US signals it will push for widening pool of climate finance contributors

“This is not 1992 in terms of the economic structure of the world,” US climate envoy John Podesta said on Monday, arguing that many countries, particularly China, should now be considered capable donors for the New Collective Quantified Goal (NCQG).

Podesta’s comments, targeting the world’s largest emitter, could reignite long-standing tensions over who pays for climate action. “China represents 30% of global emissions, they have an obligation,” he said, adding that Beijing should submit a 1.5°C-aligned NDC.

NDC, or nationally determined contribution, refers to the climate crisis commitments the governments make on paper.

The US position challenges the traditional divide between developed and developing nations established by the UN Framework Convention on Climate Change. “We already see a number of parties providing climate finance including China and we think it’s time to take account of those contributions through multilateral banks,” Podesta said.

His remarks came even as he acknowledged the uncertainty hanging over America’s own climate commitments following Donald Trump’s election victory. “Last week’s outcome in US elections is obviously bitterly disappointing,” Podesta admitted, particularly given the “unprecedented resources and ambition” of the Biden administration’s climate agenda.

The Biden administration had pledged to reduce emissions by 50-52% below 2005 levels by 2030. However, Podesta conceded that “it is clear that the next administration will try to take a U-turn and reverse much of this progress.”

Despite this, he emphasised that climate action would continue at state and local levels. “While the administration under Donald Trump may put action on climate change on the backburner, the work to contain climate change will continue in US with commitment, passion and belief,” he said, noting that clean energy support has become increasingly bipartisan.