Climate finance, CVF & Bangladesh

Climate finance to help developing world adapt from climate change has become the key issue before COP26 at Glasgow of trust between the developed and developing world in the lead up to the Conference. $100 billion was promised to the developed world by the developing world in their commitments to the Paris Agreement and progress on this front has been slow as the OCED graph below well illustrates. We have yet to reach the target set for 2020, when at most 79 per cent of the target has been reached.         

Further under the chairmanship of Bangladesh, the Climate Vulnerable Forum – a group of 48 climate vulnerable countries & thus one of the biggest voting blocks conference of the parties – members are being encouraged not to pay international development loans and their interest, as a means of protest against $100 billion climate finance not being in place yet from the developed world. In this respect please see the letter below, from the PM Sheikh Hasina. This while it is known it is likely $300 billion will be needed by 2030 for the developing world to adapt to climate change.  So watch out for what the CVF does at COP26 in response to this outstanding issue from Paris 2015. 

That said we also have the IMF initiative to give developing world and thus the global south Special Drawing Rights (SDR) issues for them to recover from the COVID pandemic by a global green recovery. Here we are talking about up to $ 650 billions depending on individual countries shares in the IMF. All l would like to suggest is this all be ring fenced for developed world assistance, who are the biggest share holders in the IMF, for climate change adaptation for the developing world. That way we would not only cover the immediate short fall but also the likely commitments in the near future to permit the developing world to adapt in the immediate future. Otherwise the trust won’t be established for the success of COP26 and other global gatherings. 

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