Islamic Relief Position Paper on Climate Action: Climate Finance – World

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Climate protection depends on financing

“Climate finance” refers to international finance that provides resources to developing countries to address climate change and specifically to support mitigation and adaptation efforts and to manage loss and damage.

Countries that have historically benefited and continue to benefit most from industrial and agricultural processes that lead to global warming must make the greatest contribution to avoiding greenhouse gas emissions. They must mitigate, adapt and recover from loss and damage in countries least responsible for creating the climate crisis and least able to deal with the impacts.

Without adequate funding, it is impossible to bring justice and develop the necessary spirit of global cooperation needed to tackle climate change, especially for countries experiencing the worst effects of the climate crisis. The Paris Agreement committed to mobilizing $100 billion annually for climate finance. This has not been achieved and it is crucial to provide at least $600 billion by 2025.

The Intergovernmental Panel on Climate Change (IPCC) found that investments in climate action need to increase by at least fivefold in Southeast Asia and developing countries in the Pacific by 2030, sevenfold in Africa and 12fold in the Middle East to reduce warming to below 2 °C limit. This deficit is most evident in agriculture, forestry and other land uses, where recent financial flows are between 10 and 29 times below what is needed to meet the Paris Agreement targets.

The agreement calls for a balance between financing adaptation and financing climate protection. Currently, however, little is spent on adapting to climate change and very little on dealing with loss and damage, despite these being the most pressing issues for many developing countries. Support urgently needs to be expanded to ensure that 50 per cent of public funding supports adaptation, with an additional dedicated financing facility to deal with losses and damages.

Climate finance should be public and disbursed for public and publicly accountable programs and projects, and not for private, for-profit initiatives or public-private partnerships. Climate finance must be new and in addition to existing international financial commitments such as development aid abroad. A gender funding approach should be adopted to fund transformative and positive change in societies.

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