As the world starts to face the challenge of climate change head on, wealthier nations have been asked to put their money where their mouth is and help fund the energy transition for developing countries. To date, more than $100 billion a year has been pledged. This investigation from Reuters took a look at where the money has been going.
Turns out, it has ended up in some surprising places:
- Italy helped fund chocolate and gelato stores across Asia
- The United States offered a loan for a hotel expansion in Haiti
- Belgium invested in a film set in the Argentine rainforest
- Japan financed a new coal plant in Bangladesh and an airport expansion in Egypt
Part of the problem, argue watchdog organisations, is that climate financing is entirely self-reported. So whatever a wealthy nations considers climate financing, is climate financing.
Beyond the criticisms, this article is a fascinating look at the way international financing works through government development agencies. France loaning millions to a Chinese bank for environmental initiatives, to Mexico to upgrade its metro system and to Kenya for port improvements. The United States giving millions in insurance coverage for a hydropower project in South Africa. Japan funding developments of power plants in Bangladesh.
There is plenty of money flowing around the world under the banner of climate financing. The big challenge is to ensure it is being used to fund a global energy transition rather than domestic development priorities.
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