Climate funds used for coal, hotel, chocolate projects, says report

Italy, Belgium, Japan and the US have been accused of using global warming funds for supporting projects unrelated to climate change, per a Reuters special report.

These projects include chocolate and gelato stores in Asia, coastal expansion in Haiti, a film set in the Argentine rainforest, financing a coal plant in Bangladesh and airport expansion in Egypt.

But the four countries stood by their programs, asserting their validity.

Failed to contribute
Developed nations pledged $100 billion a year in annual funding to help developing countries reduce the effects of global warming. The goal hasn’t been met.

Around 35 governments reported more than $182 billion in total contributions (grants, loans, bonds, etc.) between 2015 and 2020. They fell $16.7 billion short of the $100 billion goal in 2020.

A group representing wealthy nations, Organization for Economic Co-operation and Development (OECD) estimates the goal will be missed again in 2021 and 2022 once the contributions are tallied.

Data collection
Reuters found that $3 billion were spent on projects unrelated to climate change. For example, Italy considered a $47 million equity investment in Venchi’s chocolate store expansion in Asia as climate finance.

Japan’s loans of $3.6 billion for coal projects in Vietnam and Indonesia lack justification for considering them as climate projects.

Additionally, Japan’s loan for the new terminal at Egypt’s Borg El Arab airport could increase flight emissions by 50%.

Five climate specialists confirmed that these projects have limited or no direct impact on mitigating climate change.