Last week, representatives of 40 nations gathered in Paris to discuss a new global financing pact and agreed on a pledge of $100 billion in climate finance.
The pledge is said to be long overdue and is aimed at supporting developing nations in their efforts to mitigate the consequences of the climate crisis.
On Friday, world leaders concluded that wealthier countries will need to commit more cash into low-income economies as development banks, such as the World Bank, take on more risk in order to gather $200 billion in extra firepower.
However, not everyone attending the two-day summit was on board with the World Bank’s competence in dealing with what is largely seen as some of the most pressing issues at hand.
According to the final summit document, private finance will have to match each dollar of lending by development banks by at least one dollar.
Another key measure designed to help tackle the climate crisis that was also agreed on during the summit in Paris is the proposal of introducing a levy on shipping industry emissions.
The proposal was backed by more than 20 of the participating countries and comes just ahead of the International Maritime Organization (IMO) meeting in July.
Shipping contributes about 2.9% of total greenhouse gas (GHG) emissions and is considered to be among the hardest-to-abate sectors.
Even so, the shipping industry has been spared the burden of taxation due to high seas being outside of the jurisdiction of any one country.
And while shipbuilders and engineering companies around the world are already becoming increasingly active in developing carbon capture solutions for ships, many believe that introducing a tax on CO2 emissions would help spur this tendency and encourage the adoption of green practices faster.
Furthermore, if the IMO were to indeed introduce such a tax, the funds raised could go towards supporting poorer economies and helping them deal with the climate crisis.