GOVERNMENTS won’t meet the $100 billion pledge to help poorer countries fight the effects of climate change until at least 2023 - three years late.
COP26 President Alok Sharma said it was “regrettable” that countries won’t meet the cash goal which was one of the UK Government’s four key aims ahead of the summit.
In 2019 the climate finance pledge only grew by 2% from 2018, from $78.3bn to $79.6bn.
Although the 2020 figure has not yet been released, it is likely to fall short of the target, despite countries making further pledges during the conference.
And now, the annual payment made by developing countries may not reach the goal level until 2023, Sharma has said.
It comes as Patricia Espinosa, Executive Director of the UNFCCC, said that the climate finance pledges ultimately need to be changed from billions to trillions.
Meanwhile, former Bank of England Governor Mark Carney revealed that around 450 financial institutions, with around 40% of the world’s assets on the books, have signed up to the Glasgow Financial Alliance for Net Zero (Gfanz).
In 2009, wealthy nations agreed to collectively mobilise $100bn each year between 2020 and 2025 to help developing countries adapt to climate impacts and cut their emissions.
But now, Sharma (pictured) has said that the target won’t be met this year or in 2022.
The pledge was one of the four key aims of the UK Government heading into the summit.
During a press conference, Sharma said: “The most vulnerable countries are at the front and centre of mind.
“Today is finance day, countries are setting the tone on ambition and now of course the finance needs to follow.
“As I’ve said over the last couple of days it is regrettable that we are highly unlikely to have met the $100bn dollar goal in 2020.
"But on the basis of information submitted by donors, the OECD analysis shows that developed countries will make significant progress towards the $100bn goal in 2022 and I believe it also provides confidence that we will meet it in 2023.
“And in the five year period from 2021 to 2025 we will likely be above $500bn in aggregate.”
Espinosa said that the “ultimate objective” is to move the billions to trillions “in order to be able to support the deep transformation of the world that is required”.
She added: “The money is there. We need to mobilise it for the climate.
“We need to put it at the service of this that is really achieving the transformation to address the biggest challenge for humanity.”
Earlier in the day, Carney said that a new green commitment from companies controlling $130 trillion (£95 trillion) in assets will be “more thn is needed” to achieve net-zero in the fight against climate change.
Carney (pictured) said climate activist Greta Thunberg was right to “blast” world leaders at the UN in 2019.
He told the Cop26 climate conference: “I was in the room two years ago in the General Assembly, along with presidents, prime ministers, dignitaries and business leaders.
“Greta Thunberg rightly blasted everyone, with words to the effect of you’ve stolen my dreams and my childhood.
“Right here is where we draw the line.
“The 130 trillion that the Chancellor announced is more than is needed for the net-zero transition globally.
“A pool of that capital has been carved out for the transition in emerging and developing economies, and not at some distant point in the future, but for this decade.”
Carney said around 100 trillion dollars (£73 trillion) are needed to get the world to net zero.
“What you’re hearing today is that the money is here, but that money needs net-zero aligned projects,” he said.
He was speaking as global finance ministers met at Cop26 in Glasgow.
International Monetary Fund managing director Kristalina Georgieva (pictured below) called for a global carbon tax floor that could help push down emissions.
She said: “We believe that placing a carbon price in this mitigation strategy plays an enormously important role.
“Last year only 70% of emissions were covered by a carbon price. This year we are edging toward 25%, one quarter.”
Norway committed to tripling the amount of cash it spends to help developing countries deal with adaptation to climate change, while Japan and Australia said they would double their investment.
Switzerland, the US and Canda made commitments to the Adaptation Fund, and new commitments for climate financing came from the UK, Spain, Japan, Australia, Norway, Ireland and Luxembourg regarding the $100bn plan.
The UK pledged £100 million in new funding to help countries combat the bureaucracy of securing climate investment through the Taskforce on Access to Climate Finance.
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