Responsibility, capacity, greenness or vulnerability? What explains the levels of climate aid provided by bilateral donors?

Abstract

At the 2009 Copenhagen Climate Summit, donors pledged to ‘jointly mobilize’ $100 billion/year for climate finance by 2020. The Copenhagen Accord and other agreements do not specify who should provide how much of this collective target beyond the general principle of common but differentiated responsibilities and respective capabilities (CBDR&RC), according to which the more responsible a country is for climate change and/or the more capable of paying, the more climate finance it should provide. Two additional burden-sharing mechanisms may explain how much climate finance donors provide: willingness to pay or ‘greenness’ and self-interest. These mechanisms are tested to determine which best explains current patterns in climate finance commitments by analysing bilateral climate aid. There is evidence for capability—richer countries provide more climate aid. In contrast, responsibility, greenness or self-interest do not induce more climate aid commitments. Better understanding the drivers of climate aid helps to mobilize more climate finance, and advances understanding of (sectoral) aid allocation.

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