One of the key issues in the global climate debate is climate finance – the money that developed countries mobilise to help finance the climate adaptation and green transition activities of developing countries.

At COP15 in Copenhagen in 2009, the developed countries committed to mobilise 100 billion USD annually in climate finance for developing countries from 2020 to 2025. However, there are indications that this promise will not be kept. OECD figures show that the total figure in 2018 and 2019 only amounted to approximately 80 billion USD. We do not yet have the exact figure for 2020, but due to COVID-19 is it not expected to be higher than in previous years.

Denmark is working to ensure that we, together with other developed countries, deliver the amount that we promised.  Therefore, Denmark has decided to increase our grant-based climate finance to developing countries. From 2023, it will be at least 500 million USD annually. At the same time, we will do even more to mobilise financing from other sources – including private investors – for climate investments in developing countries.

Combined, we expect these efforts to contribute at least 1 billion USD annually. This represents more than 1% of the collective goal of 100 billion USD, and more than what a country the size of Denmark is expected to contribute. 

We hope that other countries will follow Denmark’s good example so that we can keep our promise to the developing countries. This assistance is essential to the global green transition and to maintaining a conducive negotiating climate characterised by trust between all countries. Trust is necessary because the entire world must work together to effectively deal with the global climate crisis.