Two major concerns for what seemed like everybody at this year’s COP were what the US would be willing to pledge towards the new climate finance goal and what the US could reasonably promise with regard to climate action given the upcoming change in presidential administration. While negotiations continued during the second week, US President Joe Biden made an announcement from Manaus, Brazil which seemed timed to answer both of those questions.
Standing in front of a tropical forest and wearing a fishing shirt and sunglasses, President Biden outlined a number of US recent climate initiatives.
- $50 Million for the Amazon Fund
- Brazil Restoration and Bioeconomy Finance Coalition, which intends to mobilize at least $10B in public and private investment by 2030 to restore and protect 20K square miles of land
- Announcing $50M to the Amazon Fund (to the original $50 already given)
- Supporting President Lula’s Tropical Forest Forever Fund
The president also spoke about US climate finance commitments made for other parts of the world.
- Supports bipartisan work to create new Foundation for International Conservation – leverage public funds to mobilize billions more dollars in private capital
- Kept promise to deliver $11B per year in climate finance by 2024, making the US the largest bilateral provider of climate finance in the world
These initiatives reflect the preference for public-private partnerships favored by the Administration in other US climate-related legislation, like the Inflation Reduction Act. One strategic benefit of structuring funding in this way is that the private investments spurred by public seed money can last beyond any one presidential administration. So projects begun with the help of Inflation Reduction Act funds, and many of these projects are extremely popular, even with lawmakers who voted against the IRA, will continue delivering clean energy and jobs benefits even after Biden leaves office.
This announcement takes the same approach with international finance, using public funds to mobilize private investment.
Concerns about the balance of grants, which provide funds for adaptation and mitigation projects outright, versus loans, which lock developing countries into making payments to developed countries, further delaying climate action, were a major element of the discussion of climate finance that took place at COP. A quick Google search of some of the initiatives President Biden mentioned reveals a balance of funds offered as loans and as grants.
In President Biden’s speech he spoke to the intangible value of the Amazon saying “It’s often said that the Amazon is the lungs of the world, but in my view, our forests and natural wonders are the heart and soul of the world. They unite us. They inspire us. They make us proud of our country and our heritage. A bridge to the past and to the future.“
“The Amazon rainforest has developed over 50 million years,” the president said. If we destroy it, it will never come back. The rainforest is of incalculable value to the indigenous peoples who have called it home for generations. And its protection is essential to the long-term stability of the climate. Supporting efforts to end deforestation in the Amazon is a great example of a creative, climate-focused initiative with numerous co-benefits.