What progress has been made towards the achievement of climate finance goals? Which countries have contributed most, and which have instead failed to deliver on these goals?
The study carried out by the think tank ODI examines climate finance provided by developed countries in 2021 in order to evaluate each country’s progress against the $100 billion goal.
The report provides an evaluation of the progress made towards the climate finance goals, examining each country’s contribution to the $100 billion commitment and evaluating contributions in terms of doubling adaptation finance from 2019 levels by 2025.
As a part of this study, ECCO contributed several recommendations for making new commitments and closing the existing gaps at COP28.
Key takeaways and recommendations for Italy
The analysis shows that only eight developed countries provided their fair share of climate finance in 2021. Italy provided 64% of its fair share of climate finance and 62% of its fair share of adaptation, ranking respectively in 15th and in 16th position among the twenty-three countries that were examined.
ECCO suggests that Italy should take the following actions in view of COP28:
- Accelerate the operationalisation of the Italian Climate Fund, also ensuring that this is managed with integrity and transparency, involving both Italian civil society and the local communities benefiting from the funding in decision-making.
- Establish transparent and verifiable criteria to help understand the effectiveness of the Fund in contributing to the achievement of the Paris Agreement goals.
- Ensure balanced financing between mitigation and adaptation activities, by strengthening financial incentives for the private sector to invest in adaptation actions.
- Confirm the pledge to contribute to the second refinancing period of the Green Climate Fund by doubling the previous contribution to €600 million. Italy, together with the United States, is the only G7 country that has not yet announced its contribution.
- To demonstrate continued support for the Adaptation Fund and given the record demand for projects from developing countries, Italy should increase its contribution to €60 million per year and commit to renewing it annually.
- Support the swift operationalisation of the new Loss and Damage Fund agreed at COP27, with an initial funding of €50 million.
Specifically, to close the adaptation gap of $720 million per year (€680 million), it is recommended to:
- Increase the share of grants within the ICF, aimed at facilitating interventions in fragile or conflict-affected contexts that are particularly vulnerable to climate shocks and stresses.
- Increase the share of Official Development Assistance (ODA) from 0.3% in 2022 to 0.5% by 2025 and 0.7% by 2030, aligning all cooperation with climate objectives.
In view of the imminent start of the Italian G7 Presidency and as a demonstration of its leadership on climate, Italy should sign the COP28 Presidency’s initiative on the Climate Relief, Recovery, and Peace Declaration and follow up with concrete announcements on its intention to contribute its fair share to the fight against climate change as promised last year at COP27.
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