Climate Finance Delivery Plan Progress Report: collective progress and key actions to reach US$100 billion goal

GATINEAU, QC, Oct. 28, 2022 /CNW Telbec/ - Ahead of COP27, Canada and Germany today released a Progress Report on the Climate Finance Delivery Plan that looks at the collective progress and key actions still required by developed countries to deliver on the commitment to jointly mobilize US$100 billion in climate finance per year, as soon as possible. International climate finance helps developing countries combat and adapt to climate change, while striving to address biodiversity loss, especially for the poorest and most vulnerable countries, which are particularly impacted by climate shocks.

Despite the geopolitical, economic, and environmental challenges and uncertainties the world is facing, developed countries remain committed to continued collective advancement toward the US$100 billion goal. The Progress Report focuses on four key action areas:

• Calling on all partner nations to enhance the transparency of climate finance and commitment to double adaptation finance.
• Reducing the barriers to make it easier for developing countries to access climate finance.
• Enhancing the delivery of climate finance from Multilateral Development Banks (MDBs) to increase and improve climate finance.
• Improving the effectiveness of mobilizing private finance.

Canada and Germany co-led the development of this Progress Report at the request of the COP26 presidency, and with the collective and valuable contributions of developed countries, MDBs, and climate funds closely related to the United Nations Framework Convention on Climate Change. In developing this report, the Honourable Steven Guilbeault, Canada's Minister of Environment and Climate Change, and Jennifer Morgan, Germany's State Secretary and Special Envoy for International Climate Action, conducted extensive outreach with developing countries, civil society organizations, and think-tanks to hear their perspectives on how climate finance can be improved, as well as how the Progress Report can further enhance transparency and collaboration.

While significant progress has been made since the Climate Finance Delivery Plan was launched ahead of COP26 last year, further efforts are still needed to improve the scale, efficiency, and access to climate finance, and to deliver on the US$100 billion goal. The Progress Report will help push the conversation forward at COP27 and beyond, as focus turns to the post-2025 goal for climate finance.

Quotes

"As the world confronts the rising impacts of climate change, it is more vital than ever for developed countries to make good on their commitments on climate finance, and to provide developing countries the resources to fight climate change, and cope with its consequences. It is our duty, and in our own self-interest, to help them build climate resilience, and more sustainable, low-carbon economies. Canada remains steadfast in its commitment to work with others to reach the collective US$100 billion goal as soon as possible. The Climate Finance Delivery Plan Progress Report shows that though we are making progress, more needs to be done."
– The Honourable Steven Guilbeault, Minister of Environment and Climate Change

"The urgency of the climate crisis puts a strong focus on delivering climate finance to the areas most needed now by developing countries. While the Progress Report on last year's Climate Finance Delivery Plan shows the richness of activities happening, it is clear that more action is needed, especially more clarity on the collective doubling of adaptation finance. As a group of contributors, but also as shareholders of Multilateral Development Banks, we need to continue to work together to push for more climate ambition in the global financial system."
– Jennifer Morgan, State Secretary and Special Envoy for International Climate Action, Germany

"It is clear that developed countries, and the global financial system, must do more to support developing countries to decarbonize and adapt to the impacts of climate change. I want to thank Minister Guilbeault, Special Envoy Morgan, and the developed countries who have contributed to this Report, for their ongoing commitment to help rebuild trust around the US$100 billion goal. The Delivery Plan Progress Report is an important response to the call for enhanced transparency and predictability on climate finance. But we know that the US$100 billion goal is just the beginning of rebuilding trust among all countries, and now the critical next step is for finance to reach climate vulnerable countries as soon as possible."
– Alok Sharma, President of COP26

Quick facts

• In 2009, developed countries agreed to jointly mobilize US$100 billion per year by 2020 to support developing countries in taking climate action. This was reaffirmed in the Paris Agreement, where the Parties agreed to extend the US$100 billion goal through to 2025.
• Based on estimates from the Organisation for Economic Co-operation and Development (OECD) in July 2022, climate finance provided and mobilized by developed countries reached US$83.3 billion in 2020, which represents significant growth over the near-zero levels of climate finance mobilized in 2009.
• At the request of the COP26 presidency, in 2021, Canada and Germany prepared a Climate Finance Delivery Plan to demonstrate how, and when, the collective US$100 billion climate finance goal will be met. The plan was released in the lead up to COP26 and based on the analysis of the OECD.
• When adopting the Paris Agreement at COP21, the Parties agreed to set a New Collective Quantified Goal from a floor of US$100 billion per year, taking into account the needs and priorities of developing countries for the period starting in 2025. At COP26, the Parties agreed to an ad hoc work program from 2022–2024, in order to establish the post-2025 goal.
• At COP26, the Glasgow Climate Pact urged developed countries to at least double their collective provisions of adaptation finance from 2019 levels by 2025. The Glasgow Climate Pact also calls on MDBs, development finance institutions, and the finance sector to scale up adaptation finance. In addition, the Parties were encouraged to find new ways to mobilize adaptation finance from the private sector.
• In 2021, Canada doubled its own climate finance commitment to CAD$5.3 billion over five years (2021–2026). This commitment increases the provision of funding for adaptation to a minimum of 40 percent, which more than doubles funding for adaptation compared to Canada's commitment for the previous five years, in line with the objectives set by the Glasgow Climate Pact.
• Canada's climate finance goes beyond its public commitment, including international assistance with other climate change components, private climate finance mobilized through public investment, climate-relevant investments by Crown corporations, and core contributions to MDBs.
• Germany's total climate finance commitment amounts to at least EUR6 billion per year by 2025 at the latest. In 2021, Germany reached EUR5.34 billion in total climate finance from budgetary sources. Out of this, 49 percent went into adaptation. Including mobilized private finance, German climate finance amounts to EUR8.1 billion.

Associated links

• Climate Finance Delivery Plan Progress Report: Advancing the Ten Collective Actions
• Climate Finance Delivery Plan: Meeting the US$100 Billion Goal
• Canada's International Climate Finance
• Germany's International Climate Finance
• UN Conference on Climate Action: COP27

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SOURCE Environment and Climate Change Canada

Contacts: Kaitlin Power, Press Secretary, Office of the Minister of Environment and Climate Change, 819-230-1557, [email protected]; Media Relations, Environment and Climate Change Canada, 819-938-3338 or 1-844-836-7799 (toll-free), [email protected]