The new leader of the world’s largest climate finance institution has issued a warning that both the US and Europe will face consequences, regardless of their own domestic policies, if clean energy investments in developing nations are not made.
Mafalda Duarte, a Portuguese national set to assume control of the UN-backed Green Climate Fund (GCF), discussed the upcoming challenges as world leaders gather in Paris to discuss climate finance reform.
Duarte emphasized the importance of investments in developing countries, stating, “If the Indias, the Africas, the Indonesias, the Chinas — if they don’t take action, then it doesn’t matter what we do in developed countries. It will impact the US and Europe, regardless.”
Wealthy nations have been struggling to fulfill their financing commitments from previous UN climate conferences. According to the OECD, out of the $100 billion promised for an adaptation fund at the Copenhagen summit 14 years ago, only $83.3 billion had been raised by the target date of 2020.
In more recent developments, rich countries have pledged funds to assist poorer nations in transitioning from coal to renewable energy sources through the Just Energy Transition Partnership.
However, the magnitude of funding required to address the climate crisis has led countries like the US and Europe to depend more heavily on multilateral lenders. Governments have urged the World Bank to expand its scope to address “global public goods,” including pandemic preparedness and climate issues.
Duarte questioned whether leaders in developed countries were doing enough to create the necessary political conditions for investing funds overseas. She emphasized the need for greater awareness among individuals, stating, “We talk about the global public goods aspect, but are we adequately educating the population about what this means? It requires investment beyond our own countries.”
Duarte expressed her concerns regarding the escalating rise in global temperatures, pointing out, “You see the news, we are going to reach a 1.5°C increase before 2027.” She stressed the importance of global leaders accepting the existential nature of the crisis and taking appropriate action.
Last December, the US Congress pledged only $1 billion to assist poorer nations in combating climate change, falling short of President Joe Biden’s promise to spend over $11 billion annually by 2024, despite passing a significant clean energy spending package domestically.
Duarte also emphasized the need for more female leaders as she prepares to lead the GCF, an institution that faced a sexual harassment scandal in 2020.
Regarding the organization’s culture, Duarte stated, “Addressing the culture is one of my top priorities,” drawing from her previous experience overseeing the $10 billion Climate Investment Fund.
Her comments come in the wake of new allegations made by female delegates who experienced intimidation or harassment by their male counterparts at the recent UN climate conference in Bonn, Germany.
Mexico, the US, UK, Germany, Peru, and Canada, among others, wrote a letter to the UN last week urging action to “ensure a harassment-free environment.” The letter highlights the need for organizers to create a respectful and safe work environment for all participants.
Duarte expressed her hope to see more women in leadership roles within the climate sphere, citing research that indicates increased female empowerment leads to better climate outcomes. She posed the question, “Why is it that when women have disposable income, they tend to invest more in education and health than men?”
While acknowledging the presence of generous men who understand the existential threat of climate change, Duarte expressed confidence that greater female representation could lead to a more assertive response in protecting future generations.
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