What is Climate Finance?
International climate finance is the transfer of funds from the North to the South to help enable developing countries to deal with the impacts of climate change, shift to equitable and sustainable development pathways, and embark on clean energy development paths.
In keeping with the “polluter pays” principle and the recognition of the North’s historical responsibility for causing the climate crisis and corresponding obligations to address it, developed countries are responsible for the climate crisis must provide climate finance.
Civil society groups are calling for the provision of climate finance as part of reparations for the climate debt that the North owes to the South and as recognition of a legal obligation under the United Nations Framework Convention on Climate Change (UNFCCC).
- Finance commitments to the South must be through public funds, and not in the form of loans or private investments.
- Finance of a scale to match the need for both adaptation to climate impacts and for supported public mitigation actions in the South – a figure amounting to hundreds of billions of dollars a year.
- The Green Climate Fund to act under the authority of the UNFCCC.
- The World Bank playing no role in the The Green Climate Fund.
- The use of innovative sources of finance such as: financial transaction taxes, special drawing rights and redirecting fossil duel subsidies.
For the latest updates on issues in climate finance click here. For more information please see:
- Climate Justice Brief on Finance ( Esp ) ( Arabic )
- Cochabamba People’s Agreement Final Conclusions on Finance
- Bonn Brief – Current state of finance commitments
- Bonn Brief – Innovative sources for climate finance
You may also be interested in the following sites:
- Bretton Woods Project
- Institute for Policy Studies – Sustainable Energy and Economy Network