The ongoing COP28 summit has witnessed a surge in financial commitments from countries, development institutions, and businesses, signaling a collective effort to address climate challenges. Hosted by the United Arab Emirates, the summit reported mobilizing over $83 billion in the initial five days. Here’s a breakdown of some significant finance pledges made at COP28:
1. UAE’s $30 Billion Pledge:
The United Arab Emirates pledged a substantial $30 billion to establish a new fund supporting climate-friendly projects globally. Out of this, $5 billion is earmarked for projects in the Global South.
2. World Bank’s $9 Billion Increase:
The World Bank expressed its commitment to raise climate funding to 45% of its total lending, translating to an annual increase of $9 billion.
3. CAF’s $2 Billion Annually:
The Development Bank of Latin America and the Caribbean (CAF) committed to investing over $2 billion annually until 2030 in Latin America to combat climate change.
4. ADB’s $10 Billion for the Philippines:
The Asian Development Bank (ADB) announced a $10 billion allocation for climate investment in the Philippines between 2024 and 2029.
5. Japan and France Support:
Japan and France pledged support for a plan by the African Development Bank and Inter-American Development Bank to leverage IMF Special Drawing Rights for climate and development.
6. UAE Banks’ $270 Billion Green Finance:
UAE banks collectively pledged to mobilize 1 trillion dirhams, equivalent to around $270 billion, in green finance.
7. Climate Financing Venture:
Charitable donors, including the Bezos Earth Fund, collaborated with the World Bank’s private investment arm in a climate financing venture aiming to generate $11 billion in investments in developing countries.
Loss and Damage Fund:
After establishing a fund to assist poorer countries with climate change impacts, total contributions reached $726 million, with Italy and the Netherlands contributing 100 million euros and 15 million euros, respectively.
Green Climate Fund:
The Green Climate Fund, dedicated to supporting climate action in developing countries, received pledges totaling $3.5 billion, including fresh funding from the United States.
Renewable Energy Initiatives:
Copenhagen Infrastructure Partners aims to raise $3 billion for a fund focused on building renewable energy projects in emerging and middle-income countries.
Technology and Methane Mitigation:
The Arab Energy Fund pledged up to $1 billion over the next five years for decarbonization technologies. The UAE also contributed $100 million to a new World Bank methane trust fund.
Food, Nature, Health, and Disaster Relief Initiatives:
Pledges were made for various initiatives, including $200 million from the Bill & Melinda Gates Foundation and the UAE for smallholder farmers, $205 million for Amazon reforestation, $777 million for eradicating tropical diseases, and $300 million for a climate disaster fund.
The diverse range of pledges reflects a multi-faceted approach to address climate challenges, covering renewable energy, technology, methane reduction, nature conservation, health, and disaster resilience.
