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Rich, Polluting Nations Still Owe the Developing World

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value="HOMETR"> <input type="hidden" name="ms" value="HOMETR"> <div class="c-form-item c-form-item--text has-no-label u-spaced-none"> <label class="c-form-item__label u-visually-hidden" for="amount">Amount </label> <div class="c-form-item__element"><span class="c-form-item__prefix">$</span><input class="c-form-item__text" id="amount" name="amount" type="text" maxlength="4" size="4" value="20"></div> </div> <div class="c-form-item c-form-item--select has-no-label u-spaced-none"> <label class="c-form-item__label u-visually-hidden" for="recurring">Recurring </label> <select class="c-form-item__select c-form-item--select" id="recurring" name="recurring"><option value="1" selected="selected">Monthly</option><option value="0">One-time</option></select> </div> <button class="c-donation-tray__button">Give</button> </form> </div> </div> </div> </div> </header> <nav aria-labelledby="breadcrumb-label" class="c-breadcrumb" role="navigation"> <div class="l-constrain"> <h2 id="breadcrumb-label" class="c-breadcrumb__title u-visually-hidden">Breadcrumb</h2> <ol class="c-breadcrumb__list"><li class="c-breadcrumb__item"><a class="c-breadcrumb__link" href="https://www.nrdc.org/news-commentary?f%5B0%5D=news_commentary_language%3Aen#listing-page-content"> <svg class="c-icon is-left c-icon--breadcrumb" role="img" aria-hidden="true"><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#arrow-long"></use></svg> See all News &amp; Commentary</a></li></ol> </div> </nav> <main id="main" class="c-main" role="main" tabindex="-1"> <article data-history-node-id="67410" class="c-article" lang="en"> <div class="l-page"> <div class="l-page__masthead"> <div class="l-constrain"> <div class="l-page__header"> <div class="l-page__eyebrow"> <div class="c-eyebrow"><a class="c-eyebrow__link" href="https://www.nrdc.org/news-commentary?f%5B0%5D=news_commentary_language%3Aen&amp;f%5B1%5D=news_commentary_type%3A327#listing-page-content">Explainer</a></div> </div> <div class="l-page__title"> <h1 class="c-page-title"> Rich, Polluting Nations Still Owe the Developing World </h1> <div dir="ltr" lang="en"> <div data-drupal-messages-fallback class="hidden"></div> </div> </div> <div class="l-page__subtitle"> <div class="c-subtitle"><p>Here’s why follow-through on a $100 billion–per–year climate finance promise, from collecting data to determining success, remains complex but critical. &nbsp;&nbsp;</p></div> </div> <div class="l-page__details"> <div class="l-page__inline-detail"> <div class="c-date"> <time datetime="2022-01-22T12:00:00Z">January 22, 2022</time> </div> </div> </div> </div> </div> </div> <div class="l-page__content"> <div class="l-constrain"> <div class="l-page__main"> <figure class="c-figure"> <div class="c-figure__media"> <img loading="eager" srcset="/sites/default/files/styles/medium_16x9_25/public/media-uploads/ap_762936651327_2400.jpg.webp?h=c3635fa2&amp;itok=qGH-8M6T 192w, /sites/default/files/styles/medium_16x9_50/public/media-uploads/ap_762936651327_2400.jpg.webp?h=c3635fa2&amp;itok=V9TQ4n8w 384w, /sites/default/files/styles/medium_16x9_75/public/media-uploads/ap_762936651327_2400.jpg.webp?h=c3635fa2&amp;itok=mP8LEmL4 576w, /sites/default/files/styles/medium_16x9_100/public/media-uploads/ap_762936651327_2400.jpg.webp?h=c3635fa2&amp;itok=7s65Nebn 768w, /sites/default/files/styles/medium_16x9_150/public/media-uploads/ap_762936651327_2400.jpg.webp?h=c3635fa2&amp;itok=SvPE3wZr 1152w, /sites/default/files/styles/medium_16x9_200/public/media-uploads/ap_762936651327_2400.jpg.webp?h=c3635fa2&amp;itok=091L3xSe 1360w" sizes="min(calc(100vw - 2.22222rem), 768px)" width="576" height="324" src="/sites/default/files/styles/medium_16x9_100/public/media-uploads/ap_762936651327_2400.jpg.jpg?h=c3635fa2&amp;itok=7s65Nebn" alt="A child sits on a table inside the remains of a home with no roof" /> </div> <figcaption class="c-figure__caption"><div class="c-figure__caption-text"><p>Cyclone Evan wreaked havoc throughout Fiji when it passed through the island in December 2012.&nbsp;</p></div><div class="c-figure__caption-credit"> <span class="u-visually-hidden">Credit: </span><p>AP/Tertius Pickard</p></div></figcaption> </figure> </div> <div class="l-page__metadata"> <div class="c-article__authors"> <div data-history-node-id="25267" class="c-profile is-link"> <a class="c-profile__link" href="/bio/courtney-lindwall"> <div class="c-profile__photo"> <img loading="lazy" srcset="/sites/default/files/styles/profile_100/public/2023-05/courtney-lindwall-009.jpg.webp?h=b13ea8c4&amp;itok=6jv3EZTc 48w, /sites/default/files/styles/profile_200/public/2023-05/courtney-lindwall-009.jpg.webp?h=b13ea8c4&amp;itok=Y9EAVJjz 96w" sizes="min(calc(100vw - 2.22222rem), 48px)" width="96" height="96" src="/sites/default/files/styles/profile_100/public/2023-05/courtney-lindwall-009.jpg.jpg?h=b13ea8c4&amp;itok=6jv3EZTc" alt="A headshot of Courtney Lindwall" /> </div> <div class="c-profile__content"> <div class="c-profile__name">Courtney Lindwall </div> <div class="c-profile__title">Contributor</div> </div> </a></div> </div> <div id="block-sharethispageblock" class="c-social-share js-share"> <div class="c-social-share__label">Share this page</div> <ul class="c-social-share__list"> <li class="c-social-share__item"> <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A//www.nrdc.org/stories/rich-polluting-nations-still-owe-developing-world" aria-label="Share on Facebook" class="c-social-share__link"> <svg class="c-icon c-icon--social-share" role="img" aria-hidden="true"><title>Share this page block</title><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#circle-facebook"></use></svg> </a> </li> <li class="c-social-share__item"> <a href="https://www.twitter.com/share?url=https%3A//www.nrdc.org/stories/rich-polluting-nations-still-owe-developing-world" aria-label="Share on Twitter" class="c-social-share__link"> <svg class="c-icon c-icon--social-share" role="img" aria-hidden="true"><title>Share this page block</title><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#circle-twitter"></use></svg> </a> </li> <li class="c-social-share__item"> <button class="c-social-share__link js-copy-link" aria-label="Copy link" type="button"> <svg class="c-icon c-icon--social-share" role="img" aria-hidden="true"><title>Share this page block</title><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#circle-link"></use></svg> </button> </li> </ul> </div> </div> <div class="l-page__main"> <div class="c-wysiwyg u-clearfix" data-wysiwyg> <p>There’s no denying it: Wealthy countries, particularly the United States and Western European nations, have emitted the lion’s share of greenhouse gases that led to the climate crisis. In fact, just 23 developed countries are responsible for <a href="https://www.carbonbrief.org/analysis-which-countries-are-historically-responsible-for-climate-change">half of all historical CO2 emissions</a>. Yet it’s developing nations that are being hit hardest by the effects—and are the least ready to respond.</p> <p>This is why rich nations made a promise at the 2009 United Nations climate summit, or COP15, in Copenhagen. Together, they agreed to mobilize $100 billion per year, officially beginning in 2020, to help developing countries reduce their emissions and adapt to the impacts of climate change.</p> <p>Then they broke their promise.</p> <p>They not only failed to meet the 2020 funding target but also did not clearly define what they would pay for or how to measure success. Here’s what you need to know about this funding pledge and why, even with all its flaws, climate experts believe it remains critical.&nbsp;</p> <h2 class="h5">Why $100 billion?</h2> <p>As part of the 2009 Copenhagen climate accord, experts tried to calculate what it could cost those 23 wealthy countries to fund climate mitigation and adaptation in the developing world. Some deemed the price tag to be as high as <a href="https://www.theguardian.com/environment/2009/dec/16/meles-zenawi-copenhagen-climate-funding">$400 billion per year</a>. The agreed-upon $100 billion was “more or less a compromise,” says <a href="https://www.nrdc.org/experts/brendan-guy">NRDC climate strategist Brendan Guy</a>, who was part of an NRDC team that led a discussion on taking <a href="https://www.nrdc.org/experts/carolina-herrera/green-banks-taking-climate-finance-pledge-project">climate finance from pledge to project</a> at the most recent climate conference in Glasgow, COP26. Yet it remains significant largely because of the political promise it represents.</p> </div> </div> <div class="l-page__expanded"> <figure class="c-figure"> <div class="c-figure__media"> <img loading="lazy" srcset="/sites/default/files/styles/large_25/public/media-uploads/nrdc_climatefinance_treemap_005.jpg.webp?itok=dWKtm6LS 288w, /sites/default/files/styles/large_50/public/media-uploads/nrdc_climatefinance_treemap_005.jpg.webp?itok=HJUVW8yM 576w, /sites/default/files/styles/large_75/public/media-uploads/nrdc_climatefinance_treemap_005.jpg.webp?itok=aIKKp_iM 864w, /sites/default/files/styles/large_100/public/media-uploads/nrdc_climatefinance_treemap_005.jpg.webp?itok=CyxyFJvh 1152w, /sites/default/files/styles/large_150/public/media-uploads/nrdc_climatefinance_treemap_005.jpg.webp?itok=2MhVE3Vx 1728w, /sites/default/files/styles/large_200/public/media-uploads/nrdc_climatefinance_treemap_005.jpg.webp?itok=k21RDhMs 2304w" sizes="(min-width: 1024px) min(calc((100vw - 4.44444rem) * 3 / 4), 1152px), (min-width: 808px) calc((100vw - 2.22222rem) * 3 / 4), calc(100vw - 2.22222rem)" width="864" height="566" src="/sites/default/files/styles/large_100/public/media-uploads/nrdc_climatefinance_treemap_005.jpg.jpg?itok=CyxyFJvh" alt="Polluting countries" title="Rich nations responsible for carbon emissions" /> </div> </figure> </div> <div class="l-page__main"> <div class="c-wysiwyg u-clearfix" data-wysiwyg> <h2 class="h5">So how close are countries to hitting this yearly goal?</h2> <p>Beginning in 2013, donor countries attempted to ratchet up contributions each year, with the hope of reaching $100 billion by the 2020 start date. But by 2019, they had only mobilized about <a href="https://www.oecd.org/newsroom/statement-from-oecd-secretary-general-mathias-cormann-on-climate-finance-in-2019.htm">$80 billion in public and private climate funding</a>, according to the Organization for Economic Cooperation and Development (OECD), an intergovernmental body made up of many of the donor countries. While the data isn’t in yet for 2020, <a href="https://reliefweb.int/report/world/2020-joint-report-multilateral-development-banks-climate-finance">some reports</a> predicted that funders would scale back their commitments due to the pandemic.</p> <p>Even so, these totals paint an incomplete picture, in part because countries have yet to agree on how to divvy up the pie so that all parties pay their fair share. A few organizations have come up with estimates, but the countries themselves haven’t endorsed those percentages. There are also competing perspectives for what kind of funding counts toward the goal of $100 billion per year. Some argue that this means the OECD totals are potentially inflated because, in addition to grants, they also include loans, which must be repaid with interest. A few countries that appear to have surpassed their share of funding, like Japan and France, have provided the majority of the money as loans. This is why Oxfam, an international nonprofit focused on alleviating poverty, estimates the total climate funding from 2017–18 is just a third of the OECD’s estimates—somewhere between <a href="https://oxfamilibrary.openrepository.com/bitstream/handle/10546/621066/bp-climate-finance-shadow-report-2020-201020-en.pdf">$19 billion to $22.5 billion</a>.</p> </div> </div> <div class="l-page__main"> <figure class="c-figure"> <div class="c-figure__media"> <img loading="lazy" srcset="/sites/default/files/styles/medium_25/public/media-uploads/gettyimages-1236284429_2400.jpg.webp?itok=vDldzr9W 192w, /sites/default/files/styles/medium_50/public/media-uploads/gettyimages-1236284429_2400.jpg.webp?itok=0QqjgEec 384w, /sites/default/files/styles/medium_75/public/media-uploads/gettyimages-1236284429_2400.jpg.webp?itok=G8A6aDTs 576w, /sites/default/files/styles/medium_100/public/media-uploads/gettyimages-1236284429_2400.jpg.webp?itok=d7b_gVIe 768w, /sites/default/files/styles/medium_150/public/media-uploads/gettyimages-1236284429_2400.jpg.webp?itok=Cc9kt0bE 1152w, /sites/default/files/styles/medium_200/public/media-uploads/gettyimages-1236284429_2400.jpg.webp?itok=CUDK0paO 1360w" sizes="(min-width: 1024px) min(calc((100vw - 4.44444rem) / 2), 768px), (min-width: 808px) max(calc((100vw - 2.22222rem) / 2), 29rem), calc(100vw - 2.22222rem)" width="576" height="384" src="/sites/default/files/styles/medium_100/public/media-uploads/gettyimages-1236284429_2400.jpg.jpg?itok=d7b_gVIe" alt="A person walks between the panels of a large solar array" /> </div> <figcaption class="c-figure__caption"><div class="c-figure__caption-text"><p>Bhadla Solar Park in Bhadla, in the northern Indian state of Rajasthan, October 2021</p></div><div class="c-figure__caption-credit"> <span class="u-visually-hidden">Credit: </span><p>Sajjad Hussain/AFP via Getty Images</p></div></figcaption> </figure> </div> <div class="l-page__sidebar"> <div class="c-block"> <h2 class="c-block__title"><p>Learn More</p></h2> <div class="c-block__content"> <article data-history-node-id="55563" class="c-mini-teaser" role="article"> <div class="c-mini-teaser__media"> <a class="c-mini-teaser__media-link" href="/stories/climate-migration-equity" aria-hidden="true" tabindex="-1"> <img loading="lazy" srcset="/sites/default/files/styles/small_16x9_25/public/media-uploads/h_25.1446752_2400.jpg.webp?h=c3635fa2&amp;itok=EtV05WvS 96w, /sites/default/files/styles/small_16x9_50/public/media-uploads/h_25.1446752_2400.jpg.webp?h=c3635fa2&amp;itok=-rNnYWE_ 192w, /sites/default/files/styles/small_16x9_75/public/media-uploads/h_25.1446752_2400.jpg.webp?h=c3635fa2&amp;itok=Us-o-Cgy 288w, /sites/default/files/styles/small_16x9_100/public/media-uploads/h_25.1446752_2400.jpg.webp?h=c3635fa2&amp;itok=f4-hr4Jr 384w, /sites/default/files/styles/small_16x9_150/public/media-uploads/h_25.1446752_2400.jpg.webp?h=c3635fa2&amp;itok=4Wq3dBSR 576w, /sites/default/files/styles/small_16x9_200/public/media-uploads/h_25.1446752_2400.jpg.webp?h=c3635fa2&amp;itok=Oz9PP8F_ 768w" sizes="(min-width: 1478px) min(calc(0.1 * (100vw - 4.44444rem)), calc(384px / 2.5)), (min-width: 1024px) calc((100vw - 4.44444rem) / 4), (min-width: 808px) calc((100vw - 2.22222rem) / 4), (min-width: 390px) min(calc((100vw - 2.22222rem) / 2.5), calc(384px / 2)), min(calc(100vw - 2.22222rem), 384px)" width="192" height="108" src="/sites/default/files/styles/small_16x9_100/public/media-uploads/h_25.1446752_2400.jpg.jpg?h=c3635fa2&amp;itok=f4-hr4Jr" alt="An older woman sits outside of a tent with children playing around her" /> </a> </div> <div class="c-mini-teaser__content"> <h3 class="c-mini-teaser__title"> <a class="c-mini-teaser__title-link" href="/stories/climate-migration-equity">Climate Migration and Equity </a> </h3> </div> </article> <article data-history-node-id="67383" class="c-mini-teaser" role="article"> <div class="c-mini-teaser__media"> <a class="c-mini-teaser__media-link" href="/stories/promise-and-pitfalls-net-zero-pledges" aria-hidden="true" tabindex="-1"> <img loading="lazy" srcset="/sites/default/files/styles/small_16x9_25/public/2023-03/Google-headquarters.jpg.webp?h=96998da2&amp;itok=cXd_KabN 96w, /sites/default/files/styles/small_16x9_50/public/2023-03/Google-headquarters.jpg.webp?h=96998da2&amp;itok=6HiwvCws 192w, /sites/default/files/styles/small_16x9_75/public/2023-03/Google-headquarters.jpg.webp?h=96998da2&amp;itok=mqZRGEg1 288w, /sites/default/files/styles/small_16x9_100/public/2023-03/Google-headquarters.jpg.webp?h=96998da2&amp;itok=gviGbdIC 384w, /sites/default/files/styles/small_16x9_150/public/2023-03/Google-headquarters.jpg.webp?h=96998da2&amp;itok=KcjsmiHw 576w, /sites/default/files/styles/small_16x9_200/public/2023-03/Google-headquarters.jpg.webp?h=96998da2&amp;itok=Q_zGcV9i 768w" sizes="(min-width: 1478px) min(calc(0.1 * (100vw - 4.44444rem)), calc(384px / 2.5)), (min-width: 1024px) calc((100vw - 4.44444rem) / 4), (min-width: 808px) calc((100vw - 2.22222rem) / 4), (min-width: 390px) min(calc((100vw - 2.22222rem) / 2.5), calc(384px / 2)), min(calc(100vw - 2.22222rem), 384px)" width="192" height="108" src="/sites/default/files/styles/small_16x9_100/public/2023-03/Google-headquarters.jpg.jpg?h=96998da2&amp;itok=gviGbdIC" alt="" /> </a> </div> <div class="c-mini-teaser__content"> <h3 class="c-mini-teaser__title"> <a class="c-mini-teaser__title-link" href="/stories/promise-and-pitfalls-net-zero-pledges">The Promise and Pitfalls of Net-Zero Pledges </a> </h3> </div> </article> <article data-history-node-id="53919" class="c-mini-teaser" role="article"> <div class="c-mini-teaser__media"> <a class="c-mini-teaser__media-link" href="/stories/heres-whats-happening-cop26" aria-hidden="true" tabindex="-1"> <img alt="" loading="lazy" srcset="/sites/default/files/styles/small_16x9_25/public/media-uploads/nrdc_21302496239144_2400.jpg.webp?h=c3635fa2&amp;itok=W4KzZ95- 96w, /sites/default/files/styles/small_16x9_50/public/media-uploads/nrdc_21302496239144_2400.jpg.webp?h=c3635fa2&amp;itok=9DJ69atx 192w, /sites/default/files/styles/small_16x9_75/public/media-uploads/nrdc_21302496239144_2400.jpg.webp?h=c3635fa2&amp;itok=_1b4WDNX 288w, /sites/default/files/styles/small_16x9_100/public/media-uploads/nrdc_21302496239144_2400.jpg.webp?h=c3635fa2&amp;itok=LxXA5ASk 384w, /sites/default/files/styles/small_16x9_150/public/media-uploads/nrdc_21302496239144_2400.jpg.webp?h=c3635fa2&amp;itok=oNlFFzk3 576w, /sites/default/files/styles/small_16x9_200/public/media-uploads/nrdc_21302496239144_2400.jpg.webp?h=c3635fa2&amp;itok=usBgczb7 768w" sizes="(min-width: 1478px) min(calc(0.1 * (100vw - 4.44444rem)), calc(384px / 2.5)), (min-width: 1024px) calc((100vw - 4.44444rem) / 4), (min-width: 808px) calc((100vw - 2.22222rem) / 4), (min-width: 390px) min(calc((100vw - 2.22222rem) / 2.5), calc(384px / 2)), min(calc(100vw - 2.22222rem), 384px)" width="192" height="108" src="/sites/default/files/styles/small_16x9_100/public/media-uploads/nrdc_21302496239144_2400.jpg.jpg?h=c3635fa2&amp;itok=LxXA5ASk" /> </a> </div> <div class="c-mini-teaser__content"> <h3 class="c-mini-teaser__title"> <a class="c-mini-teaser__title-link" href="/stories/heres-whats-happening-cop26">Here’s What’s Happening at COP26 </a> </h3> </div> </article> </div> </div> </div> <div class="l-page__main"> <div class="c-wysiwyg u-clearfix" data-wysiwyg> <h2 class="h5">What does the money that is available pay for?</h2> <p>The money is supposed to fund both mitigation and adaptation in developing countries, which reduce emissions and help residents cope with expected climate impacts. But even this gets murky—and not just because no single organization tracks the projects that are funded. The other problem is that countries define mitigation and adaptation differently. Yes, money that goes toward the installation of solar panels or the erection of seawalls feels clear cut. But what about the building of new roads, which have been labeled by some countries as “climate-relevant,” or, as was included in Japan’s tally in 2017, funding for “cleaner” coal plants in Bangladesh? This is why Oxfam estimates that true climate-related finance has been <a href="https://oxfamilibrary.openrepository.com/bitstream/handle/10546/621066/bp-climate-finance-shadow-report-2020-201020-en.pdf">significantly overreported</a>.</p> <p>The balance between adaptation and mitigation is also fraught. Adaptation is notoriously harder to fund, particularly from private sources—likely because those projects tend to mostly benefit local residents and don’t generate significant profits. In 2019, for example, just <a href="https://www.oecd.org/newsroom/statement-from-oecd-secretary-general-mathias-cormann-on-climate-finance-in-2019.htm">25 percent of climate finance went toward adaptation</a>.</p> <p>Whether these projects are ultimately successful at achieving their goals is <a href="https://www.oecd-ilibrary.org/docserver/5jzb44nmnbd2-en.pdf?expires=1639081282&amp;id=id&amp;accname=guest&amp;checksum=2F85B19B7491840C9430FAF2062AC799">another data problem</a>. Not only is success project-specific—ranging from, say, emissions reductions to the prevention of <a href="https://www.nrdc.org/stories/what-climate-gentrification">climate gentrification</a>—but also data on outcomes remains challenging to collect and often lags years behind.</p> <h2 class="h5">Did last year’s COP26 in Glasgow help address any of the current obstacles?</h2> <p>The $100 billion broken promise certainly loomed large, and some countries took the opportunity to up their commitments. For example, ahead of Glasgow, President Joe Biden proposed $11.4 billion in annual U.S. climate funding by 2024, but that requires congressional approval, which remains far from a sure thing. It’s also still only a portion of what is actually owed: The United States has emitted a quarter of all historical emissions, according to estimates from the World Resources Institute, and should pay as much as <a href="https://files.wri.org/d8/s3fs-public/2021-10/breakdown-developed-countries-public-climate-finance-contributions-towards-100-billion.pdf?VersionId=0luvOD5zVLLxxfRpWad_DyFC3Qh4sjd0">47 percent of that $100 billion</a> per year.</p> <p>At COP26, developing countries also demanded additional money for <a href="https://www.reuters.com/business/cop/climate-loss-damage-earns-recognition-little-action-cop26-deal-2021-11-13/">“loss and damage”</a>—the costs accrued from climate impacts beyond what could be adapted to—but no specific funding promise was made. (There were some inroads, thankfully, on increasing the share of <a href="https://www.globalpolicyjournal.com/blog/16/11/2021/100-billion-dollar-question-cop26-glasgow-and-climate-finance">adaptation finance</a>.) Countries also attempted to remedy some of the data dilemmas with <a href="https://ukcop26.org/wp-content/uploads/2021/10/Climate-Finance-Delivery-Plan-1.pdf">new transparency and tracking requirements</a> but again failed to nail down uniform definitions on what counts as climate finance. At best, wealthy nations suggested that the $100 billion target would <a href="https://www.nytimes.com/2021/10/25/climate/100-billion-climate-aid-cop26.html">likely be met by 2023</a> and that funding should increase from there.</p> <h2 class="h5">How much do developing nations truly need for climate adaptation?</h2> <p>The $100 billion per year was always a starting point that would increase over time. And that’s good because the U.N.’s Intergovernmental Panel on Climate Change (IPCC) estimates that developing nations will need as much as <a href="https://news.un.org/en/story/2021/11/1104852">$300 billion per year</a> just for adaptation by decade’s end. The IPCC’s estimates for the world economy to transition to clean energy at the pace required to keep warming within the 1.5 degree Celsius threshold put the cost at up to <a href="https://www.climatepolicyinitiative.org/publication/global-landscape-of-climate-finance-2019/">$3.8 trillion annually by 2050</a>. And that’s still <a href="https://www.nytimes.com/2021/04/22/climate/climate-change-economy.html">trillions less</a> than a worst-case climate scenario.&nbsp;</p> <h2 class="h5">So why does the $100 billion remain so important?</h2> <p>NRDC’s Guy calls the $100 billion a pragmatic, political, and ethical imperative. The whole world needs to <a href="https://www.nrdc.org/stories/ipcc-climate-change-report-why-it-matters-everyone-planet">transition away from fossil fuels</a>—and fast, if we’re to keep warming below 1.5 degrees Celsius. But developing countries don’t always have the resources to do so, or doing so may require them to trade off short-term economic gains that could be made through keeping older, polluting infrastructure in play. The money is a pragmatic necessity to reduce emissions quickly enough <em>and</em> protect people in the process.</p> <p>Politically, not meeting the $100 billion goal represents a significant breach of global trust when climate action requires steadfast international cooperation.</p> <p>Most importantly, rich nations have an ethical responsibility to fix the crisis they caused. “There is a clear and compelling moral case to help countries most at risk, such as small islands and countries that have contributed virtually nothing to the problem in terms of emissions,” Guy says. Investing $100 billion per year represents the bare minimum toward righting such a catastrophic wrong.</p> </div> </div> <div class="l-page__main"> <div class="c-wysiwyg u-clearfix" data-wysiwyg> <hr> <p><em><small>This NRDC.org story is available for online republication by news media outlets or nonprofits under these conditions: The writer(s) must be credited with a byline; you must note prominently that the story was originally published by NRDC.org and link to the original; the story cannot be edited (beyond simple things such as grammar); you can’t resell the story in any form or grant republishing rights to other outlets; you can’t republish our material wholesale or automatically—you need to select stories individually; you can’t republish the photos or graphics on our site without specific permission; you should </small></em><a href="/contact-us"><em><small>drop us a note</small></em></a><em><small> to let us know when you’ve used one of our stories.</small></em></p> </div> </div> <div class="l-page__main u-spaced-2-above"> <div class="c-field c-field--name-field-issue-terms c-field--type-entity-reference c-field--label-hidden"> <div class="c-field__label">Related Issues</div> <a class="c-button c-button--tertiary" href="/issues/sustainable-cities" rel="nofollow">Sustainable Cities</a> <a class="c-button c-button--tertiary" href="/issues/equity-justice" rel="nofollow">Equity &amp; Justice</a> <a class="c-button c-button--tertiary" href="/issues/sustainable-finance" rel="nofollow">Sustainable Finance</a></div></div> <div class="l-page__full-bleed"> <section class="l-section has-top-border"> <div class="l-constrain"> <div class="l-section__main"> <h2 class="l-section__title">Related Stories</h2> <div class="l-section__content"> <div class="c-view c-view--related-content c-view--display-news_commentary_how_to_guide_issue_location_audience view js-view-dom-id-19762983981140b64c46a1565c56cba789ec3dcdee366ccf69c1b193ae6e30f2"> <div class="l-card-grid l-card-grid--carousel" data-card-grid-carousel> <a class="l-card-grid__skipnav u-visually-hidden u-focusable" href="#carousel">Skip carousel items</a> <div class="l-card-grid__controls" data-card-grid-carousel-controls> <button class="l-card-grid__prev" aria-label="Previous"> <svg class="c-icon is-left icon--card-grid" role="img" aria-hidden="true"><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#angle"></use></svg></button> <button class="l-card-grid__next" aria-label="Next"> <svg class="c-icon is-right icon--card-grid" role="img" aria-hidden="true"><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#angle"></use></svg></button> </div> <div class="l-card-grid__content" data-card-grid-carousel-content > <div data-history-node-id="53797" class="c-card"> <div class="c-card__wrapper"> <div class="c-card__media"> <img alt="" loading="lazy" srcset="/sites/default/files/styles/medium_16x9_25/public/media-uploads/gettyimages-1346390178_2400.jpg.webp?h=c3635fa2&amp;itok=wnSqqNeY 192w, /sites/default/files/styles/medium_16x9_50/public/media-uploads/gettyimages-1346390178_2400.jpg.webp?h=c3635fa2&amp;itok=su-OK3Nj 384w, /sites/default/files/styles/medium_16x9_75/public/media-uploads/gettyimages-1346390178_2400.jpg.webp?h=c3635fa2&amp;itok=iyLi1xsT 576w, /sites/default/files/styles/medium_16x9_100/public/media-uploads/gettyimages-1346390178_2400.jpg.webp?h=c3635fa2&amp;itok=l0DJoSie 768w, /sites/default/files/styles/medium_16x9_150/public/media-uploads/gettyimages-1346390178_2400.jpg.webp?h=c3635fa2&amp;itok=ARvPOLS5 1152w, /sites/default/files/styles/medium_16x9_200/public/media-uploads/gettyimages-1346390178_2400.jpg.webp?h=c3635fa2&amp;itok=TIFJpSWb 1360w" sizes="(min-width: 1044px) min(calc((100vw - 4.44444rem - 3.55556rem) / 3), 491px), (min-width: 1024px) calc((100vw - 4.44444rem - 1.77778rem) / 2), (min-width: 1004px) calc((100vw - 2.22222rem - 3.55556rem) / 3), (min-width: 672px) calc((100vw - 2.22222rem - 1.77778rem) / 2), calc(100vw - 2.22222rem)" width="576" height="324" src="/sites/default/files/styles/medium_16x9_100/public/media-uploads/gettyimages-1346390178_2400.jpg.jpg?h=c3635fa2&amp;itok=l0DJoSie" /> </div> <div class="c-card__content"> <a class="c-card__link" href="/stories/will-cop26-move-us-closer-solving-climate-crisis"><h3 class="c-card__title">Will COP26 Move Us Closer to Solving the Climate Crisis? </h3></a> <div class="c-card__details"><span class="c-card__detail"><time datetime="2021-10-26T12:00:00Z">October 26, 2021</time> </span><span class="c-card__detail">Explainer</span><span class="c-card__detail">International, United States</span></div> <div class="c-card__summary"> Leaders from across the globe will meet soon to accelerate actions to confront climate change. Here’s what to expect. </div> </div> </div> </div> <div data-history-node-id="17633" class="c-card"> <div class="c-card__wrapper"> <div class="c-card__media"> <img loading="lazy" srcset="/sites/default/files/styles/medium_16x9_25/public/23304884889_e840e1e3cb_k.jpg.webp?h=f4761ccc&amp;itok=CqIPZZLS 192w, /sites/default/files/styles/medium_16x9_50/public/23304884889_e840e1e3cb_k.jpg.webp?h=f4761ccc&amp;itok=WzGfPpaJ 384w, /sites/default/files/styles/medium_16x9_75/public/23304884889_e840e1e3cb_k.jpg.webp?h=f4761ccc&amp;itok=1VoGRd80 576w, /sites/default/files/styles/medium_16x9_100/public/23304884889_e840e1e3cb_k.jpg.webp?h=f4761ccc&amp;itok=VEbVgA2m 768w, /sites/default/files/styles/medium_16x9_150/public/23304884889_e840e1e3cb_k.jpg.webp?h=f4761ccc&amp;itok=49et3Z4j 1152w, /sites/default/files/styles/medium_16x9_200/public/23304884889_e840e1e3cb_k.jpg.webp?h=f4761ccc&amp;itok=ZiyZQZr- 1360w" sizes="(min-width: 1044px) min(calc((100vw - 4.44444rem - 3.55556rem) / 3), 491px), (min-width: 1024px) calc((100vw - 4.44444rem - 1.77778rem) / 2), (min-width: 1004px) calc((100vw - 2.22222rem - 3.55556rem) / 3), (min-width: 672px) calc((100vw - 2.22222rem - 1.77778rem) / 2), calc(100vw - 2.22222rem)" width="576" height="324" src="/sites/default/files/styles/medium_16x9_100/public/23304884889_e840e1e3cb_k.jpg.jpg?h=f4761ccc&amp;itok=VEbVgA2m" alt="" /> </div> <div class="c-card__content"> <a class="c-card__link" href="/stories/latin-quarter"><h3 class="c-card__title">The Latin Quarter </h3></a> <div class="c-card__details"><span class="c-card__detail"><time datetime="2015-12-11T12:00:00Z">December 11, 2015</time> </span><span class="c-card__detail">Explainer</span><span class="c-card__detail">International, Brazil, Mexico, Costa Rica, Peru, Colombia, Panama</span><span class="c-card__detail">Brian Palmer</span></div> <div class="c-card__summary"> Latin America is key to addressing climate change at the Paris conference. 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