Climate funds

Subject – Environment

Context – Climate funds: Developed nations must step up

Concept –

In 2009, at the COP15 Summit in Copenhagen, developed countries committed to jointly mobilise $100 billion a year for climate finance so that developing nations can take effective actions.
The 2015 Paris Summit extended this goal through 2025.
Article 9.4 of the Paris Agreement states that the provision of scaled-up financial resources should aim to balance adaptation and mitigation.
In 2016, the United Nations Environment Programme (UNEP), in its Adaptation Gap Report, estimated the annual climate adaptation costs and financing needs at $140- 300 billion by 2030 and $280-500 billion by 2050.
Climate mitigation projects are investable, which attract private financiers. On the contrary, adaptation sectors find it difficult to attract funds, especially private capital, due to high project development costs and lack of commercial viability or good investment returns. The benefits are also largely confined to the recipient countries.

To know more about Climate Finance, please refer November 2021 DPN.