While it is undeniable that climate change is real and it is causing major concern, the escalating costs of climate change have sparked a debate among governments over who should bear the financial burden. Instances of record-breaking heat in China, wildfires causing evacuations in Swiss villages, and droughts devastating Spanish crops have brought this issue to the forefront.

During recent climate talks between the U.S. and China, discussions centered on finding ways to collaborate on renewable energy and climate finance ahead of the upcoming U.N. climate summit, COP28, in Dubai. With China's rapid economic growth and increasing emissions, there is mounting pressure for them to join the group of countries that provide climate funding.

Climate finance involves wealthier nations contributing money to help poorer nations reduce CO2 emissions and adapt to the effects of climate change. However, some of the countries obligated to make these payments have not delivered the promised funds. The current list of financing nations was established in 1992, and some countries are now calling for China to contribute, along with other wealthy nations like Qatar, Singapore, and the United Arab Emirates.

While China has resisted such calls, proponents argue that an expansion of the donor list is necessary before a new, potentially larger U.N. target for climate finance is set after 2025. However, changing the official U.N. donor list requires international consensus, and there is resistance from countries like China and Saudi Arabia.

The question of historical responsibility is also an issue at COP28, as countries aim to create a new fund to compensate vulnerable states for the costs incurred from climate-induced natural disasters. The U.N. climate financing arrangement is based on the principle that developed countries have a greater responsibility to address climate change due to their historical CO2 emissions.

Countries are now grappling with the question of which nations will be responsible for contributing to this fund. While some countries, like South Korea and Qatar, have voluntarily contributed to UN climate funds, others have opted to channel aid through alternative channels, making it harder to track the flow of funds.

China, for instance, established the South-South Climate Cooperation fund to support least developed countries in tackling climate issues. However, the contributions are relatively small compared to the substantial investments China is making in projects like the Belt and Road Initiative.

Some vulnerable countries, frustrated with the lack of financial support to date, are exploring new sources of funding, such as revamping multilateral development banks to offer more support for climate projects or implementing a global CO2 levy on shipping. Ultimately, the debate over climate finance remains complex and challenging as countries seek to address the urgent and costly impacts of climate change.