G20 MEETING THE QUESTION REMAINS: WHERE IS PROMISED $100BN A YEAR IN CLIMATE FINANCING?

WASHINGTON DC, October 13, 2021 — Reaction from Oscar Soria, Avaaz Campaign Director, to today’s G20 Finance Ministers Meeting and Communiqué:

“While G20 finance ministers continue talk about connections between the climate and financial crises, and push development banks to align their actions with the Paris Agreement on Climate, G20 finance ministers meeting today failed once again to acknowledge the commitments made by developed countries to deliver at least 100 billion per year to help developing countries adapt to the impacts of climate change.”

“Today, the International Monetary Fund Managing Director Kristalina Georgieva said that she expects rich economies to reach their target of shifting $100 billion of $650 billion in newly created emergency reserves to countries in need. But unlike the Joint G20 Energy-Climate Ministerial Communiqué from last July, G20 Finance Ministers have failed to fulfill debt promises from rich nations to poor ones. The outcome of this G20 has a name: $100 Billion Broken Promises."

“If countries like the US, UK, Australia, Italy and Canada want the world to take them seriously as climate leaders, they need to deliver on the $100 billion annual they promised in 2009 to help countries that have historically emitted vastly less emissions cope with the life shattering impacts of climate change. If we are to expect any other countries to make good on their climate commitments it has to start with rich nations delivering on their promises. This a key test ahead of the Glasgow climate conference. Not delivering this money is allowing countries like China to call the US’s bluff when it comes to their climate leadership and making it impossible to build trust and cooperation amongst the international community.”

“Rich countries need to stop saying there is no money for climate change protection. There’s plenty of money but it’s in the wrong hands and the wrong places. Consider the $5.2 trillion per year spent in fossil fuel subsidies (1) or the $542 billion per year spent on agriculture and timber subsidies (2). This money is compromising our climate stability and our ecosystems and undermining our long term economic health.”

Earlier today, Avaaz campaigners dressed as “debt collectors” reminded world leaders from Australia, Canada, Italy and the United Kingdom of their broken promise to contribute $100bn a year in climate finance to developing countries. During the 4th meeting of the G20 Finance Ministers and Central Bank Governors (taking place alongside the annual meetings of the International Monetary Fund and the World Bank), Avaaz activists stationed in front of IMF headquarters, unfurled a banner reading: “Show us the climate money - Where's the $100 billion?”

A “Delivery Plan” to mobilise at least $100bn a year for climate finance for 2020-2025, led by Germany’s State Secretary Jorgen Flasbarth and Canada’s Minister Jonathan Wilkinson, is expected to be unveiled this Monday, 18th October. But as the G20 finance ministers' talks started today in DC, there’s no indication that developed nations will fulfil that commitment, and likely break that promise for a second consecutive year.

Avaaz is calling on G20 finance ministers of developed nations to deliver financial commitments in full, including past shortfalls, to ensure the $100bn is met on average. Given most countries will not meet their 2020 or 2021 commitments, the group is urging countries to commit to delivering $600bn over 6 years from 2020 to 2025, as suggested by climate-vulnerable countries.

Avaaz is also calling on rich nations to deliver a balance between finance for adaptation and finance for mitigation. As the UN Secretary-General and climate vulnerable countries have said, there is an urgent need to scale up support to ensure 50% of public resources support adaptation. According to OECD figures, there was only $20bn for adaptation finance in 2019, an insufficient sum which the Delivery Plan should aim to at least double before 2025.

For more information and interviews: media@avaaz.org or text/call +1-703-981-0052

Notes to the editors:

(1) IMF Working Paper: Global Fossil Fuel Subsidies Remain Large: An Update Based on Country-Level Estimates (2019). Available at https://www.imf.org/~/media/Files/Publications/WP/2019/WPIEA2019089.ashx 

(2) Financing Nature: Closing the Global Biodiversity Financing Gap (2019). Available at https://www.nature.org/en-us/what-we-do/our-insights/reports/financing-nature-biodiversity-report/financing-nature-biodiversity-report-download/ (based on data from OECD, 2020. A Comprehensive Overview of Global Biodiversity Finance, available at https://www.oecd.org/environment/resources/biodiversity/report-a-comprehensive-overview-of-global-biodiversity-finance.pdf) 

FACTBOX: the fair share for key developed countries in the 100 billion finance

United States / Biden: Where's the 32-49 USD billion per year? 12 years after the Obama-Biden administration's pledge to support low income countries, we are still falling *tens of billions* short of delivering on that promise: will President Biden honor his words? To make COP26 a success, and truly "build back better", the US needs to pay its fair share of climate funding between $32-49 billion per year. President Biden’s latest climate funding commitments at the UN General Assembly are still far from what we need -- they need to be further tripled in order to meet our fair share of contributions. The US is the biggest historical contributor to the climate crisis, and the biggest economy in the world that has mobilized *trillions of dollars* for the post-Covid19 recovery. To restore America’s image in the world, Biden needs to act with the same tenacity to honor their climate funding commitments.

Canada / Trudeau: Where's the 4.4-6.0 billion CAD per year? Canada must lead by example as the co-negotiators of the 100 billion delivery plan. Their own share of contributions is falling massively short. Prime Minister Justin Trudeau can lead the way by committing to quadruple our current climate funding pledge, to meet a fair share range of at least 4.4-6.0 billion CAD per year. Canada’s recent doubling of its climate finance commitment to CAD 5.3bn over the next five years is still far from enough.

Australia / Morrison: Where's the 3.4-4.4 billion AUD per year? Australia is completely abdicating responsibility. Sydney should increase contributions by almost 15 times in order to provide our fair share of climate finance. There is still time for Prime Minister Scott Morrison to step up ahead of the Glasgow climate summit and announce a much higher pledge in the range of 3.4-4.4 billion AUD per year.

The host of this year’s climate talks: UK / Johnson: Where’s the 3.4-4.8 billion GBP per year? The United Kingdom has chosen to be in the spotlight of global climate policy by hosting the Glasgow summit. But higher visibility comes with higher accountability: Prime Minister Boris Johnson has said that COP26 must be a 'turning point for humanity'. To meet the gap towards $100 billion urgently, the UK needs to commit new and additional funding, and increase contributions by 50% to meet Britain’s full fair share (of 3.4-4.8 billion GBP per year). For the Glasgow talks to become a true turning point, this is the bare minimum to sustain this decisive decade with enough momentum to address the climate crisis. As the COP26 host, the UK has a central role to mobilize diplomatic efforts and ensure that every country is raising their ambition and contributions. To do so, the UK must lead by example and meet their fair share.

The host of this year’s G20 - Italy / Draghi: Where’s the 3.3-5.1 billion EUR per year? As host of the G20 summit in this historic year, Italy has a pivotal role to play and must lead by example. Yet Italy is falling tremendously short of our fair share of climate finance contributions - of 3.3-5.1 billion EUR per year. Prime Minister Draghi is famous for saving the Euro back in 2012 by promising to do “whatever it takes” to stop the European joint currency from falling apart. Now the world needs him to do whatever it takes to protect our climate. Where is Italian political will on the global stage when it is most needed? Prime Minister Draghi must do everything in his power to announce a higher pledge, in order to help meet the 2020-2025 shortfall and restore confidence. PM Draghi can also redouble diplomatic efforts to bring G20 economies along with us, and meet the remaining gaps to deliver 100 billion dollars per year immediately. This needs to be reflected in the G20 leaders' statement prominently.