The US President Joe Biden recently announced the country’s new Finance Plan at the Leader’s Summit on Climate.
The Summit was hosted by the USA.
Keypoints about the Plan:
- United States will target reducing emissions by 50-52 percent by 2030 compared to 2005 levels.
- The US will double its climate funding by 2024. It is to triple its climate funding eventually.
- The United States Agency for International Development (USAID) is to release a new Climate Change Strategy in November 2021 at the COP26.
- The United States International Development Finance Corporation is to change its development strategy to include climate in its plan.
- It will prioritize climate mitigation and adaption.
- This is the first time the US is including climate in its development strategy.
- The Millennium Change Corporation will focus on climate smart development and sustainable infrastructure.
- It aims to direct more than 50% of its funding towards climate-related investments.
- The US Treasury will direct the executive directors in multilateral development banks such as World Bank to ensure that they set ambitious climate finance targets.
- The plan will also focus on ending international investments in carbon-intensive fossil fuel-based energy products.
The United States is the world’s second leading emitter after China. The country will have to contribute 800 billion USD as its share in the international climate finance.
About Millennium Change Corporation:
- It is a bilateral foreign US aid agency that was established in 2004.
- It provides financial aid to the countries with good economic growth through good policies.
About US International Development Finance Corporation:
- The US International Development Finance Corporation is responsible for providing finances to private development projects in low-income and middle-income countries.
- It was formed in 2019.