Developing countries “will need $2 trillion in annual climate finance by 2030” | Climate crisis

New data shows that around $2 trillion (£1.75 trillion) will be needed each year by 2030 to help developing countries cut greenhouse gas emissions and cope with the effects of climate change.

The cash will be needed to enable poor countries to move away from fossil fuels, invest in renewable energy and other low-carbon technologies and cope with the effects of extreme weather, according to a report prepared by the governments of the United Kingdom and Egypt. , and presented Cop27 UN Climate Summit.

The numbers, which would meet the needs of all the world’s developing economies except China, are far higher than any climate finance yet committed to helping poor countries.

“About half of the required financing can reasonably be expected to come from local sources, from strengthening domestic public finance and domestic capital markets, including tapping into the large pools of local finance that national development banks can mobilize,” the report said.

However, external financing, as well as the World Bank and other multilateral development banks, must also play a key role.

Nicholas Stern, a climate economist who wrote an important review of the economics of climate change in 2006, was the lead author of the report. He said. “Rich countries must recognize that it is in their vital interest, as well as a matter of justice, given the heavy impacts of current and past high emissions, to invest in climate action in emerging market and developing countries. countries.

“Most of the growth in energy infrastructure and consumption predicted to occur in the next decade will be in emerging markets and developing countries, and if they remain dependent on fossil fuels and emissions, the world will not be able to avoid dangerous climate change. harming and destroying billions of lives and livelihoods in both rich and poor countries”.

Financing low-carbon economic growth in poor countries will help lift billions of people out of poverty, create jobs and reduce greenhouse gas emissions.

The money is also needed to help poor countries adapt to the effects of the climate crisis, for example by building stronger infrastructure and defences, such as sea walls and early warning systems. For the most severe impacts of climate change, which countries cannot adapt to, is known as loss and damageThe money will help rescue those at risk, repair vital infrastructure and help heal the social fabric of countries such as health and education, in countries ravaged by extreme weather conditions such as devastating floods, droughts, hurricanes and heatwaves, i.e. likely to worsen as a result of climate change.

Loss and damage is one of them Key priorities for discussion at the Cop27 summit in Sharm el-Sheikhwhich started on Sunday and will continue for two weeks.

Poor countries have been promised since 2009 that they would receive at least $100 billion a year by 2020 to help them cut emissions and cope with the effects of extreme weather. But that goal has been repeatedly missed and is unlikely to be met until next year.

Lord Stern said: “Given the pressure on the public budgets of all countries, the role of multilateral development banks, including the World Bank, will be crucial in increasing the volume of external financing and reducing the cost of emerging markets and developing countries. for capital investors. The financial flow from these institutions should triple from about $60 billion a year to about $180 billion a year over the next five years. This requires a strong sense of direction and support from the country’s shareholders and real leadership at the top of these institutions.”

The World Bank has come under increasing criticism in recent months for its perceived failure to commit sufficient funds to the climate crisis. The bank will participate in the discussions this year Policeman 27:00.