United States (US) President Joe Biden on Thursday announced a new international climate finance plan that seeks to mobilise funds to help developing countries tackle the negative impacts of climate change. The first-of-its-kind proposal was unveiled at the US Leaders Summit on Climate, which saw the participation of 40 leaders from around the world.
“Today we are issuing America’s first-ever international climate finance plan,” Biden told the gathering. “This plan represents our vision for financing the global climate response in a coordinated way. It lays out specific steps that federal agencies of the United States will take to increase both the quality and quantity of climate financing,” he added.
According to an executive summary of the proposal released by the White House, the US intends to double its annual public climate finance to developing countries by 2024, and triple its adaptation funds in the same timeframe. Though the document does not lay out exact numbers, it says that the Biden administration “will work closely with Congress” to achieve these goals.
The plan also calls for the increased mobilisation of private finance and capital for climate projects. “This moment demands urgency. Good ideas and good intentions aren’t good enough. We need to ensure that the financing will be there, both public and private, to meet the moment on climate change and to help us seize the opportunity for good jobs, strong economies, and a more secure world,” the president stressed.
Additionally, the proposal deems “scaling back of public investments in carbon-intensive fossil fuel-based energy” as “necessary” to increase investments in climate-friendly activities and called on federal departments and agencies to end international investments in and in support of such projects. It also asks government institutions to work with other countries through bilateral and multilateral fora “to promote the flow of capital toward climate-aligned investments and away from high-carbon investments.”
Further, it states that the US Treasury Department “will continue to promote improving information on climate-related risks and opportunities; identifying climate-aligned investments; managing climate-related financial risks, and aligning portfolios and strategies with climate objectives.” Biden said that the National Security Council (NSC) will conduct a review of this plan in FY 2023 to not only measure its progress but also evaluate if any amendments are needed to alter its ambition and impact.
Earlier in the day, Biden pledged to reduce the country’s greenhouse gas emissions by 50-52% over the next decade. The target more than doubles the country’s previous commitment under the 2015 Paris Agreement, when the Obama administration vowed to cut emissions by 26-28% by 2025.
Biden Introduces First-Ever International Climate Finance Plan at Leaders Summit
The proposal seeks to mobilize funds to help developing countries tackle the negative impacts of climate change.
April 23, 2021
SOURCE: AL DRAGO/THE NEW YORK TIMES