Rich nations make empty pledges in contributing to fast-track climate fund

New Delhi: A fast-track fund of $30 billion from the developed world to the poorest countries was one key trade-off against emerging economies like India accepting international scrutiny of their climate actions at Copenhagen. But two years on, the rich countries have contributed only 1% of the amount ($320 million) against that.
A study by International Institute for Environment and Development (IIED) has pointed out that though the rich countries have pledged $25 billion on the face of it, but $320 million have been routed through the UN.
India has consistently demanded that the funds pledged under the UN climate convention should be over and above the overseas development assistance committed earlier and routed through the convention bodies to ensure transparency, consistency and predictability of the flow.
The IIED study notes that only $415 million have been committed under the National Adaptation Programmes of Actions for the least developed countries, though the contributions required are $2 billion. The Adaptation fund was created long ago, but has remained an empty shell with developed countries contributing little to it.
The fast-track fund — set up in Copenhagen in 2009 — was meant to be invested half on mitigation and the half on adapting to climate change by the poorest countries between 2010 and 2012. But the rich countries have fallen short by a long way on their pledges.
This has raised questions about how the rich countries would ramp this up to the $100 billion annually that they had pledged on the war against climate change, starting 2020. The fears have heightened, since the developed nations are using domestic recession concerns as an excuse to hold back on their commitments.
Noting that the developed countries having put all kinds of monies as climate funds with rare exceptions have not provided information on how even pledged money is being directed The study notes, “It is difficult for both donors and recipients to assess where the money is going.”
IIED says the developed countries have remained ambiguous on the funds undermining the credibility of global promises and damaging trust in the political process.
Other studies have noted that most of the money the rich countries have pledged is prone to double accounting with countries, such as Japan, showing loans as well as private investment against their contribution to claim they have fulfilled their commitments.