“Where is the money?” No clarity on climate finance as COP29 talks enter final day

Latest update:November 22, 2024 01:58 IST

The two-week conference ends on Friday, but developed countries have yet to reveal how much they are willing to contribute to replace the $100 billion target.

The latest UNFCCC Standing Committee on Finance (SCF) estimates that developing countries will need at least US$5–6.8 trillion cumulatively until 2030 to achieve their Nationally Determined Contributions (NDC), while adaptation financing needs are being assessed at US$215–387 billion. per year until 2030. Image/UN Climate Change Conference

Only a few hours left until UN Climate Summit As Baku concludes, there is still no clarity regarding the amount of financing that will be part of the final deal. The latest draft text released on Thursday only mentions an amount of “X trillion dollars” annually between 2025 and 2035, leaving developing countries out.

The lengthy text of the New Collective Quantitative Goal (NCQG) has been reduced to 10 pages from the 25 it presented last week. However, it did not provide important details about how much climate finance developed countries are willing to contribute to replace the previous $100 billion target.

‘X Dollars’ Cause Outrage Among Developing Countries

“The draft text does not provide a numerical figure for the proposed mobilization target or for the enablement element, despite the joint position of the G77 and China on the annual mobilization target of US$1.3 trillion,” said Kenya’s climate envoy Ambassador Ali Mohamed on behalf of Africa group expressing their disappointment.

According to the latest UNFCCC Standing Committee on Finance (SCF) report, developing countries will need at least US$5–6.8 trillion cumulatively until 2030 to achieve their Nationally Determined Contributions (NDC), while adaptation financing needs are being assessed at 215–387 US dollars. billion per year until 2030.

Bangladesh delegate Syeda Rizwana Hassan, an adviser to the environment ministry, said the draft text focused on minimum and grant-based allocations for damages and loss, but lacked clear financial commitments. “It is important that financial allocations are clearly stated, without references such as ‘X dollars,’” she said.

A key requirement from developing countries is that climate finance be provided primarily in the form of public finance, in the form of grants and concessional financing, without increasing any debt burden.

Reiterating India’s position on the issue, Environment Minister Leena Nandan said the target should be US$1.3 trillion, of which US$600 billion should be raised through grants and grant-equivalent resources. “NCQG is not an investment objective. Expanding the depositor base, focusing on attracting the private sector to increase investment are all contrary to the mandate of the goal,” she added.

No consensus in sight

In the evening, a group of 80 developing countries most vulnerable to climate change, including the African group and Latin America and the Caribbean, called on developed countries to show greater “political will”.

In its proposal to resolve the debate, the coalition proposed “innovative strategies” to close the fiscal gap, including fiscal measures from developed countries such as redirecting fossil fuel subsidies to attract new government resources and reorienting current existing government spending to meet the $1 trillion need USA. “We ask that we work together with developed countries to prepare a roadmap to make this possible,” the statement said.

The two-week conference entered its final day, but developed countries refused to reveal the financial figure they were willing to negotiate. Speaking in plenary, an EU official said: “The EU will continue to lead and do more, but the sheer size (of the finances) is such that it can only be delivered if all parties with the capacity to do so actually come on board.” . Everyone who can should contribute.”

Another draft coming soon

From being labeled the “weakest mitigation text yet” to text that fails to reflect the urgency of the climate change disaster, the draft text has received backlash from developing countries that most need a strong deal at COP29.

Climate policy experts said the draft text presented two different packages of financial agreement, reflecting the perspectives of developing and developed countries that are at different poles. “We need to see a bridging proposal that will unite countries, because time is short. Developing countries are concerned about the lack of numbers in the texts, and developed countries should take this into account,” said David Waskow, director of the WRI International Climate Initiative.