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Biden Plan Requests Historic $1.6 Billion for Green Climate Fund

March 28, 2022, 3:44 PM

President Joe Biden is calling for $1.6 billion next fiscal year for the international Green Climate Fund, a U.S. payment to help climate and clean energy efforts by poorer developing nations that was zeroed out during the Trump administration.

The Green Climate Fund remains “a critical multilateral tool for financing climate adaptation and mitigation projects in developing countries,” according to the fiscal 2023 budget request. Biden’s budget requests $11 billion in total international climate finance to meet his pledge to quadruple international climate finance and accelerate the global transition to net zero greenhouse gas emissions by 2050.

The $1.6 billion green fund request is a marked departure from the Trump administration, which halted the bulk of international climate finance provided by the U.S. Biden’s request is also more than triple the last $500 million payment the Obama administration made days before Donald Trump took office in 2017 and ended further payments.

The Green Climate Fund was one of several proposals richer industrialized nations put on the table in the run-up to the 2015 Paris Agreement to get developing countries to join the climate accord. The U.S. promised $3 billion total over four years ahead of the 2015 Paris talks, but has fallen short of that pledge.

More than $10 billion has been pledged to the GCF, mostly by richer nations, though it’s only a fraction of the $100 billion the industrialized world promised developing nations to pursue low-carbon energy sources and adapt to climate impacts. The $100 billion total is to come from a combination of public and private sources.

To contact the reporter on this story: Dean Scott in Washington at dscott@bloombergindustry.com

To contact the editor responsible for this story: Chuck McCutcheon at cmccutcheon@bloombergindustry.com