/ 11 November 2024

Climate finance set to be this year’s biggest COP talking point

Cop29 Unfccc Climate Conference In Baku
UNFCCC Executive Secretary Simon Stiell speaks during the opening ceremony of the UNFCCC COP29 Climate Conference on November 11, 2024 in Baku, Azerbaijan. The COP29, which is running from November 11 through 22, is bringing together stakeholders, including international heads of state and other leaders, scientists, environmentalists, indigenous peoples representatives, activists and others to discuss and agree on the implementation of global measures towards mitigating the effects of climate change. According to the United Nations, countries made no progress over the last year in reducing global emissions from the burning of fossil fuels. (Photo by Sean Gallup/Getty Images)

Climate change affects every single person in the world, making it crucial to get an agreement on a new global climate finance goal, said Simon Stiell, the executive secretary of the United Nations Framework Convention on Climate Change.

Stiell told the 29th United Nations climate change conference (COP29) in Baku, Azerbaijan, that “if at least two thirds of the world’s nations cannot afford to cut emissions quickly, then every nation pays a brutal price”.

Climate finance will be a key focus of COP29, where countries will hash out terms on the New Collective Quantified Goal (NCQG) or long-term climate finance.

South Africa and the African Group of Negotiators have set an ambitious target of $1.3 trillion a year that wealthy nations — who are also heavy polluters — must offer developing countries from next year. This replaces the previous commitment of $100 billion annually, which was only realised once in 2022.

Stiell said it was important to not think of climate finance as a charity.

“An ambitious new climate finance goal is entirely in the self-interest of every nation, including the largest and wealthiest. But it’s not enough to just agree on a goal. We must work harder to reform the global financial system. Giving countries the fiscal space they so desperately need,” he said.

Brazil, South Africa, India and China have asked the COP29 presidency to highlight the issue of unfair trade policies by developed economies in the name of climate action.

“Parties should collectively oppose any measures to restrict trade and investment and setting up new green trade barriers, such as unilateral carbon border adjustment measures and due diligence requirements, with the pretext of addressing climate change, which are incompatible with multilateral rules and the cornerstone principles of the UNFCCC (United Nations Framework Convention on Climate Change) and the Paris Agreement,” the statement read.

The African Group of Negotiators (AGN) says the continent’s needs must be a priority at this year’s conference.

“Adaptation and climate finance remain top AGN priorities heading into COP29 … The NCQG must respond to the evolving needs of developing countries, particularly in addressing the high cost of capital and debt sustainability issues we face,” AGN chair Mohammed Ali told a pre-COP event.

The UN Environment Programme (UNEP) Adaptation Gap Report 2024 — which is expected to shape discussions on adaptation finance at the conference — stated that African countries are not receiving the financial aid the continent needs.

“The enormous gap between adaptation finance needs and flows means that the world is failing to adapt to current impacts. Nations must, therefore, adopt an ambitious new collective quantified goal for climate finance at COP29 and pursue innovative approaches to mobilising additional financial resources, including creating the right enabling environment for public and private sector investment,” UNEP executive director Inger Andersen said in a statement.

The report also highlighted that the world is off track on reaching the goal of 1.5 degrees Celsius pre-industrial levels which will wreak havoc on the planet.

“We mustn’t let 1.5 slip out of reach. And even as temperatures rise, the implementation of our agreements must claw them back. Clean energy and infrastructure investment will reach two trillion dollars in 2024. Almost twice that of fossil fuels,” Stiell said.   

There must be a shift to clean energy and climate resilience and this will need to be accelerated at COP, he said, noting that at last year’s conference, a loss and damage fund had been agreed by negotiators, which must be built upon by financial and technical support.

This year’s conference will also get updates on the nationally determined contributions,  efforts by each country to reduce national emissions and adapt to the effects of climate change as signed by countries in the Paris Agreement, a legally binding treaty on climate change