By Jeff Kapembwa
As the COP 30 in Belem inches closer to winding down, the United Nations has reminded developed nations, key polluters to seek to mobilise US$1.3 billion in the next 10 years with US$300 billion expected to be raised in the next five years and allow vulnerable states to insulate against climate change risks.
During the COP 29 in Baku, campaigners agreed in unison to establish and mobilise a new collective quantified goal on climate change (NCQG) for climate finance, intended to mobilize at least $300 billion annually by 2035.
Arguably, the resources were intended to help developing countries adapt to climate change, build resilience, cut emissions, overcome flooded homes, failed harvests, save livelihoods, avert heat and hunger and overshoots above 1.5 degrees.
. It is a part of a broader ambition, with the Baku-Belém Roadmap to 1.3 trillion aiming to scale up total climate finance to $1.3 trillion per year by 2035, a commitment the UN seeks to be honoured to save countries affected by development countries pollution related activities.
UN Secretary General, Antonio Guterres told media during the COP ‘wind down’ meeting that the collective agreement made in Azerbaijan should be honored and assured of resources being found, with support from multilateral development banks and allow vulnerable countries to get support quickly.
Thinking beyond the COP, he said, the cost of capital for developing economies must fall drastically – through concessional finance, debt guarantees, and innovative instruments to raise the resources to pacify over the crisis and lenders should lead the way.
“We know that budgets are limited – but the financial system can unlock and multiply the available resources to achieve a much greater impact.” He said. Lenders should play a decisive role to allow financial access.
“They need to be bigger, better, and bolder – allowing them to massively increase their lending capacity and to leverage private finance at speed and scale.”
While the clarion call for climate financing has been amplified over the years, Guterres noted that political will has not been matched to make the necessary decisions.
It was envisioned that the international financial architecture can pacify over the financial gap needed, and if not tenable, reforms were inevitable and not an option.
Having met various world leaders during the COP 30, the UN fears the world faces a risk of enduring a higher risk of crossing climate tipping points – unleashing irreversible damage, including the Amazon in Brazil, calling for
alignments and ensure temperatures are retained below 1.5 degrees before the end of this century, a commitment expected to start during the COP 30 in Belém.
“A fair outcome – concrete on funding adaptation, credible on emission cuts, bankable on finance. That demands compromise and common ground.”
Key objectives and targets
• $300 billion by 2035: A specific and new target for funds to be mobilized annually for developing countries, particularly the least developed countries and small island developing states.
• $1.3 trillion by 2035: An overarching goal for total climate finance, which is to be mobilized from all sources (public and private) to support developing countries.
• Support climate action: To fund low greenhouse gas emission and climate-resilient development pathways, including the implementation of National Determined Contributions (NDCs) and national adaptation plans.
• Improve accessibility and transparency: A focus on making finance more accessible and transparent for those who need it most.
Context and implications
• Aims to address a funding gap: The goal aims to address the significant gap between the climate finance needed and what has been provided to date, building on previous, unmet targets.
• Mobilizing public and private finance: The goal includes a clear call for developed countries to lead in mobilizing public finance, while also encouraging private sector involvement, although there are differing views on the balance between these sources.
• Setting a precedent for future goals: The Baku agreements are seen as crucial for future climate negotiations and for keeping the principles of the Paris Agreement alive.