PLEA Network

30 May 2024, Carbon Brief: Rich countries met $100bn climate-finance goal by ‘relabelling existing aid’, Billions of dollars of foreign aid have been reclassified as “climate finance”, thereby helping rich countries to meet a long-overdue target, according to new analysis. Newly released figures suggest that developed nations achieved their goal of raising $100bn in climate aid for developing countries in 2022 – two years after the deadline. The Organisation for Economic Co-operation and Development (OECD) says these countries raised $115.9bn for climate-related projects, following a record surge in spending. However, analysis conducted by the Center for Global Development (CGD) and shared with Carbon Brief suggests that around $27bn of the $94.2bn annual increase in public climate funds in 2022, compared to figures two decades ago, came from existing development aid. Specifically, the CGD identified at least $6.5bn of climate aid within the record 2022 increase that was diverted from other bilateral development aid programmes. This is despite the widespread expectation that wealthy countries should provide climate finance that is “new and additional”. Such accounting changes could allow some developed countries to reach their climate targets, even while slashing their wider aid budgets. Meanwhile, wealthy nations are under pressure to rapidly increase climate spending in the global south. At COP29 this year, all parties must agree on a new climate target that will help raise the trillions of dollars these nations say they need to address climate change. ‘Largest increase’ The $100bn target was set in 2009 at COP15 in Copenhagen to help developing countries cut their emissions and protect themselves from climate change. A group of “developed” countries, including many European nations, the US, Canada, Japan, Australia and New Zealand, agreed to “mobilise” this amount by 2020 and then each year through to 2025. This money largely comes from countries’ foreign-aid budgets, which finance climate-related development projects. A smaller proportion is also raised from the private sector. Crucially, countries have determined during UN climate negotiations that climate finance should be “new and additional”. This is widely interpreted as meaning the $100bn objective should all be supplied on top of existing aid, although such an interpretation has sometimes been contested by developed countries. Developed countries failed to hit the $100bn goal by 2020, raising just $83.3bn that year. This was poorly received by developing country governments, who view this money as essential to meet their climate targets under the Paris Agreement. Read more here