The $100 billion annual climate finance commitment, agreed upon at the 2009 UN climate talks, aimed to support developing countries in their efforts to mitigate and adapt to climate change. However, this target has not been fully met due to several interconnected issues.
So, what factors contributed to the failure of the $100 billion commitment?
Total Funding: Although some developed countries have made contributions, the total promised funding has not reached the $100 billion per year mark. This has led to disappointment, especially among developing countries that rely heavily on this funding to address the impacts of climate change.
Lack of Clarity on Funding Sources: Concerns have been raised about the transparency and accountability of reported funding sources. Many of the promised funds are not new money but rather a reconfiguration of official development assistance (ODA) or loans that must be repaid, rather than grants or more appropriate forms of climate assistance.
Inequitable Allocation: Critics also point out that the distribution of funds is uneven, with most funding directed toward mitigation (emission reduction) and less toward adaptation (adjusting to the impacts of climate change), even though developing countries often require funding for adaptation.
Moreover, competing demands for funding—such as addressing urgent humanitarian crises, natural disasters, and other pressing global issues—have diverted attention and resources away from climate finance.
This combination of political reluctance, competing priorities, and systemic barriers has led to a significant gap in meeting the $100 billion target, underscoring the need for more robust, transparent, and equitable financing mechanisms to effectively support climate action in vulnerable regions.
As a result, the New Collective Quantified Goal (NCQG) was established in response to the failure to meet the $100 billion annual climate finance commitment promised in 2009 by developed countries. This $100 billion target, which was supposed to commence in 2020, is intended to assist developing countries in mitigating and adapting to the impacts of climate change. However, to date, this commitment has not been fully achieved, both in terms of amount and the effectiveness of its distribution.
References:
https://www.oxfam.org/en/press-releases/rich-countries-continued-failure-honor-their-100-billon-climate-finance-promise
UNCTAD, https://unctad.org/news/climate-finance-goal-works-developing-countries
Writer:
Komang Audina Permana Putri
Program Officer Isu Keuangan Berkelanjutan dan Utang,
Indonesia for Global Justice