, congratulated the GCF for “a big lift”.
“The board needs to get more serious about the mission amid a climate emergency – perform the things other pots of money can't/won't do, wisely. Otherwise we reflect that $10bn is a pittance in contrast to what's misused every day.”
Armelle Le Comte, climate and energy advocacy manager for Oxfam, welcomed the doubling of some countries’ contributions but denounced others’ “token gestures” and “contributions far below their fair share”, urging for enhanced pledges to make ahead of the UN climate talks in Chile in December.
