International Climate Finance


The present Trump administration has retreated from all international climate financial activities. It means that non-federal actors are compelled to fill the resultant vacuum. The climate movement, in a thumbs-down to the federal government, has gained ground until now and expected to continue to do so in the coming year. The December 2017 One Planet Summit and September 2018 Global Climate Action Summit are important dates for the movement. The movement's credibility is dependent on whether it can deliver on the finance initiatives for developing countries vulnerable to climate change.

Alternative US climate change organizations

The Paris Agreement has a large number of supporters in the US. The list of supporters include cities, governmental organizations, companies, tribes, and even states. The list of such initiatives includes America's Pledge and the US Climate Alliance. They represent the fact that a major portion of the US population remains committed to positive climate action. It has been established that cities and also states which support the agreement presently constitutes almost 50 percent of the American populace. In financial terms, they make up half of the GDP of the United States.

Not much attention was at first focused on international climate finance as compared to the reduction of the emission of the US greenhouse gases. The former is vital for the latter to succeed. Mobilizing the needed finance for highly susceptible and low-income countries to follow a low carbon development model and to make preparations for the change in climate comes center-stage of Paris Agreement. A number of multilateral climate funds like Green Climate Fund and Adaptation Fund are of specific international importance due to concessional resources and the inclusive participation.

America's Climate Fund

The World Resources Institute and Center for American Progress, in a discussion paper, proposed the creation of “America's Climate Fund”, a finance vehicle. This entity will accept contributions from a number of American sources. These may include crowdfunding campaigns. The contributions could then be channeled to support the needed low carbon development. The money will also be provided for climate resilience in the developing countries.

The federal finance will not be replaced by America's Climate Fund. It would also be not the only effort made to maintain the climate finance under the present administration. This fund is not expected to bridge the gap which now amounts to a huge two billion dollars. This amount of money is the difference between what the United States has promised and what it has actually provided to the Green Climate Fund.

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