Developed world falls short of $100B commitment to help poorer countries fight climate change: report

The developed world has failed to deliver on its commitment to send some $100 billion a year to help poorer countries fight climate change and reduce greenhouse gas emissions, according to a new report jointly drafted by Canada and Germany ahead of the COP26 summit.

The report, prepared by Environment Minister Jonathan Wilkinson and his German counterpart, Jochen Flasbarth, documents the progress richer countries have made to date in financially supporting other countries with climate change mitigation efforts, but notes the 2009 goal to deliver $100 billion US a year in support by 2020 was almost certainly not met and more aggressive action is needed over the next half-decade to spur change.

The U.K., the host of COP26 in Glasgow, Scotland, tasked Canada and Germany with preparing this report ahead of the crucial climate summit to help identify the developed world's shortcomings and propose solutions to meeting the long-promised financial target.

The $100 billion annual commitment was first made more than a decade ago at COP15 in Copenhagen, Denmark, based on the recognition that the developed world is largely responsible for producing climate change-causing emissions that have now disproportionately affected poorer countries.

The money was pitched as a way to right past wrongs and strengthen collective action to combat climate change — it was also a crucial bargaining chip to get some lower income countries in the "global south" to sign on to emissions-reduction targets set at the Paris climate summit in 2015.

"Over the past several months, we have heard rising concerns that the $100 billion US goal was not met in 2020. We share the disappointment about this," Wilkinson and Flasbarth write in the report titled "Climate Finance Delivery Plan." "The significance of meeting this goal cannot be overstated."

At a press conference Monday, Wilkinson said that by falling short of the financial commitment, the developed world has "eroded trust."

"We have done a lot collectively but we fell short. Delivering on the $100 billion is essential to keeping trust on all sides," Flasbarth said.

But, the two men said, since Canada and Germany set out to track progress on this financial commitment, some countries have already stepped up with more money than originally planned, which means the developed world may actually meet its original target in three years' time.

"There have been additional pledges made over the past six weeks. There are a couple of countries that we expect may yet come forward," Wilkinson said.

Canada, Germany and the U.K. are among the countries that have made aggressive new funding commitments.

In June, Prime Minister Justin Trudeau announced Canada will double its international climate finance commitment to $5.3 billion over the next five years. Last year, the U.K. also doubled its original promise, earmarking some $19.25 billion between 2021 and 2025 for climate mitigation efforts abroad. Germany is spending some $5.8 billion a year for the next five years on international climate financing.

Based on recent estimates from the Organization for Economic Co-operation and Development (OECD), climate finance provided and mobilized by developed countries increased from $58.5 billion US in 2016 to $79.6 billion in 2019 — with countries on track to hit $100 billion by 2023.

To meet and exceed the $100-billion mark, the two environment ministers suggested richer countries have to commit more money on a faster timeline. "Those who have not yet made a pledge should follow suit and come forward with an ambitious climate finance commitment as soon as possible," the ministers wrote in their report.