News release

From: Motu Economic and Public Policy Research Trust

Appealing to altruism alone won’t spark climate cooperation. New research examines what might work instead.

Wealthy countries aren’t doing nearly enough to fund climate mitigation in the developing world – and a big part of the problem is how the conversation is being framed.

“Helping fund mitigation in emerging and developing economies (EMDEs) isn’t just the right thing to do for the climate, sustainable development, and equity — it’s in wealthy countries’ own strategic interest,” says Catherine Leining, Motu Policy Fellow and member of the RESET Network.

A new Motu Working Paper, released today, presents insights from research and expert dialogue on how to build public support in advanced economies for funding climate mitigation abroad — by shifting narratives. The project was conducted by Motu Research, the European University Institute, and the University of Zürich with funding from the Environmental Defense Fund and the RESET Network. It considered both conventional climate finance and carbon market approaches under the Paris Agreement.

“Our work suggests that in advanced economies, appealing to altruism alone is unlikely to overcome public resistance to sending climate funding to other countries,” says Catherine Leining, a co-author of the paper. “The public needs to be convinced why funding ambitious climate action both at home and abroad is a good use of taxpayer money.”

The paper identifies a cluster of concrete national-interest arguments that could help build public support in advanced economies for funding international climate cooperation:
* The shared climate reality — every country is a climate taker, making global mitigation an act of national as well as collective self-preservation.
* New trade and market opportunities — advanced economies stand to gain from strengthening trade relationships and exporting low-emissions goods and services.
* Global and regional stability — climate and economic instability abroad creates security and migration pressures at home.
* Geopolitical relationships and processes — climate cooperation builds strategic alliances that matter in an uncertain world.
* Climate target risks — participating in the Paris Agreement’s carbon market approaches can help manage the risks and costs of achieving Nationally Determined Contributions (NDCs) while accelerating global mitigation and sustainable development.

“As shown in the current energy crisis, renewable energy investment underpins climate security, energy security, and geopolitical security. Fossil-fuel price shocks are being felt most severely by EMDEs highly dependent on fossil fuels. These countries often lack the funds to invest in energy transition and support vulnerable  communities and businesses. Advanced economies funding climate mitigation in EMDEs achieve further vital outcomes beyond meeting their own country’s climate commitments,” says Catherine Leining.

Boosting mitigation funding from advanced economies to the developing world is critical to global progress. Countries in the Global South hold 75% of the world's lowest-cost opportunities to cut greenhouse gas emissions by 2030 in line with 1.5°C pathways. However, Global South countries (excluding China) receive less than 20% of global clean energy investment. Under current policies, global temperatures are on track for 2.8°C of warming by 2100.

“The simple reality is if advanced economies focus only on achieving their own Paris Agreement targets, the global temperature goal of the Paris Agreement will remain out of reach,” says Catherine Leining.

The project’s findings shed light on current narratives and opportunities to shift those narratives in favour of climate cooperation between countries. A critical step for shifting narratives is building public confidence in mechanisms for funding mitigation abroad.

“Narratives built on incomplete or outdated information can be improved. And narratives that reveal real policy deficiencies can create pressure for transformational change. The stories we tell about international climate cooperation today will shape what’s politically possible for decades to come,” says Catherine Leining.