Skip to main content

Sunset.

Keeping the Climate-Finance Promise

In 2009, the world’s rich countries pledged to mobilize $100 billion a year by 2020 to help poor countries tackle climate change. Since then, that promise has come to be regarded as a key test of the developed world’s resolve to do its part in the fight against global warming.

LONDON – In 2009, the world’s rich countries pledged to mobilize $100 billion a year by 2020 to help poor countries tackle climate change. Since then, that promise has come to be regarded as a key test of the developed world’s resolve to do its part in the fight against global warming.

Reaching the $100 billion target is important. Poor countries must believe that rich countries will honor their pledges. Otherwise, the prospects for an effective international agreement at the United Nations Climate Change Conference in Paris in November and December could be at risk.

Fortunately, there are encouraging signs that the commitment will be honored. But larger financial flows are needed, particularly from the private sector. According to the OECD and the Climate Policy Initiative, developed countries collectively mobilized $52.2 billion in 2013 and $61.8 billion in 2014 to help poor countries reduce greenhouse-gas emissions and build resilience against the effects of climate change that can no longer be avoided.

We hope you're enjoying Project Syndicate.

To continue reading, subscribe now.

Subscribe

Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.

https://prosyn.org/Wi3XNCB;
  1. mallochbrown10_ANDREW MILLIGANAFPGetty Images_boris johnson cow Andrew Milligan/AFP/Getty Images

    Brexit House of Cards

    Mark Malloch-Brown

    Following British Prime Minister Boris Johnson's suspension of Parliament, and an appeals court ruling declaring that act unlawful, the United Kingdom finds itself in a state of political frenzy. With rational decision-making having become all but impossible, any new political agreement that emerges is likely to be both temporary and deeply flawed.

    0
  2. sufi2_getty Images_graph Getty Images

    Could Ultra-Low Interest Rates Be Contractionary?

    Ernest Liu, et al.

    Although low interest rates have traditionally been viewed as positive for economic growth because they encourage businesses to invest in enhancing productivity, this may not be the case. Instead, Ernest Liu, Amir Sufi, and Atif Mian contend, extremely low rates may lead to slower growth by increasing market concentration and thus weakening firms' incentive to boost productivity.

    4

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated Cookie policy, Privacy policy and Terms & Conditions