Paris Agreement 100 Billion
In the world of climate finance, the December 2015 Paris Agreement was a highlight. One of the most important outcomes of the summit was the commitment to mobilize $100 billion a year by 2020 in “new and additional” funds to help developing countries avoid, or at least adapt to, the worst consequences of climate change. In signing the agreement, developed countries have accepted the principle of historical responsibility for global warming and must therefore take the lead when it comes to doing something about it. AFD will spend at least EUR 3 billion on renewable energy development in Africa over the period 2016-2020, part of the commitment of 5 billion euros per year in 2020. To date, France`s contribution amounts to 46 projects, representing 2.2 billion euros, or 1.3 GW of new capacity and the connection of more than 2 million people. The credit is intended to help set up the African Renewable Energy Initiative (AREI), which is expected to provide 10GW to Africa by 2020 and 300GW in renewable energy by 2030. According to a report by the Organisation for Economic Co-operation and Development (OECD) published on Friday (September 13th), “the funding made available and mobilized by developed countries for climate action in developing countries has been increased to $71.2 billion in 2017.” The dilemma this poses to the poorest nations is clearly visible in countries like Ghana. To meet its obligations under the Paris Agreement, the West African country will need to mobilize nearly $22.6 billion in investment over the next 10 years. The government is expected to demand more than $5 billion from the Green Climate Fund. Commitments to contribute to the Green Fund thus exceed the $9.3 billion pledged at the last Berlin conference in 2014, although some contributors have yet to show their commitment. COP26 will begin discussions on setting the next climate change target within the framework of the UNFCCC. In this context, it is important to note that the IPCC has estimated that investments of $3.5 trillion would be needed to reduce greenhouse gas emissions and keep warming below 1.5 degrees Celsius.