Yesterday international leaders pledged $9.3 billion towards the United Nations (UN) Green Climate Fund (Fund) at the first Pledging Conference in Berlin, Germany. Formally established in Cancun in 2010, the Fund aims to help developing countries mitigate and adapt to climate change. In this way, the capital would help those countries least to blame for, but most at risk from, climate change. The Fund would provide grants, loans and private capital for renewable energy and green technologies.  It is a step toward the far more ambitious goal announced in Copenhagen in 2009 for industrialized nations to mobilize $100 billion a year by 2020 for broader climate finance.

The initial capitalization of the Green Climate Fund is critical to the intergovernmental negotiations. The pledges act as an economic and political catalyst, spurring international climate action. “The [Fund] is the epicenter that determines the direction of both public and private investment over the next decades,” said Christiana Figueres, Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC). Resources allocated to the Fund unlock financial flows from the private sector. Private investments are viewed as essential to the transition to a low-emission, climate resilient economy. These investments are stimulated through application of concessional public financing from the Fund.

Politically, the pledges build trust between developed and developing countries. “The result of today’s capitalization of the [Fund] is foremost an unmistaken sign of trust building,” said Hela Cheikhrouhou, Executive Director of the Fund. “This creates a positive atmosphere for the start of successful negotiations in Lima in less than two weeks,” stated H.E. Mr. Manuel Pulgar-Vidal, Minister of the Environment of Peru.

Twenty-one nations made pledges, including contributions from four developing countries. Their combined contributions are the “largest amount the international community has ever mobilized for a dedicated climate finance mechanism,” said the Fund executive members.  Earlier this week at the G20 Summit in Australia, the 20 biggest economies in the world emphasized their commitment to “strong and effective action to address climate change.” The United States pledged $3 billion and Japan $1.5 billion to the Fund.Canada’s Prime Minister, Stephen Harper, broke from his usual ally on climate issues, Australian Prime Minister Tony Abbott, when announcing Canada’s commitment the Fund.

At the Pledging Conference, Germany and France each promised $1 billion, Britain pledged more than $1.1 billion and Sweden contributed over $500 million. Other countries that made pledges include the Czech Republic, Denmark, Finland, Italy, Luxemburg, Mexico, the Netherlands, New Zealand, Norway, South Korea and Switzerland. UN Secretariat Ban Ki-moon said the pledges “demonstrate that governments increasingly understand both the benefits derived from climate action and the growing risks of delay.”

Nevertheless, some wonder if momentum is building towards meaningful climate action. Critics point out that the international community failed to meet the UN goal of $10 billion. Oxfam called the $9.3 billion “a bare minimum” compared to the $10-15 billion it and developing countries call for. Oxfam further pointed out that Australia, Austria, Belgium, Canada and Ireland have not yet made any pledges. “Financial support from developed countries should be a building block for a global climate agreement, not a stumbling block,” said the group’s Alison Woodhead. Marlene Moses of Nauru, chair of the Alliance of Small Island States (AOSIS), called the pledges “still well short” of the target. “If it’s a struggle to get $10 billion once-off, how difficult is it going to be to get to $100 billion every year?” said Yvo De Boer, who oversaw the UN global warming talks from 2006 to 2010. “Much more has to be done if the promise made to developing countries to provide financial support of $100 billion per year in 2020 to tackle climate change,” Stephen Krug, a policy analyst at Greenpeace in Germany said. “While climate change is developing faster than expected, the financial support for those who are the most affected still evolves at a snail’s pace.”

Climate experts have warned that time is running out in the battle against climate change. Are world leaders committed to meaningful climate action? Does $9.3 billion reflect the pressing need to combat what is proclaimed the “most defining issue of our time?” Only time will tell.