Climate Fight Goes On: Nations Seek Alternatives to US, UK Funding

The globe is being pushed to imagine a reality where US and UK are not major players in the war on climate change, and that has led leading climate leaders to warn of a global catastrophe. The move follows abrupt reductions in funds by US and UK, who have pulled out of various worldwide green transition projects.

The US President Trump recently withdrew from a South African coal transition deal, an effort that reduces America's financial contribution by $1 billion. The US also withdrew from commitments amounting to $4 billion to the Green Climate Fund, the largest of its kind in the world. The withdrawal puts at risk future US contributions to such programs in Indonesia and Vietnam.

UK climate envoy Rachel Kyte addressed the topic, pointing out that the world needs to prepare for a future where the US is no longer involved in funding the green transition. As the US has rolled back its climate commitments and canceled a number of flagship aid and development-finance initiatives, Kyte stated that global leaders would continue with climate action even without the US.

Kyte mentioned that scientific opinion regarding climate change is unchanged even if the US policy is revised. Actually, investment patterns across the globe continue to be centered around environmental, social, and governance (ESG) concerns. This implies that the world would continue to fight the war against climate change with or without US participation, the UK taking a lead together with other countries on climate research and green policies.

As nations rush to identify alternative sources of finance for climate change activities, the scenario has brought into focus the growing need for private finance and multilateral development bank reforms. These money institutions can play a key role in funding global climate initiatives in the wake of the collapse of the anticipated financing support from the US and UK. Finally, the international community has to comply with the new era of climate change finance, with or without the participation of established contributors such as the US and UK. The pledge to halt climate change still lingers, but alternative sources of funding and alternative leadership shall have to be accepted in order to achieve it.