Insights from Copenhagen: Hillary Clinton Pledges to Raise $100 Billion for Developing Nations

Secretary of State Hillary Clinton came to Copenhagen today and announced that the U.S. will help raise $100 billion annually through 2020 to help developing countries reduce their greenhouse gas emissions.  Long term finance assistance remains one of the key sticking points between the developed and developing countries.

The money would come from public and private funds mobilized by the United States and other unspecified nations.  But, it will only happen if major emerging developing countries agree to binding emission targets that can be verified internationally.  In effect, the U.S. is tying this carrot of financial assistance to another sticking point in the negotiations—countries like China and India agree to binding agreements that can be independently verified. Clinton stated in very clear terms that “if there is not even a commitment to pursue transparency, it’s a deal breaker for us.” 

The proposed fund is on the low end of what the European Union and others say is needed Clinton also stressed that the aid would go only to the poorest countries.  It remains unclear what portion would come from the United States, and Clinton did not specify how much immediate money would be available from America.

Immediate reaction from environmental activists was positive and said the announcement now puts the onus on China to compromise.