Real Money, Urgent Action
The latest IPCC Report made it unmistakably clear: far more and better financial support is needed to adopt and implement urgent, rapid and transformational policies to hold global temperature rise to 1.5oC. Climate finance takes a lot of space in this year’s COP agenda and ECO hopes negotiators will make good and constructive use of the space they are given.
New assessments from the UNFCCC’s Standing Committee on Finance and the OECD indicate an increase in the overall level of international climate finance from 2013 to 2017 based on developed countries’ self-reporting. However, this increase continues to heavily favour the utilisation of loans and not grants, which, as we know, have to be paid back. According to the OECD data, the amount given as loans doubled, increasing from USD $20 to $40 billion between 2013 and 2017. In contrast, finance provided as grants only increased modestly from $10b to $13b. Reporting finance provided in nominal terms — and including flows through developed countries’ export credit agencies, as the OECD report does — does not reflect the actual support provided. A key piece of information missing in this report is the grant equivalent of all loan instruments. ECO wonders why this information is missing.
... Read more ...