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Global Climate Finance Target of $100 Billion Anticipated to Be Met by 2023

According to a new report released by Canada and Germany in advance of the COP27 climate conference, the global goal for developed nations to mobilize

$100 billion in climate finance to their counterparts in developing nations to mitigate and adapt to climate change is expected to be met in 2023 and exceeded in subsequent years.


While the 2023 benchmark is a delay compared to the initial aim, it represents a significant increase in climate finance commitments from rich countries over the past few years.


The initial objective of mobilising $100 billion per year by 2020 to help climate action in developing countries was declared in 2009, reiterated in the Paris Agreement of 2015, and extended to 2025. OECD estimates indicate that by 2020, annual climate finance mobilisation has only reached $83 billion.


The final accord of the COP26 summit, the Glasgow Climate Pact, encouraged the annual delivery of $100 billion by 2025 and underlined the necessity for progress transparency. Countries were also encouraged to at least quadruple the annual collective climate adaptation financing to developing nations to $40 billion.


Several countries increased their pledges at the meeting, and Canada and Germany were entrusted with developing a strategy to restore climate money. The status report was included with the delivery plan.


According to the Canada/Germany Progress Report, developed nation promises indicate that substantial progress towards the target will be accomplished this year, with the $100 billion threshold being reached in 2023. Jonathan Wilkinson, Canada's Minister of Environment and Climate Change, and H.E. Jochen Flasbarth, Germany's State Secretary, Federal Ministry of the Environment, also penned the following in the report:


Furthermore, the data gives us confidence that we will likely be able to raise more than $100 billion per year in the future.


In addition to adaptation and grant financing, transparency, predictability, and the mobilisation of private investment, the revised Delivery Plan includes a set of guiding principles for developed nations to examine in order to continue to scale up climate finance.


Canada's Minister of Environment and Climate Change, Steven Guilbeault, stated:


As the world confronts the escalating effects of climate change, it is more important than ever for wealthy nations to fulfil their climate finance pledges and equip developing nations with the means to combat climate change and deal with its consequences. It is our responsibility and in our own self-interest to assist them in developing climate-resilient and low-carbon economies."


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