COP29: No headway on climate finance as developed nations sticks to $100 billion annual commitment
As global climate change talks in Baku, Azerbaijan, enter the final week, negotiations on climate finance have been stuck among differences over money to be made available to vulnerable countries.
- Nov 18, 2024,
- Updated Nov 18, 2024 1:43 PM IST
How many billions of dollars could clinch a deal at COP29? Money has turned out to be the stumbling block holding an agreement on climate finance at the global climate change talks in Baku, Azerbaijan.
As the negotiations get into the final week, the split is wide, with the developed nations sticking to the existing $100 billion annual finance commitment to climate-vulnerable countries. The developing countries want the commitment to raise at least $1.3 trillion annually as part of their financial obligation under the Paris Agreement.
The COP29 chair has to find a deal somewhere between $100 billion and $1.3 trillion. The United Nations Conference of Parties (COP 29) that is underway in Baku is seen as a finance COP because global leaders are supposed to agree on what is called the ‘New Collective Quantified Goal’ (NCQG) on climate finance.
The NCQG is set to replace the commitments made by developed countries in 2009 to support climate action in developing countries by providing them US $100 billion per year by 2020—a target that has been met only once in 2022.
“As we reach the midpoint of COP29, it is deeply disturbing to witness the climate finance negotiations come to a standstill. Developed nations continue to display a disturbing level of apathy, viewing vital climate finance as mere investments rather than the lifeline that developing countries urgently need,” says Harjeet Singh, Climate Activist and Global Engagement Director for the Fossil Fuel Non-Proliferation Treaty Initiative.
As the impasse continues, all eyes are on the G20 Summit in Brazil that started on November 18 with expectations of a breakthrough by leadership. The G20 meeting ends on November 19, and there is hope that climate finance talks could happen during the talks, while it is not part of the agenda.
After the first week of negotiations, four draft negotiating texts have emerged listing out the stands of all member countries. A 34-page text initially came out and was reduced to 25 pages, but the challenge is to bring it down to under 10 pages by erasing differences among the parties.
From the second week onwards, the discussions will shift from delegation to ministerial level to conclude. Minister of State for Environment, Forestry, and Climate Change Kirti Vardhan Singh is leading the 19-member Indian delegation.
On deadlock over climate finance, Ana Toni, Brazil’s national secretary for climate change, said: “I think a signal should come out from the G20 leaders’ summit. This signalling is very important.”
Developing nations have raised concern about the form of climate finance provided to developing and vulnerable countries, as it has come in the form of loans on high interest rates.
A position paper on climate finance released by CSE last month shows that developed countries have abstained from any engagement on the quantum or amount of finance to be provided under the goal. Additionally, they are also pushing for an expansion of the contributor base and the inclusion of private finance.
In contrast, developing countries have emphasised that international public finance must be the core component of the NCQG and that historical responsibilities must be adhered to when deciding the contributor base.
“Their reluctance to commit to the scale of the new climate finance goal and ensure it is provided in the form of grants rather than loans and investments not only undermines the success of this conference but also casts a shadow over the integrity of these wealthy nations. Their chronic failures underscore a preference for promoting their economic interests at the expense of providing real support to those enduring the most severe effects of climate change,” added Singh, who is attending the COP29.
How many billions of dollars could clinch a deal at COP29? Money has turned out to be the stumbling block holding an agreement on climate finance at the global climate change talks in Baku, Azerbaijan.
As the negotiations get into the final week, the split is wide, with the developed nations sticking to the existing $100 billion annual finance commitment to climate-vulnerable countries. The developing countries want the commitment to raise at least $1.3 trillion annually as part of their financial obligation under the Paris Agreement.
The COP29 chair has to find a deal somewhere between $100 billion and $1.3 trillion. The United Nations Conference of Parties (COP 29) that is underway in Baku is seen as a finance COP because global leaders are supposed to agree on what is called the ‘New Collective Quantified Goal’ (NCQG) on climate finance.
The NCQG is set to replace the commitments made by developed countries in 2009 to support climate action in developing countries by providing them US $100 billion per year by 2020—a target that has been met only once in 2022.
“As we reach the midpoint of COP29, it is deeply disturbing to witness the climate finance negotiations come to a standstill. Developed nations continue to display a disturbing level of apathy, viewing vital climate finance as mere investments rather than the lifeline that developing countries urgently need,” says Harjeet Singh, Climate Activist and Global Engagement Director for the Fossil Fuel Non-Proliferation Treaty Initiative.
As the impasse continues, all eyes are on the G20 Summit in Brazil that started on November 18 with expectations of a breakthrough by leadership. The G20 meeting ends on November 19, and there is hope that climate finance talks could happen during the talks, while it is not part of the agenda.
After the first week of negotiations, four draft negotiating texts have emerged listing out the stands of all member countries. A 34-page text initially came out and was reduced to 25 pages, but the challenge is to bring it down to under 10 pages by erasing differences among the parties.
From the second week onwards, the discussions will shift from delegation to ministerial level to conclude. Minister of State for Environment, Forestry, and Climate Change Kirti Vardhan Singh is leading the 19-member Indian delegation.
On deadlock over climate finance, Ana Toni, Brazil’s national secretary for climate change, said: “I think a signal should come out from the G20 leaders’ summit. This signalling is very important.”
Developing nations have raised concern about the form of climate finance provided to developing and vulnerable countries, as it has come in the form of loans on high interest rates.
A position paper on climate finance released by CSE last month shows that developed countries have abstained from any engagement on the quantum or amount of finance to be provided under the goal. Additionally, they are also pushing for an expansion of the contributor base and the inclusion of private finance.
In contrast, developing countries have emphasised that international public finance must be the core component of the NCQG and that historical responsibilities must be adhered to when deciding the contributor base.
“Their reluctance to commit to the scale of the new climate finance goal and ensure it is provided in the form of grants rather than loans and investments not only undermines the success of this conference but also casts a shadow over the integrity of these wealthy nations. Their chronic failures underscore a preference for promoting their economic interests at the expense of providing real support to those enduring the most severe effects of climate change,” added Singh, who is attending the COP29.