How Can the World Secure $100 Billion in Climate Finance?
Thursday, June 4, 2015
The Bonn Climate Change Conferencehas just begun, the G7 Summit is just a few days away, and the COP21 United Nations climate conference is fewer than six months away. International leaders are negotiating many issues, but one topic will be at the center of all three – providing a pathway to reach the COP15 decision of securing $100 billion of climate finance annually by 2020.
New analysis from WRI shows a credible and politically balanced path towards $100 billion in 2020 is possible by including a larger set of climate finance sources in a balanced way while scaling up all public finance.
Getting to $100 Billion: Climate Finance Scenarios and Projections to 2020 is one of the first quantitative analyses of realistic funding scenarios to achieve the $100 billion goal. It shows that if all considered sources are included, climate finance could total $109 to $155 billion in 2020 under projections of low-medium growth and leverage.
Importance of the $100 Billion by 2020 Goal
At COP15 in Copenhagen in 2009, developed countries committed to a goal of jointly mobilizing $100 billion dollars a year by 2020 from a “wide variety of sources, public and private, bilateral and multilateral, including alternative sources of finance.” However, five years later, ambiguity remains on the sources, instruments and channels that will enable developed countries to achieve this goal.
Forging an agreement on the path to $100 billion is essential to build trust and bring countries together ahead of this December’s climate conference in Paris. Although the Paris agreement is centered on the post-2020 period climate regime, political agreement on post-2020 finance is unlikely as long as developed countries have not provided a pathway to honor the commitment made in Copenhagen on the pre-2020 period. And, developing countries are unlikely to sign an agreement in Paris without strong provisions for predictable and adequate climate finance. Defining a realistic and politically acceptable way to achieve the $100 billion is a critical condition for a successful Paris agreement.