UK commits $2 billion to UN-backed climate fund

illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below

🗞️ Driving the news: Prime Minister Rishi Sunak announced at the G20 Leaders Summit that the UK will pledge $2 billion to the Green Climate Fund (GCF) to assist developing countries in addressing climate change
• This commitment represents the UK's most substantial financial contribution to global climate change efforts so far

🔭 The context: The GCF was established under UN climate change negotiations with the primary goal of channeling  funds to poorer nations, helping them reach their carbon reduction targets, transition to cleaner energy, and adapt to a changing climate
• The UK previously committed to spending £11.6 billion on international climate finance from 2021 to 2026

🌎 Why it matters for the planet: Investments in the GCF are essential for equipping developing nations with the tools to address climate change, and these contributions can profoundly influence global carbon emission reduction efforts

⏭️ What's next: Despite earlier suggestions of reduced funding, the increase demonstrates a renewed commitment to combating climate change, and signals the UK's changing attitude towards working with developing countries on green projects
• This boost aligns with the Group of 20's declaration emphasizing the importance of sustainable finance for developing countries aiming to achieve emission targets

💬 One quote: "Today’s pledge represents a 12.7% increase on the UK’s previous contribution to the GCF for the period of 2020-2023" (Rishi Sunak's office)

📈 One stat: Developing countries need between $5.8-5.9 trillion before 2030 to achieve their emission targets, as noted in the G20's recent declaration

Click for more news covering the latest on sustainable finance