Friends of the Earth believes that with the climate crisis upon us, the world cannot afford for developing countries to go down the dirty development road that already-industrialized-countries took over the last few centuries, which has landed us in the throes of global warming.

We seek to facilitate the transfer of funds from industrialized countries, like the United States, to developing countries to help enable those countries to adapt to the unavoidable impacts of climate change, reduce greenhouse gas emissions, and grow a green energy economy. 

A matter of fairness: the polluters pay principle

Climate finance is further grounded in the concept of the developed countries' historical responsibility for causing the climate crisis. It is also a legal obligation under the United Nations Framework Convention on Climate Change.

In keeping with the principle that polluters are responsible for cleaning up the mess they cause, developed countries responsible for the climate crisis -- top among them the United States -- must use public funds to provide climate finance.

A promising source of revenue for this is a financial transaction tax. Hundreds of billions of dollars could be raised per year by placing a tiny tax on harmful speculation in the financial sector. Friends of the Earth believes that climate finance must not be subject to the whims of markets and investors. Adaptation in particular is not an area that is likely to turn a profit for the private sector, and truly renewable energy is often at a market disadvantage.

The cost of inaction is greater

Hundreds of billions of dollars are needed every year, and more if rich countries don’t start to take their obligations seriously. For example, the United Nations Department of Economic and Social Affairs’ 2009 UN World Economic and Social Survey estimated that $500-$600 billion annually is needed for adaptation and mitigation in developing countries. Though estimates vary, the bottom line is the less we do now, the more it will cost later. 

A new Green Climate Fund was recently established by the UNFCCC as the main international channel through which these funds should flow. The Fund is now in the process of being designed. Not only is Friends of the Earth campaigning to make sure that the U.S. contributes its fair share of climate finance, we are also working hard to ensure that the Green Climate Fund is as equitable, climate friendly, and effective as possible in meeting the needs of peoples in developing countries.