OCED: Developed countries fail to meet $100 billion climate funding target for developing nations

UNITED NATIONS: A recent report by the Organisation for Economic Cooperation and Development (OECD) revealed that developed countries have not fulfilled their pledge to jointly mobilize $100 billion annually towards the climate mitigation and adaptation needs of developing countries.

The report stated that the developed countries were one year past the 2020 deadline and had only provided and mobilized $89.6 billion in 2021. In 2009, developed countries had promised to transfer $100 billion per year to poorer nations that are hit by worsening climate change-fueled disasters, starting from 2020. However, wealthy nations had previously signaled that the target would not be met until 2023.

Mathias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development (OECD) said, “Developed countries fail to meet $100 Billion climate funding target for developing nations. It is far below poor nations’ actual climate investment needs, which by 2025 could total $1 trillion per year.”

Tina Stege, climate envoy for the Marshall Islands, a nation vulnerable to rising sea levels mentioned that, “The delivery of the $100 billion is vitally important.”

She further added, “From building sea walls to adapt to climate change, to installing renewables, to helping people rebuild their lives and livelihoods if they’re forced to move – all of these things cost money.”

The report confirmed that the target was not met in 2021, and only $89.6 billion was provided by wealthy nations. The amount was just an eight percent increase from 2020 levels. Moreover, most of the money was public finance, and more than two-thirds were loans. The report warned that this funding, which comes from sources like multilateral development banks and national aid agencies, has so far failed to mobilize significant private capital that is needed to bridge the climate investment gap.