By Jeff Kapembwa
The much touted COP 29 meeting closes its door in Baku, today, Friday, but the ‘Elephant in the room’-Climate finance guarantee for affected developing countries’, remains a far-fetched realisation.
What many climate campaigners had envisaged of the COP 29 to bring to fruition, the unfulfilled commitment to pacify over damages caused to the environment and humanity by emissions of GreenHouse Gases by developed nations-affecting forestry and raising temperatures acceptable degrees and assuring energy security and Net Zero, deliberations so far, gives no hope of a climate change breakthrough.
The Independent High-Level Expert Group on Climate Finance estimates that by 2030, developing countries (excluding China) will require $2.4 trillion (€2.3 trillion) annually for climate investment.
Global climate finance approached $1.3 trillion (€1.2 trillion) a year on average in 2021/2022 compared to $653 billion (€619 billion) in 2019/2020, according to the Climate Policy Initiative report.
Other commentators estimate a staggering US$1 trillion (€948 billion) is needed per year to pacify over the climate impasse. Some expert groups estimate climate finance needs to rise to $9 trillion (€8.5 trillion) by 2030.
Although the financing targets are bound to stagger with climate action by polluters, US, India, China, among others, there is a new ray of hope for some “take away” by affected countries with announcements that new financing goal may replace the annual $100 billion (€95 billion) target established in 2009, which was was barely met two years ago, though behind schedule.
To meet these huge monetary requirements, governments worldwide are exploring various options, including wealth taxes, levies on shipping and addressing debt, though the Elephant in the room remains unresolved.
Amid debate by world leaders and negotiators at the UN climate conference over how much should constitute a new climate finance target to meet the trillion-dollar costs of helping lower-income nations adapt to climate change, Britain has come forward and pledged pledges £239m to tackle deforestation and help rich nations tackle climate change.
The UK government, speaking at the COP 29 assured that the money when actualized would go towards tackling deforestation in countries such as Colombia and Indonesia.
This is, in recognition of “the critical role of forests in those countries as ‘carbon sinks’ that absorb more CO2 from the atmosphere annually than the UK and USA emit combined.
Britain’s pledged financing was minus Africa, which despite emitting a paltry 4 percent of GHGs, is least considered, though can breathe with a sigh of relief with the African Development Bank showing empathy.
After a high-level dialogue on the sidelines of the United Nations global climate conference currently underway in Baku, Azerbaijan on innovative climate finance solutions for Africa, African Development Bank’s Manager for Climate and Environment Finance, Gareth Phillips, outlined Africa’s significant financing gap.
“The African Economic Outlook projects a financing requirement of approximately $2.7 trillion by 2030 – equivalent to $400 billion annually — to effectively combat climate change,” Phillips stated. “Yet Africa received just $47 billion in 2022, accounting for only 3.6% of global climate finance.
While the Bank’s record $5.8 billion investment in climate adaptation and mitigation last year marks progress, it remains insufficient, with Philip stating: “We must dramatically accelerate our efforts to mobilize climate finance.”
Ms. Dalila Goncalves, Regional Director for Africa, UN Office for Project Services (UNOPS), emphasized the pivotal role of non-financial institutions, like UNOPS, in facilitating effective utilization of climate finance, especially in fragile and high-risk environments.
Global Head of Origination of the UK Export Finance, Vomic Nur Shah, stressed the importance of collective action and explained how sustainable economic growth in Africa can be accelerated by complementing the private market investments with insurances, loan guarantees and various other financial instruments and incentives.
However, the United Nations, key campaigners of climate action, is beaming with anger over the lack of commitment for sustained financing warning that the laxity may cost the world more if not redressed now.
Secretary General Antonio Guterres implored world leaders and negotiators put aside their differences and reach consensus for a historic climate finance deal to find resources to redress the gap for the long haul arguing:
“Failure is not an option” he emphasized, warning that the result of inaction could be catastrophic.
‘Clock is ticking’
The UN chief emphasized the urgency of the moment noting: “The clock is ticking. COP29 is now down to the wire.” While progress has been made and areas of convergence are emerging, significant differences still remain.
But without decisive action, the consequences could ripple far beyond this summit, potentially undermining near-term efforts and complicating preparations for COP30 in Brazil, he noted.
“Failure might jeopardize both near-term action and ambition in the preparation of new national climate action plans,” Mr. Guterres warned, adding that it could accelerate the approach of irreversible climate tipping points.
A clear path forward
The Secretary-General underscored the critical need for an ambitious new climate finance goal: a comprehensive financial package designed to mobilize resources for developing countries, enabling them to implement climate action plans aligned with the 1.5-degree Celsius target.
He emphasized the importance of financing initiatives that support nations in transitioning to clean, affordable energy while reducing emissions.
Additionally, he highlighted the necessity of strengthening disaster resilience by securing funds to protect vulnerable populations from the escalating impacts of climate disasters. Restoring trust between nations was also a key focus.
There is an unwavering need to build solidarity through international cooperation under the framework of the Paris Agreement.