by Allegra Lovejoy
COP 29 (the 29th Conference of Parties of the U.N. Convention on Climate Change, or UNFCCC) met during the past two weeks in Baku, Azerbaijan. Climate finance is the major focus of this COP and has been a significant focus of international climate negotiations since 2010.[1] Climate finance refers to funds committed by corporations and nations to support the costs of adaptation to a rapidly changing climate in vulnerable areas. Within the United States, $61 billion of investment in clean energy adaptation through the Inflation Reduction Act is an example of domestic climate finance.[2] Globally, climate finance typically refers to large commitments made by wealthy developed nations to funds supporting adaptation and natural disaster relief in developing countries and countries most vulnerable to climate risks.[3] The climate finance paradigm is based on the reality that nations’ contributions to climate change—and nations’ resources to adapt—varies dramatically.
Nearly half of the world population is incredibly vulnerable to climate risks like drought and its impact on agriculture; natural disasters like hurricanes and typhoons; strain on public infrastructure; and civil conflict spurred by these pressures, without adequate governmental resources to adapt. Global climate finance is tremendously important to preserve stability in developing countries and prevent the displacement of hundreds of millions of people as climate refugees.[4]
However, global climate finance is not going very well. National commitments by wealthy nations remain far below the funding necessary for adaptation as well as loss and damage—and actual contributions are often lower than commitments.[5] In 2009, a target of $100 billion annually was established as a starting point – not an accurate estimate of need, which ranges from $300 billion to $2 trillion annually.[6] Annual funding often falls far short of this and often constitutes loans, not the necessary grants. Experts argue that at least three times this amount would be required annually for adaptation funds, as well as responding to natural disasters—meaning that the needed funds are at least 10 times the amount actually contributed.[7] The Green Climate Fund (GCF) is the world’s largest single fund dedicated to climate adaptation, established by the UNFCCC in 2010, collecting over $20 billion to date; but the GCF only addresses some of the need.[8] On the American side, the Biden administration pledged $11 billion annually to global climate finance, but Congress has authorized less than $1 billion of actual funding—not including non-monetary capacity-building partnerships.[9]
American news media and political discussions tend to revolve around domestic issues and rarely hold in-depth discussion of our role as a major contributor to global climate change, as well as our ethical obligation to contribute to adaptation in vulnerable and developing countries. (To wit, in September’s presidential debate, climate change was mentioned very briefly—with no discussion of adaptation or global issues.) Americans have been, to date, more insulated from the impacts of climate change due to our national wealth, food systems, and infrastructure, giving a potentially distorted impression of the impacts already being experienced in many parts of the world. Those with concern for the poor and vulnerable should be aware of the destabilizing and life-threatening effects of climate change in vulnerable nations globally. Wealthy nations should be more proactive in contributing to global climate finance.
Episcopalians who wish to contribute their share may contribute to Episcopal Relief and Development’s climate adaptations funds, other direct-impact organizations like El Hogar and Our Little Roses in Honduras, or entities like The Adaptation Fund. We can also continue to make our cities and states more hospitable for migrants—many of whom are driven by climate change-related situations—and invest in local adaptation and resiliency work.
Allegra Lovejoy is a graduate of Yale Divinity School and Yale School of the Environment, where she studied climate change and culture. Previously, she worked in land conservation and environmental education. She works as an educator, retreat facilitator, and worship facilitator with churches in New York and Long Island.
Sources
https://www.ifc.org/en/what-we-do/sector-expertise/blended-finance/climate/green-climate-fund
https://www.state.gov/progress-report-on-president-bidens-climate-finance-pledge
https://climateprogramportal.org/2024/10/25/what-climate-funding-remains-from-the-ira
https://climateactiontracker.org/countries/usa
[2] https://www.state.gov/progress-report-on-president-bidens-climate-finance-pledge
[3] https://unfccc.int/topics/introduction-to-climate-finance
[4] https://www.unhcr.org/us/what-we-do/how-we-work/climate-change-and-displacement
[5] https://climateactiontracker.org/countries/usa/
[6] https://www.wri.org/insights/ncqg-key-elements
[7] https://www.un.org/en/climatechange/raising-ambition/climate-finance
[8] https://www.ifc.org/en/what-we-do/sector-expertise/blended-finance/climate/green-climate-fund
[9] https://climateprogramportal.org/2024/10/25/what-climate-funding-remains-from-the-ira