The data is clear. Industrialised countries are responsible for more than half of the CO2 emissions emitted between 1850 and 2019, while accounting for only one-fifth of the world's population. For example, Germany is responsible for about 60 times as many historical emissions as Bangladesh. However, Germany is much less vulnerable to the impacts of climate change. Germany has therefore been committed to providing climate-relevant international support to more vulnerable countries since 1972. How does something like this work on the international level? Is Germany fulfilling its international obligations in this regard? Ann-Kristin Becker and Ina Sieberichs from the Institute for Economic Policy at the University of Cologne address these questions, among others, in their recently published article on German international climate finance, which appeared in Wirtschaftsdienst - Zeitschrift für Wirtschaftspolitik.
"In order to fulfil its promises, Germany must provide funds for climate financing in addition to the budget for conventional development funds. Climate projects must not be at the expense of other development cooperation goals. At the UN Climate Change Conference in Sharm-ash-Shaikh in November 2022, a fund was also agreed upon at the request of the most vulnerable countries to compensate for damage and losses caused by the consequences of climate change. To ensure that it does not remain merely a symbol of solidarity and acceptance of responsibility, the fund must be well designed. The US$ 170 million pledged by Germany at COP27 is to come from the Federal Ministry for Economic Cooperation and Development budget (FMfECaD, 2022). To ensure that the funds for other development projects do not shrink as a result, the BMZ budget should be increased accordingly next year," the researchers said. It remains to be seen whether the coalition government will actually implement these promises.
Climate-related international commitments have been discussed by industrialised countries since 1972. To this end, a "polluter pays principle" was adopted in 1992. Under this principle, the costs of pollution are borne by the polluters.
However, the damages and losses have rarely been discussed at the international level. The influence of climate change on concrete damage events is difficult to quantify, which makes it even more difficult for countries to reach an agreement.
Another problematic factor is the exact use of these funds. Furthermore, the determination of historical responsibility and the efficiency of the payments is a constant topic of discussion. As with the climate protection commitments, however, the exact design is anything but simple.
The researchers conclude: "Furthermore, due to the commitment to economically less strong and vulnerable countries, their demands should be given due attention. These countries demand that the financing of climate change adaptation measures be prioritised. German self-interest should not be at the forefront of the allocation process. In the coalition agreement, the new German government has stated that the ODA quota of 0.7 % should be adhered to and additional funds should be made available for climate financing. It still remains to be seen whether the current government coalition will actually implement this."
