With reference to the Copenhagen Accord and climate finance, consider the
following statements —
1. The Copenhagen Accord aimed to mobilise $100 billion annually by 2020 to
assist developing nations in combating climate change.
2. One of the challenges in fulfilling this commitment has been the over-reporting
of climate finance, where developed countries report actual disbursals rather than
pledges.
3. A large proportion of climate finance is provided as loans rather than grants,
which has raised concerns about increasing the debt burden of developing
countries.
Select the correct codes from below -
Explanation - The Copenhagen Accord is a political agreement that was reached
in 2009 at the 15th session of the UNFCCC. At the Copenhagen Accord,
developed nations pledged to provide $100 billion annually in climate finance by
2020 to help developing countries combat climate change. However, this goal
has not been fully realized. Key issues with this commitment include:
Over-reporting — Developed nations often report commitments rather than actual
disbursals of funds. Reclassification of aid — Existing development aid is
sometimes rebranded as climate finance, reducing the impact of new and
additional funding. Loans vs. Grants — A significant portion of the reported
climate finance consists of loans, not grants, adding to the debt burden of
developing countries. For instance, in 2022, 69.4% of international public climate
finance was in the form of loans, with only 28% provided as grants. Developing
nations argue that climate finance should be predominantly grants or at least
concessional loans (loans with low-interest rates), to avoid increasing their
financial burdens.
Explanation - The Copenhagen Accord is a political agreement that was reached
in 2009 at the 15th session of the UNFCCC. At the Copenhagen Accord,
developed nations pledged to provide $100 billion annually in climate finance by
2020 to help developing countries combat climate change. However, this goal
has not been fully realized. Key issues with this commitment include:
Over-reporting — Developed nations often report commitments rather than actual
disbursals of funds. Reclassification of aid — Existing development aid is
sometimes rebranded as climate finance, reducing the impact of new and
additional funding. Loans vs. Grants — A significant portion of the reported
climate finance consists of loans, not grants, adding to the debt burden of
developing countries. For instance, in 2022, 69.4% of international public climate
finance was in the form of loans, with only 28% provided as grants. Developing
nations argue that climate finance should be predominantly grants or at least
concessional loans (loans with low-interest rates), to avoid increasing their
financial burdens.
