The European Council today approved conclusions on climate finance ahead of the UN Cop 28 climate summit and said that a $100bn/yr climate finance goal should be met this year.
The $100bn/yr target was set in 2009. Developed countries committed to provide developing nations with that level of climate finance between 2020-25, though it has not yet been reached. Separate member states, including Germany, have said the goal will be hit this year, but it is the first time the EU has collectively confirmed the expectation.
Climate finance is likely to be a key focus at Cop 28. A lack of finance for both cutting emissions and adapting to climate change has blocked progress at climate talks at and since Cop 27 last year.
The EU, including its multilateral development bank (MDB) the European Investment Bank (EIB), "is the biggest contributor of public climate finance for developing countries worldwide", the council said today. Ten MDBs, including the EIB, jointly provided $99.5bn in climate finance in 2022.
The council today emphasised the EU's "strong commitment to deliver on climate finance" and reaffirmed its support for existing pledges, including the Paris climate agreement. It has called for EU member states to end export credits for fossil fuel projects, but it has watered down the language for financial institutions, writing that it "invites" MDBs, other development financial institutions and export credit agencies "to phase out financing of fossil fuel energy sector projects as soon as possible".
The council also affirmed that the EU will "work constructively" towards the Cop 27 mandate, including on a dedicated loss and damage fund. Loss and damage refers to the unavoidable and irreversible effects of climate change. Parties agreed at Cop 27 to establish a fund, though all details remain outstanding. A transitional committee, set up to make recommendations, is meeting for the fourth and final time ahead of Cop 28 from 17-20 October.
The EU yesterday set its climate negotiating position ahead of Cop 28.
