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Rich nations failed to meet $100 bn climate finance promise in 2022: Oxfam

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Rich nations failed to meet $100 bn climate finance promise in 2022: Oxfam

Illustration: Binay Sinha


Rich countries falsely claimed that they provided nearly $ 116 billion in climate finance to developing countries in 2022, while the actual financial support given was not more than $ 35 billion, according to global non-profit organization Oxfam International.


At the 2009 UN climate conference in Copenhagen, rich nations pledged to provide $ 100 billion annually from 2020 to help developing countries mitigate and adapt to climate change. However, delays in achieving this goal have eroded trust between developed and developing nations and have been a continual source of contention during annual climate negotiations.


In May, the Organization for Economic Co-operation and Development (OECD) said that developed countries had met the long-standing $ 100-billion-a-year promise by providing nearly $ 116 billion in climate finance to developing countries in 2022.

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However, nearly 70 per cent of this money was in the form of loans, many of which were provided at profitable market rates, adding to the debt burden of already heavily indebted countries.


“Rich countries have again effectively short-changed low- and middle-income countries by as much as $ 88 billion in 2022,” Oxfam said.


Oxfam estimated that the “true value” of climate finance provided by rich countries in 2022 is as little as $ 28 billion and no more than $ 35 billion, with at most only $ 15 billion earmarked for adaptation, which is crucial for helping climate-vulnerable countries address the worsening impacts of the climate crisis.


This discrepancy between financial promises and reality continues to undermine the trust needed between countries and is materially vital, as climate action in many countries depends on this climate finance, it said.

Chiara Liguori, Oxfam GB’s Senior Climate Justice Policy Advisor, said: Rich countries have been short-changing lower income countries for years by doing climate finance on the cheap. Claims that they are now on track with their financial promises are overstated, with the real financial effort much lower than the reported figure seems to suggest.”
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Oxfam’s figures reflected climate-related loans as their grant equivalents, rather than at their face value, in order to gauge rich countries’ real financial effort.


The organisation also accounted for the difference between loans at market rate and those at preferential terms, while also considering the overly generous claims about the climate-related significance of these funds.


Low- and middle-income countries should instead get most of the money in grants, which also need to be better targeted toward authentic climate-related initiatives that will help them adapt to the impacts of the climate crisis and move away from polluting fossil fuels,” Liguori said.


At the moment they’re being penalized twice. First, by the climate harm they did little to cause, and then by paying interest on the loans they’re having to take to deal with it.


Oxfam said its estimates are based on original research by INKA Consult and Steve Cutts using the latest OECD climate-related development finance datasets for 2021 and 2022. Figures are rounded to the nearest 0.5 billion.

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According to new data from the OECD, rich countries claimed they mobilized $ 115.9 billion in climate finance for Global South countries in 2022. Nearly $ 92 billion of the reported amount was provided as public finance, with 69.4 per cent of public finance provided as loans in 2022, up from 67.7 per cent in 2021.


According to the United Nations Environment Programme (UNEP), the funds required for adaptation in developing countries are estimated to be between $ 215 billion and $ 387 billion per year this decade.


Climate finance will be at the centre of the UN climate conference in Baku, Azerbaijan, where the world will reach the deadline to agree on the New Collective Quantified Goal (NCQG) the new amount developed nations must mobilize every year starting 2025 to support climate action in developing countries.


However, a consensus on NCQG will not be easy.


Some rich nations argue that countries with high emissions and higher economic capacities, such as China and petro-states that classify themselves as developing countries under the Paris Agreement, should also contribute to climate finance.

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Developing countries, however, cite Article 9 of the Paris Agreement, which states that climate finance should flow from developed to developing nations.


Developed countries want the funds to prioritize nations most vulnerable to climate impacts, such as the least developed countries and small island developing states. Developing countries assert that they all deserve support.


Developing nations also demand clarity on what constitutes climate finance, insisting that development finance should not be counted as climate finance and that funds should not be provided as loans, as has happened in the past.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 11 2024 | 9:57 PM IST

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Dattaguru Mahabal Joins MPCA As Chief Financial Officer

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Dattaguru Mahabal Joins MPCA As Chief Financial Officer

EXCLUSIVE: Dattaguru Mahabal has joined Brad Krevoy’s Motion Picture Corporation of America as Chief Financial Officer.

In his new role, Mahabal will focus on providing financial and strategic leadership to MPCA, as part of the company’s goal of bringing world-class films and television series to market. With over 20 years of financial leadership across the media, technology and energy industries, he brings expertise in Corporate Finance, M&A, and strategic financial planning.

Prior to joining MPCA, Mahabal held senior leadership positions at Boat Rocker Media, Guru Studio, and Blue Ant Media. He holds an MBA from Texas Christian University, is a Canadian CPA, and currently lives in Toronto.

Said Krevoy of his new hire, “Dattaguru has already proven an invaluable asset to our team. He has hit the ground running, and I’m confident his expertise will carry MPCA to new heights.”

Over the course of its 37 years in the business, MPCA has produced more than 250 projects for film and TV, finding success in a wide variety of genres, from family-friendly entertainment to big commercial comedies. Most recently, the company unveiled the Netflix rom-com Mother of the Bride, starring Brooke Shields, Benjamin Bratt and Miranda Cosgrove, which spent five weeks in the Global Top 10 Films (English) and reached the Top 10 Films in 92 countries. Prior to that, MPCA debuted Janeen Damian’s rom-com Irish Wish, starring Lindsay Lohan and Ed Speleers, which hit #1 in 69 countries in its first weekend on Netflix.

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Recently seeing Republic Pictures release its film The Image of You, starring Sasha Pieterse, Parker Young, Nestor Carbonell and Mira Sorvino, MPCA is also in business with the distributor on the upcoming rom-com Winter Spring Summer or Fall, starring Jenna Ortega, which recently premiered at the Tribeca Festival.

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Pakistan is looking for external financing avenues, finance minister says

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Pakistan is looking for external financing avenues, finance minister says
Pakistan will focus on meeting its external financing needs by speaking with foreign governments and lenders to draw foreign investment as well as seeking loan rollovers, the country’s finance minister told Reuters on Friday, as his government prepares to execute its new $7 billion International Monetary Fund agreement.
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SB Finance now offers financing for solar panels

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SB Finance now offers financing for solar panels

In line with its push for sustainability, SB Finance, an affiliate of Security Bank, now offers loans for customers who want to have solar panels installed in their homes. Made possible through a partnership with Advanced Energy Technologies (AET) Renewables Plus Co., and with Solviva Energy, a part of AboitizPower, (via SeekCap), customers may now avail of financing plans for solar power system installations. 

“SB Finance is proud to lead the charge in financing sustainable living by offering accessible loans for rooftop solar panels. By making solar energy investments more accessible, we empower our customers to make eco-friendly choices that positively impact their finances, as well as the environment. This financing initiative highlights our commitment to supporting renewable energy, and creating a more sustainable future,” said SB Finance President and CEO Abbie Dans-Casanova.

The partnerships between SB Finance and solar panel system providers combine accessible financing and renewable energy technology tailored to the needs of customers through the company’s non-collateralized Personal Loan product, which is the exclusive provider of installment plans for both Solviva and AET solar power systems.

“Partnering with SB Finance aligns perfectly with our mission to expand access to renewable energy. Through this, we’re able to provide affordable financing options, and make it easier for homeowners to invest in solar power, help reduce their electricity costs, and contribute to environmental sustainability,” said West Stewart, Chief Operating Officer of AET.

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With SB Finance Personal Loan, customers can borrow loan amounts of up to PHP 2 million, payable for up to 36 months, to finance their rooftop solar system installation.

Interested clients can contact Solviva or AET, book a site visit to determine what type of solar power installation is suited to their homes, and opt for the financing plans offered by SB Finance. After assessment, the solar companies will provide a quotation which will be the basis of the loan amount they can borrow from SB Finance.

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This article is brought to you by SB Finance.

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