The global goal for developed nations mobilize $100 billion in climate finance to their developing nation counterparts to mitigate and adapt to climate change is expected to be met in 2023, and surpassed in following years, according to a new report released by Canada and Germany ahead of the COP27 climate conference.

While the 2023 milestone represents a delay over an initial target, it marks a significant pickup over the past few years in developed countries’ climate finance commitments.

The initial goal to mobilize $100 billion per year by 2020 to support climate action in developing countries was announced in 2009, and reaffirmed in 2015’s Paris Agreement, with an agreement to extend the goal through 2025. By 2020, however, annual climate finance mobilization had only reached $83 billion, according to OECD estimates.

COP26 conference’s final agreement, the Glasgow Climate Pact, urged full delivery of the $100 billion goal annually through 2025, and emphasized the need for transparency on progress. Countries were also urged to at least double the collective provision of climate finance for adaptation to developing nations to $40 billion annually.

At the conference, several countries raised their pledges, and Canada and Germany were tasked with implementing a plan to get climate finance back on track. The progress report was provided alongside the Delivery Plan.

According to the Canada/Germany Progress Report, developed country pledges now indicate that significant progress towards the goal will be made this year, with the $100 billion mark being hit in 2023. In the report, Jonathan Wilkinson, Canada’s Minister of Environment and Climate Change, and Germany’s H.E. Jochen Flasbarth, State Secretary, Federal Ministry for the Environment, also wrote:

“The data also gives us confidence that we will likely be able to mobilize more than US$100 billion per year thereafter.”

The new Delivery Plan also includes a series of guiding principles for developed countries to consider in order to help continue to scale up climate finance, covering adaptation and grant finance, transparency, predictability and private finance mobilization.

Canada’s Steven Guilbeault, Minister of Environment and Climate Change, said:

“As the world confronts the rising impacts of climate change, it is more vital than ever for developed countries to make good on their commitments on climate finance, and to provide developing countries the resources to fight climate change, and cope with its consequences. It is our duty, and in our own self-interest, to help them build climate resilience, and more sustainable, low-carbon economies.”

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