HomeEnvironment NewsNew climate funding plan to benefit poorest countries: Report

New climate funding plan to benefit poorest countries: Report

The new proposal will be unveiled ahead of the UN COP26 climate summit, which will begin from Oct 31 in Glasgow, Scotland. There was an impasse between the developed and developing nations regarding the $100 billion per year pledge for climate funding by rich nations.

Profile image

By CNBCTV18October 25, 2021, 2:19:42 PM IST IST (Updated)

New climate funding plan to benefit poorest countries: Report

A new climate funding plan will be unveiled today in the United Kingdom with an aim to help the world’s poorest countries to cope with the severe impacts of climate change. The new proposal is being floated in an effort to break the impasse between the developed and developing countries at the United Nations Climate Change Conference.



The 26th United Nations Climate Change Conference (COP 26) will be held in Glasgow, Scotland, from October 31 to November 12.


The UK government, one of the hosts of the COP 26, will unveil the proposal along with ministers from Germany and Canada, who have been given the responsibility of coming up with a plan for climate funding. The proposal has been framed with an aim to gain the backing of scores of developing countries for any deal at the COP 26 summit, according to The Guardian.





The poor countries of the world were promised, since 2009, at least $100 billion funding a year from public and private sectors in rich nations to help them meet the impact of climate change and extreme weather. The target was to be met by 2020.


However, the commitment by the rich countries has not been fulfilled till now. Only $80 billion was provided by the rich countries by 2019, the Guardian reported, quoting the data from Organisation for Economic Co-operation and Development (OECD), a global think tank on policy matters. The promised funding is essential for gaining support from the developing nations to meet the 2015 Paris agreement mandate.


The new plan, to be unveiled by the UK, will propose meeting the $100 billion aid by taking an average of the finance provided from 2020-2025, instead of single years, the Guardian report added. A significant part of the funding is expected to be devoted to adaptation rather than for cutting emissions.


A few developed nations including the United States, Germany, Canada, and Japan, among others, have already provided extra funding.


According to Alok Sharma, the UK cabinet minister who will act as COP26 president, the developed nations must deliver on the $100 billion a year promised to the developing countries as it’s a matter of trust, according to the report.


On the other hand, the UK’s own action on climate funding has drawn criticism. The UK government has recently slashed its overseas development aid from 0.7 percent of GDP to 0.5 percent. This will reduce the overseas aid by at least £4 billion a year. The UK has pledged to provide £11.6 billion over five years for climate finance.

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!