At the UN Climate Change Conference in Cancún in 2010, $100 billion a year was pledged by wealthy countries to finance climate change mitigation. But where will this money come from? It is unrealistic to expect it to come from national budgets of countries currently facing huge budget deficits. The funding problem must therefore be solved at the international level.
To use the new Special Drawing Rights (SDR) of the International Monetary Fund (IMF) to finance the global renewable energy transition. This will bridge the gap between the urgent financial needs of less industrialised countries and the current political inability of rich countries to provide required funding.
The WFC has introduced its innovative solution of financing global climate change mitigation with the IMF’s new Special Drawing Rights at the international UN Climate Conferences in Copenhagen, Cancun and Durban, as well as to various governments and the IMF, thereby constantly increasing its visibility and profile.
Our proposal Breaking the Funding Deadlock explains this policy solution in detail >>
For more information, please read the corresponding scientific discussion paper
Financing Climate Protection with Newly Created SDRs >>
The World Future Council addresses climate finance as an issue of climate and energy as well as one of sustainable economies, reflecting our holistic approach to policy solutions. More information about our work on sustainable economies can be found here.