As reported in this blog last week, the Green Climate Fund (GCF) reached $9.95 billion of its $10 billion goal for 2014. Pledges over the weekend increased the total to $9.9 billion. Today, the Ministerial Dialogue on Climate Finance discussed how current institutions and tools are providing countries with reassurance that public finance is flowing internationally.
The Standing Committee on Finance estimated that total global climate finance ranges from $340-$650 billion per year. Of this, $40-$175 billion flows from developed countries to institutions. $35-$50 billion flows to developing countries via public institutions. The SCF projected that 47-78% of funds will be used for climate change mitigation, 11-24% for adaptation efforts, and the remaining will go to other climate change objectives.
The GCF noted that 74 countries have assigned a Nationally Designated Authority (NDA) or focal point designations. This will aid in climate finance efficiency and distribution of funds. Funds are becoming more easily accessible as entities seeking accreditation to receive funds from the GCF can apply online. The GCF stated that savings can be used to build a climate resilient future.
The Global Environmental Facility (GEF) reenforced the necessity for all parties to complete their intended nationally determined contributions (INDC). So far, the GEF has provided support for 18 countries’ INDCs. The GEF stressed that climate finance in both mitigation and adaptation is critical in order to have sustainable, low carbon development. Further, the public funding only makes up a small portion of the funds necessary to achieve such development.
When parties took the floor, more and more pledges rolled in for different climate finance entities. Germany pledged to contribute USD $55 million to the Adaptation Fund while Spain pledged EUR 20 million to the New York Declaration on Forests. Belgium will contribute EUR 50 million to the GCF. The Australian pledge of AUS $200 million to the GCF put the total over the $10 billion mark.
Despite achieving the goal, the Co-Chairs of the Ministerial Dialogue stated that more countries should still make pledges and become involved. This will spur more private entities to pledge so that adequate funds will be available to support global sustainable development.