Germany exceeds climate finance target

: Emissions
23/09/29

Germany exceeded its international climate finance target by making more than €6bn available last year, the government announced today, calling on other industrialised countries to "pay their fair share".

Germany's federal government last year made a total of €6.39bn available from budget funds for climate action and adaptation in developing countries.

This is about €1bn more than was made available in 2021 and exceeds the annual target of €6bn in climate financing from public funds promised by chancellor Olaf Scholz for 2025, the federal ministries of economic co-operation and development, and economic affairs and climate action, said today. The government informed the European Commission on its climate finance on 28 September, in line with requirements for all member states.

Germany therefore is contributing its "fair share" to the pledge of industrialised countries to mobilise $100bn/yr to combat climate change in developing and emerging countries, the ministries said.

Other industrialised countries now also must pay their "fair share of our shared promise", development minister Svenja Schulze said. This is not just a "central question of trust between industrialised and developing countries", Schulze said, but it would "also help us to hold other countries such as China and the gulf states responsible for climate financing".

The government intends to focus more on leveraging private capital in the future, "and thus increase effectiveness", economy and climate minister Robert Habeck said.

About 44pc of the funds provided last year went to adaptation, such as food security and climate-adapted agricultural methods. As such, the federal government is "well on its way" to making its contribution to the internationally agreed goal of doubling adaptation financing to $40bn by 2025 compared with 2019, the economy and climate ministry said.

The $100bn commitment includes not only budgetary resources, but also contributions mobilised with public funds. If these market funds, along with privately mobilised funds, are taken into account, then German climate financing accounted for about €8.8bn last year. Privately mobilised funds climbed to a record level of nearly €500mn, compared with €170mn in 2021.

The larger share of Germany's climate financing went to projects agreed with partner countries, including the so-called Just Energy Transition Partnerships. Another instrument is the International Climate Initiative (IKI), which supports projects that promote climate and biodiversity protection in developing and emerging countries.

German climate financing also supported multilateral funds such as the Green Climate Fund, the Global Shield against Climate Risks and the Global Environment Facility.

By Chloe Jardine

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24/11/22

Cop: Singapore, Peru finalise carbon credit negotiation

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Brazil congress approves carbon market legislation

24/11/21

Brazil congress approves carbon market legislation

Sao Paulo, 21 November (Argus) — Brazil's lower house approved the creation of a regulated carbon market, which is seen as an essential tool for the country to meet its emissions reduction targets. The senate approved the bill earlier this month . It now awaits the president's signature to become law. The legislation, which has been the subject of legislative debates for more than three years, creates the Brazilian emissions trading system (SBCE) and stipulates that companies with emissions greater than 25,000 metric tons of CO2 equivalent (tCO2e)/yr will be subject to the cap-and-trade system. Companies with emissions from 10,000-25,000 tCO2e/yr will need to report their emissions but will not be required to offset them. The market will help Brazil reach its new nationally determined contribution (NDC), according to vice president Geraldo Alckmin. The new NDC , released earlier this month, stipulates that Brazil will reduce greenhouse gas emissions by up to 67pc from 2005 levels by 2035. Roughly 5,000 companies will be subject to the cap-and-trade system, covering about 15pc of Brazil's emissions, according to finance ministry estimates. The new market will go into effect over a six-year period in five phases. The first phase involves defining the rules that will govern the market, which can take up to two years. In the second phase, companies will be required to measure their emissions, and in the third phase report emissions and present a plan to monitor and reduce them. In the fourth phase, the trading market will begin operating and the first carbon allocation plan will go into effect. In the fifth and final phase, the market will be fully operational. As expected, the agriculture sector was excluded from the regulated market and will not have emissions-reductions targets. The law also exempts waste treatment companies, including sewage treatment and landfill operators if they can demonstrate the use of technologies that neutralize greenhouse gas emissions. The legislation also addresses regulations for the voluntary market, helping finance decarbonization projects in the agriculture and forestry sectors. Brazil has the potential to generate up to $100bn in revenues from the carbon market by 2030, according to a study by think tank ICC Brasil. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cost of government support for fossil fuels still high

24/11/21

Cost of government support for fossil fuels still high

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Cop: Talks in Baku torn between mitigation and finance

24/11/21

Cop: Talks in Baku torn between mitigation and finance

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Brazil's Bndes approves $1.2bn in Climate Fund spending

24/11/21

Brazil's Bndes approves $1.2bn in Climate Fund spending

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