Macron's climate finance summit: start by not financing fossils

The document critiques the upcoming Summit for a New Global Financial Pact, arguing that current climate finance is woefully inadequate and often delivered as debt-increasing loans. It advocates for 'polluter pays' taxes on shipping, aviation, and fossil fuel companies, and calls for a 'climate version of the Hippocratic Oath' for private investors to stop financing fossil fuels in the Global South while attempting to fund the energy transition.

• Current climate finance levels are drastically lower than actual needs; while the 2009 Copenhagen COP promised US$100 billion annually by 2020, Oxfam estimates the real value of North-South flows in 2020 was at most USD24.5 billion. Total needs by 2030, including the Loss and Damage Fund, could reach $1.7 trillion, meaning 2020 finance may have been only 1.4% of the 2030 requirement.
• The document identifies several potential 'polluter pays' mechanisms to generate funds, including a global levy on shipping emissions, taxes on fossil fuel companies, taxes on flights, and taxes on financial transactions. Such taxes could potentially raise approximately $600 billion annually, while redirecting the estimated $423 billion spent on fossil fuel subsidies represents another funding source.
• Private finance for clean energy is heavily concentrated in China and developed economies, with less than 10% of growth since 2021 occurring elsewhere. In Africa, the cost of capital is significantly higher, with investors typically requiring double the rate of return for solar and wind projects compared to Europe.
• The author contends that it is contradictory to seek private investment for renewables in high-risk economies while banks and investors continue to finance fossil fuel expansion in those same countries, urging a commitment for private finance to 'first do no harm' by exiting fossil fuels.

APA

Martin, L. (2023). Macron's climate finance summit: start by not financing fossils. Reclaim Finance. https://reclaimfinance.org/site/en/2023/06/15/macrons-climate-finance-summit-start-by-not-financing-fossils/

Chicago

Martin, Léo. Macron's climate finance summit: start by not financing fossils. Reclaim Finance, 2023. https://reclaimfinance.org/site/en/2023/06/15/macrons-climate-finance-summit-start-by-not-financing-fossils/.

Wikipedia

{{cite press release |last1=Martin |first1=Léo |title=Macron's climate finance summit: start by not financing fossils |publisher=Reclaim Finance |date=15 June 2023 |url=https://reclaimfinance.org/site/en/2023/06/15/macrons-climate-finance-summit-start-by-not-financing-fossils/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{martin2023macrons, author = {Martin, Léo}, title = {{Macron's climate finance summit: start by not financing fossils}}, publisher = {Reclaim Finance}, year = {2023}, month = jun, url = {https://reclaimfinance.org/site/en/2023/06/15/macrons-climate-finance-summit-start-by-not-financing-fossils/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }