Climate finance faces hurdles globally and nationally – News


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The effects of climate change are felt globally. However, climate finance is not yet working as intended.

Many developing countries have made their climate goals dependent on support from developed countries. Therefore, from 2020 onwards, 100 billion dollars in so-called climate financing should have flowed annually. But the goal was not achieved.

What is the problem with climate finance?


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Countries in the global south – mainly those in Africa, Central and South America and Asia – sometimes do not have the money to initiate measures against climate change.

Therefore, these countries need money from richer countries in order to be able to build solar systems, for example. The money is currently not flowing to the global south to the extent that is actually intended.

But according to experts, $100 billion a year is not enough. Bjarne Steffen, Professor of Climate Finance at ETH Zurich, says: “If you add up everything that is mentioned in these nationally determined contributions, then you end up with roughly four to five times the 100 billion target per year for the near future .»

Switzerland will also be challenged

Switzerland currently reports around 500 million francs annually as actual climate financing. Switzerland will also be called upon to contribute more. So that photovoltaic systems, wells or dams can be built in countries in the global south.

The Federal Council is aware of the problem. Last year he had a plan drawn up on the possibilities of mobilizing more money for climate financing. He had originally announced a decision for the end of 2023. To date, however, the government has not commented on this and the Federal Office for the Environment does not currently want to comment on the subject of climate financing to SRF.

The development goals of sustainable development are interrelated.

The issue seems sensitive, probably because none of the options are politically unproblematic. Given the prevailing austerity discourse, it will be difficult to find a majority for more money from the federal treasury. One possibility would be to redirect money from existing loans for international cooperation.

But this is a taboo for aid organizations. Delia Berner, climate expert at Alliance Sud, explains it this way: “The development goals of sustainable development are interrelated. So it doesn’t do much good, for example, to talk about more money for adapting to climate change, but then having to save money in the health or education sector in these countries. ” This is a matter of trust and the countries of the global south would feel this if development funds were simply counted towards climate finance.

New sources of financing are being sought

According to Delia Berner, the federal government should look for new sources of financing. This should primarily happen to those responsible. A plane ticket tax could be discussed again.

The EU foreign ministers are planning in a similar direction. They want to make the oil and gas industry pay in order to mobilize more money for climate financing. In addition, financially strong states such as China and the Gulf states, which are still classified as developing countries by the UN, should also take on a share.

Switzerland has already demanded the latter. But in the next few weeks, Switzerland will not be able to avoid rethinking its own climate aid to the countries of the global south.

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