Policy Updates

On December 4, 2023, Norway announced that it will commit NOK100 million (US$9 million) to the LDC Fund to strengthen the capacity of LDCs to meet climate challenges.

The Norwegian Ministry of Foreign Affairs stated that the four focus areas of the fund's strategy align well with the five pillars of the Norwegian climate adaptation strategy. Norwegian Minister for International Development Anne Beathe Tvinnereim emphasized the importance of early warning systems, climate services, nature-based solutions, and climate-resilient food production and infrastructure.

On December 3, 2023, during the opening days of COP28, USAID announced a number of additional investments in a range of agricultural-climate investments to promote food security through the US' flagship program Feed the Future.

The largest announcement was an additional US$100 million for CGIAR through 2026 to support innovations in climate-smart agricultural efforts. The pledge brought total US commitments to CGIAR to US$215 million.

USAID stated that it will prioritize efforts to address climate-related agricultural issues, including innovations for smallholder farmers, a focus on climate-resilient crops, improving irrigation and water management systems, addressing gender inequalities, and reducing food waste and emissions.

On December 3, 4, and 5, 2023, the UK government made an array of financing announcements at COP28, including GBP100 million (US$119 million) to climate adaptation in vulnerable countries and GBP480 million (US$575 million) in investments to leverage private sector funding for adaptation and resilience.

The UK’s GBP100 million (US$119 million) announcement to climate-vulnerable countries included:

• Approximately GBP20 million (US$24 million) in funding for disaster risk financing and early warning systems;
• GBP36 million (US$43 million) for clean energy and green growth projects in the Middle East and North Africa to support long-term climate stability;
• Up to GBP18 million (US$22 million) for an innovative new program to adapt and strengthen health systems, which would be the first climate and health program to be announced by a G7 member; and
• GBP20 million (US$24 million) for a new research program to guide the UK’s future work on climate-resilient health systems.

The GBP480 million (US$575 million) investments to green private financing included:

• GBP391 million (US$468 million) to the Private Infrastructure Development Group to build a pipeline of low-carbon, climate-resilient infrastructure projects for private sector investment;
• GBP44 million (US$53 million) from BII for new projects involving clean energy transition and climate resilience in Africa and South Asia; and
• A potential GBP32 million (US$38 million) investment via MOBILIST in the Green Guarantee Company, which offers specialist guarantees for climate adaptation and mitigation projects in LICs.

The UK also announced its first African Climate Resilient Debt Clause for Senegal, allowing Senegal to pause debt repayments in the wake of a climate disaster to promote speedy recovery.

The UK further endorsed the new Global Climate Finance Framework at COP28, calling for reform of international financial institutions to ensure improved equity, efficacy, and greater resources.

Finally, the UK confirmed the launch of Climate Investment Funds Capital Market Mechanism in 2024. The mechanism was originally announced in 2021 under the UK’s COP26 Presidency. The launch of the mechanism comes after in-depth work on its specific financing mechanism design. The bonds are hoped to generate up to US$750 million per year in new climate finance and US$7.5 billion over the next decade.

On December 2, 2023, at COP28, Italy signed a Memorandum of Understanding underlining future climate cooperation between Italy and Ethiopia, which committed approximately EUR7 million (US$8 million) from Italy's Ministry of Environment and Energy Security to projects for CO₂ reduction and climate adaptation.

The signing occurred during a meeting between Italian Minister of Environment and Energy Security Gilberto Pichetto-Fratin and Ethiopian Minister of Planning and Development Fitsum Assefa.

On December 2, 2023, Norwegian Prime Minister Jonas Gahr Støre committed an additional NOK270 million (US$25 million) to the new fund for loss and damage associated with climate change during the opening days pf COP28.

The fund was established in 2022 during at COP27.

Norwegian Minister of International Development Anne Beathe Tvinnereim pointed out that the fund will be a supplement to existing initiatives. She emphasized that no single fund will be able to address the challenges of climate change on its own.

On December 2, 2023, during the opening days of COP28, outgoing Dutch Prime Minister Rutte announced a commitment of EUR15 million (US$16 million) to help establish the Loss and Damage Fund.

The EUI pledged US$125 million, Germany and the UAE each pledged US$100 million, the UK pledged GBP60 million (US$78 million), the US pledged US$18 million, and Japan pledged US$10 million. The total funds surpass the US$400 million needed to initiate the establishment and operation of the Loss and Damage Fund.

Dutch NGO ActionAid Netherlands responded by commenting that while the pledge is a fair initial contribution to the fund, it is far from a "fair share" for the Netherlands when based on the country’s emissions levels.

On December 2, 2023, the EU institutions, the EIB, the EBRD, and the Member States that comprise Team Europe pledged EUR20 billion (US$21.8 billion) for clean energy partnerships with African partners.

The funding announcement listeed EUR3.4 billion (US$3.7 billion) in grants and covered the period from 2021-2027. The project, AEGEI, aims to produce over 50 Gigawatts of renewable energy by 2030.

12 EU Member States contributed to the funding. No language regarding specific partner countries was included in the announcement.

On December 1, 2023, Italian Prime Minister Giorgia Meloni attended the Global Stocktake high-level panel on adaptation at COP28 and announced that Italy will contribute EUR100 million (US$109 million) to the Loss and Damage Fund benefitting nations most vulnerable to climate change, a figure that surpassed the pledges of both Germany and the UAE and equalled that of France.

Meloni stated she will work to double adaptation finance by 2025, as committed at COP26 in 2021. She emphasized the essential role of MDBs in climate finance and highlighted the need for reform, stressing that the G7 will play a key role.

Meloni also attended the high-level segment for Heads of State and Government. She announced that Italy would continue to support the GCF in the next cycle and confirmed previous commitments totaling EUR300 million (US$328 million).

On December 1, 2023, during the opening days of COP28, Canadian Minister of Environment and Climate Change Steven Guilbeault announced a CAD16 million (US$12 million) contribution to help establish the Loss and Damage Fund for countries most affected by climate change.

This commitment makes Canada one of the first contributors to the fund, which has surpassed the US$400 million needed to initiate its establishment and operation.

On December 1, 2023, the Dutch Ministry of Foreign Affairs announced a commitment of EUR150 million (US$164 million) to IFAD’s 13^th replenishment.

The funds are meant to help IFAD double its impact on smallholder productivity, income, and resilience.

Dutch Minister for Foreign Trade and Development Cooperation Liesje Schreinemacher stressed that the threat that climate change poses to global food production and emphasized that small-scale farmers need international investment to effectively adapt to the impacts of climate change.