Financing the Fight against Climate Change

Funds are needed to invest in new low-carbon energy sources, reforestation and protection of rain forests, land-use changes, and adaptation and mitigation. But there is no similar agreement on where the money will come from.

The developed countries are reluctant to make additional financial commitments. They have just experienced a significant jump in their national debts, and they still need to stimulate their domestic economies. This colours their attitudes. It looks like they will be able to cobble together a "fast-start" fund of $10 billion a year for the next few years, but more does not fit into their national budgets. This is unlikely to satisfy the developing countries.