Climate target of $100bn for developing countries 'must be increased before Cop26'

Report says shortfall needs to be met before crucial climate summit in November

The E3G think tank said a new climate plan must aim to deliver larger sums between 2022 and 2025, above the $100bn that was promised. Bloomberg

A missed target of $100 billion in climate funding to developing countries must increase before Cop26 summit in Glasgow later this year, a think tank has said.

World leaders and climate activists will meet in November for the Cop26 summit, described as humanity's "last, best chance" to restrict global warming to 1.5°C and avert an environmental catastrophe.

Since 2009, developed countries have agreed to find $100bn each year in funding to address the needs of developing nations between 2020 and 2025. This money was to be used to help poorer countries mobilise and meet their climate goals under the Paris Agreement.

However, an estimated climate finance gap of $20bn remained by the 2020 deadline, according to figures released by the Organisation for Economic Co-operation and Development.

In a new paper, the E3G think tank said a new climate plan must aim to deliver larger sums between 2022 and 2025, above the $100bn that was promised to address this shortfall.

If this funding is not met, China – which has half the world’s coal-fired power plants – will find it easier to excuse a failure to reduce its emissions, the report says.

It cited figures produced by the economist Lord Nicholas Stern from the Centre for Climate Change Economics and Policy at the London School of Economics. He said $150 billion a year would be feasible by 2025.

"A higher target is needed to average out beyond $100bn annually and make amends for initial shortfalls," said report author Iskander Erzini Vernoit.

"Although lawyers may argue there is no legal basis for a higher target or $500bn expectation, this misses the point. The issue is not a legal obligation, but a political necessity of showing good faith.

"To permit progress on other agendas – including the post-2025 finance goal and obtaining pre-2030 emissions reductions by all major economies to keep 1.5°C alive – ambition on scale is crucial."

Egrets are seen on mangrove trees during sunrise at Kajhu beach, Aceh province, Indonesia. AFP

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A fisherman on his pirogue throws a net in the Niger river in Mopti, Mali. Fishing is threatened by climate changes, unselective fishing and armed groups present in the rural zones in central Mali. AFP

World leaders virtually attend the Leaders Summit on Climate, as seen from the East Room of the White House. AP Photo

US President Joe Biden speaks to the virtual Leaders Summit on Climate, from the East Room of the White House in Washington, DC. AP Photo

US Vice President Kamala Harris speaks to the virtual Leaders Summit on Climate, from the East Room of the White House. AP Photo

British Prime Minister Boris Johnson speaks during the virtual Leaders Summit on Climate in a video screenshot. Bloomberg

India's Prime Minister Narendra Modi speaks during the virtual Leaders Summit on Climate in a video screenshot. Bloomberg

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Chinese President Xi Jinping speaks during the virtual Leaders Summit on Climate. Bloomberg

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Sheikh Hasina Wajed, Bangladesh's prime minister, right, speaks during the virtual Leaders Summit on Climate. Bloomberg

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President Joe Biden, Secretary of State Antony Blinken, left, and Special Presidential Envoy for Climate John Kerry, right, listen during the virtual Leaders Summit on Climate. AP Photo

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Sheikh Mohamed Bin Rashid attends the Leaders Summit on Climate hosted remotely by US President Joe Biden.

Sheikh Mohamed Bin Rashid attends the Leaders Summit on Climate hosted remotely by US President Joe Biden.

Sheikh Mohamed Bin Rashid attends the Leaders Summit on Climate hosted remotely by US President Joe Biden.

Sheikh Mohamed Bin Rashid attends the Leaders Summit on Climate hosted remotely by US President Joe Biden.

South Korean President Moon Jae-in speaks during the virtual Leaders Summit on Climate, at the presidential Blue House in Seoul, South Korea, Thursday, April 22, 2021. (Lee Jin-wook/Yonhap via AP)

Charles Michel attends a virtual Global Climate Summit via video link from the European Council building in Brussels, Thursday, April 22, 2021. (Johanna Geron, Pool via AP)

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epa09152984 A handout photo made available by the Presidency of Brazil that shows President Jair Bolsonaro, along with the Minister of the Environment, Ricardo Salles (L), during the climate summit convened by the US President, Joe Biden, at the Planalto Palace in Brasilia, Brazil, 22 April 2021. Brazilian President Jair Bolsonaro announced that his country will seek to achieve carbon neutrality by 2050, ten years before the previous environmental commitment. Around 40 international leaders attended the summit called by US President Biden. The meeting is intended to underline the urgency and economic benefits of stronger climate action on the road to the United Nations Climate Change Conference (COP26) in Glasgow in November 2021. EPA/MARCOS CORREA / BRAZIL PRESIDENCY / HANDOUT MANDATORY CREDIT: HANDOUT EDITORIAL USE ONLY/NO SALES

Pope Francis speaks during the virtual Leaders Summit on Climate in a video screenshot on Thursday, April 22, 2021. President Biden pledged to cut U.S. greenhouse gas emissions in half by 2030 as he convenes 40 world leaders in a virtual summit intended to demonstrate renewed American resolve to fight climate change and pressure wary nations to raise their own ambitions. Source: White House/Bloomberg

BERLIN, GERMANY - APRIL 22: German Chancellor Angela Merkel takes part in the virtual international climate summit with US President Joe Biden, on April 22, 2021 in Berlin, Germany. The meeting aims to underline the urgency and economic benefits of stronger climate action on the way to the United Nations Climate Change Conference (COP26) in Glasgow in November. Around 40 top international politicians take part in the summit. (Photo by Kay Nietfeld - Pool/Getty Images)

Prime Minister Boris Johnson listens to Indian Prime Minister Narendra Modi (on screen) during the opening session of the virtual global Leaders Summit on Climate, as he sits in the Downing Street Briefing Room in central London, Thursday April 22, 2021. The virtual event attended by many national leaders from their countries around the globe, to raise global ambition on climate change is taking place on Earth Day, and hosted by US President Joe Biden. (Justin Tallis/Pool via AP)

The authors of the report say that "joined-up, whole-of-government diplomacy" is also required and that politicians must take heed of the failure to deliver on the $100bn-a-year goal.

The keys to meeting this challenge would be boosting specific national climate finance pledges, reallocating International Monetary Fund-issued special drawing rights and increased input from developed country shareholders.

The report also said that such a promise is within reach but should be delivered by September, at the latest, before the UN General Assembly.

"Advanced economies spent almost $12 trillion in 2020 alone on Covid-19 fiscal measures, according to the IMF – powering past the $100bn is therefore a relatively small fiscal commitment by comparison," the report said.

"A credible plan to surpass $500bn in climate finance over five years is needed – not just for trust between countries, but for action to keep 1.5°C alive in this decisive decade for human history."