Germany, the UK, Canada and multilateral entity Climate Investment Funds (CIF) will provide around $1.3bn of climate finance for developing low-carbon production processes and green lead markets in developing and emerging countries, they announced today.
The support aims to contribute to a "level playing field" for new climate-friendly, "green" markets, and drive forward a "successful global and fair transition to climate neutrality", Germany's federal ministry of economic affairs and climate action said.
The contribution also "sends a strong signal to the international community and generates momentum towards [the next UN climate summit] Cop 30 in Brazil", German economy and climate minister Robert Habeck said.
The German government has pledged around $220mn and the UK around $211mn, while over $900mn is to come from the CIF, with private-sector contributions leveraging the commitment, the ministry stressed. Canada will contribute unspecified "additional" funds. Further pledges from governments, civil organisations and private-sector investments will be "mobilised" over the next months, Habeck said.
CIF was established in 2008 to finance pilot projects in developing countries at the request of the G8 and G20.
The upcoming presidencies of the G7, G20 and Cop 30 aim to focus more strongly on climate finance, Habeck added.
The Germany-founded Climate Club will support the implementation of the pledge, Habeck said.
The club, which Germany views as the "central international forum for decarbonisation issues", held its second leaders' meeting last week, one year after its official launch at Cop 28 in Dubai. The club's global matchmaking platform, one of its key services, was also launched last week.
The German government is pushing for a stronger role for "green guarantees", a type of blended finance, which could limit the pressure on public finances but mobilise private funds, as the financing risk would be to an extent guaranteed by the governments of developed countries. Germany's policy makers have repeatedly stressed the importance of private capital for climate finance, given the limited availability of public funds.
The Green Guarantee Group, which was launched at Cop 28 and had its first "high-level political exchange" in Berlin last month, is to develop "concrete recommendations" before Cop 30 on how to "adjust the levers of the international financial system" so that funds flow to where they are most effective, according to Germany's economy ministry.
Germany sees itself as a leading provider of climate finance, and said it contributed €9.9bn last year, of which €5.7bn came from the federal budget.
Habeck at a side event at Cop 29 today also reiterated his call for an extra levy on oil and gas companies, which could be ploughed into funds directed at supporting climate action in developing countries.
