The authors argue that the climate finance system around the current goal of mobilizing $100 billion per year to support developing countries has been fraught with problems, and that it would be ineffective to simply increase the financing target climate without resolving these difficulties. Therefore, they identify and discuss five priority elements for the negotiations: the relationship with Article 2.1(c) of the Paris Agreement; the adaptation-mitigation balance; financial instruments; mobilize private financing; and “new and additional” funding.
To increase transparency, accountability and trust in climate finance under the UNFCCC and simultaneously enable the mobilization of finance at scale, the authors suggest setting a sub-target for grants. In combination with additional (sub)targets, this could define an overall post-2025 climate finance target, better suited to fulfilling the challenging dual role of mobilizing finance at scale and transferring resources to developing countries. development.
Ambiguous definitions of climate finance and the $100 billion target allow for multiple interpretations, reducing transparency and trust between countries on this central issue of the UN climate negotiations.
The objectives of climate finance seem to be interpreted in a twofold and sometimes contrasting way: mobilizing large-scale investments and transferring resources from developed to developing countries. Highlighting the existence of this duality could help find common ground for a post-2025 climate finance target.
Mobilization of private finances, the relationship to Art. 2.1(c) and other priority items identified in this Perspective article require careful consideration. Increasing the climate finance target could prove ineffective without greater clarity on these issues.
More detailed assessments of the needs and priorities of developing countries and the relationship between needs, costs and required support would contribute to the achievement of the post-2025 goal and the effectiveness of climate finance.
The authors suggest a sub-target for grants to increase accountability and trust, ensure transparent transfer of resources from developed countries, and target the needs of the most vulnerable developing countries.
The negotiations on the post-2025 climate finance target provide a good opportunity to consider other relevant aspects, including access to and prioritization of finance as well as loss and damage.