Updated November 2014
Mobilizing public and private climate finance is a major priority for the United States. In December 2009, President Obama and heads of state from around the world met in Copenhagen at the 15th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). The resulting Copenhagen Accord secured, for the first time, an agreement that all major economies, developed and developing, will take meaningful steps to reduce their emissions. In addition, the Copenhagen Accord contained a number of provisions to support developing countries, particularly the poorest and most vulnerable, in their transition to low-carbon, climate-resilient economies:
Developed countries fulfilled the fast start finance commitment by providing approximately $33 billion in new and additional public resources over 2010-2012 to facilitate robust climate action in developing countries. U.S. public climate finance over this period totaled $7.5 billion, including $4.7 billion in congressionally appropriated assistance, $2 billion in development finance, and $750 million in export credit. The annual average over this period is more than six times greater than annual U.S. climate finance provided before 2009.
The United States and other countries are now working to collectively mobilize $100 billion in climate finance per year by 2020, from a wide variety of public and private sources, to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation. In 2013, U.S. public climate finance increased to $2.7 billion from $2.3 billion in 2012.
The table below summarizes U.S. public climate finance since Fiscal Year 2010.
|U.S. Climate Finance FY 2010-2013|
|By Channel (in US$ millions)|
|Congressionally Appropriated Grant-based Assistance||1,587.9||1,884.1||1,261.7||1,217.4||5,951.1|
|Congressionally Appropriated Grant-based Assistance by Pillar (in US$ millions)|
Note: Included in these totals are (1) activities that were conceived and funded specifically to achieve climate-related objectives, and (2) activities that provide climate co-benefits (for example, biodiversity and food security activities). In cases where only a fraction of a program's budget supports climate benefits, only that relevant fraction has been counted, not the entire program budget. Congressionally appropriated grant-based assistance is channeled through USAID, State, Treasury, MCC, and other U.S. agencies; development finance is channeled through the Overseas Private Investment Corporation (OPIC); export credit is channeled through the Export-Import Bank. These figures do not include U.S. contributions to the ordinary capital resources of Multilateral Development Banks, a portion of which are used to finance climate-specific activities.
The United States supports the Green Climate Fund (GCF), serves as a member of the GCF Board and, with other developed and developing country contributors, is participating in the initial resource mobilization process of the GCF. The U.S. views a well-designed GCF as an important entity that will make significant and ambitious contributions to global efforts to address climate change. As called for in the Copenhagen Accord, a significant portion of multilateral funding for adaptation will flow through the GCF. Specifically, it will aim for an allocation of 50 percent mitigation and 50 percent adaptation, on a grant-equivalent basis, over time, with 50 percent allocation of the adaptation funding for African states, Least Developed Countries, and Small Island Developing States. Recognizing that any effective solution to mobilizing resources at the scale needed will require engaging private capital, the United States strongly supported the creation of the GCF’s Private Sector Facility. The Private Sector Facility aims to mobilize capital from private sector entities from both developed and developing countries and facilitate innovative instruments that catalyze greater private sector investment in developing countries. The Private Sector Facility will play a key role in supporting entrepreneurs developing low-carbon technologies and projects, as well as adaptation efforts implemented in partnership with the private sector.