France ups climate finance pledge to €5bn

Jessica Shankleman
clock

Francois Hollande calls on other countries to help meet UN's $100bn climate funding goal ahead of critical talks in Paris at the end of this year

France has become the latest country to pledge billions of dollars of funding to help some of the world's poorest countries cope with the worst impacts of climate change.

The host of this year's Paris climate change talks will increase its climate finance commitment from €3bn to €5bn (US$5.6bn) a year by 2020, said President Francois Hollande at the UN General Assembly in New York yesterday.

He said the new money would be offered as grants rather than loans to poor and vulnerable countries.

"We have to make sure that emerging economies, developing countries can be sure they will be helped," Hollande said.

He also called on other countries to set out their funding plans ahead of the Paris climate talks, when the UN is hoping to deliver on a previously agreed target to mobilise $100bn of climate finance a year from 2020.

"Between now and Paris in two months' time, we will have to continue mobilising finance through the World Bank, development banks, private banks and states to make sure we do reach that level," said Hollande.

France's pledge comes after the UK on Sunday announced it would increase its climate funding to £5.8bn between 2016 and 2021, which represents a doubling on the pledge from the past five years.

China last week also promised $3.1bn through a new South-South climate co-operation fund, fuelling hopes that the Paris Summit may yet deliver a breakthrough on the contentious topic of climate funding.

This article is part of BusinessGreen's Road to Paris hub, hosted in association with PwC

More on Policy

'Not a moment to waste': Government pulls forward clean power auction, as energy crisis escalates

'Not a moment to waste': Government pulls forward clean power auction, as energy crisis escalates

Ed Miliband confirms next renewables auction will be pulled forward to July and new plug-in solar technologies will be given green light, as oil and gas prices continue to climb

James Murray
clock 16 March 2026 • 8 min read
Is the UK's first forever chemicals strategy 'commendably holistic' or lacking in ambition?

Is the UK's first forever chemicals strategy 'commendably holistic' or lacking in ambition?

EXPLAINER: Green groups criticised the UK's first PFAS Plan for lacking ambition, but it potentially signals a 'big shift' in long-term policy direction - BusinessGreen unpacks what happens next

Stuart Stone
clock 12 March 2026 • 11 min read
Water firms given green light to raise further £463m from customer bills by 2030

Water firms given green light to raise further £463m from customer bills by 2030

Competition regulator gives permission for four water companies across England to increase household bills beyond levels approved by Ofwat, as part of efforts to fund major infrastructure upgrades

Michael Holder
clock 10 March 2026 • 5 min read