COP29 Climate Finance Deadlock Persists Despite G20 Talks in Rio
As COP29 negotiations enter a crucial stage in Azerbaijan, hopes for a break with regard to the negotiations on climate finance remain dim. The recent G20 Summit that ended in Rio de Janeiro, Brazil, has failed to provide the much-needed guidance to many negotiators as it failed to offer concrete commitments to overcome the stalemate.
G20 pledges support but lacks specific commitment
The G20 leaders’ declaration agreed to reaffirm support for the COP29 presidency in developing a New Collective Quantified Goal on climate finance. It welcomed the New Delhi declaration, which underlined scaling up climate finance from “billions to trillions” through diverse funding sources, but did not indicate the financial contributions that developed countries are willing to provide to help the developing world tackle the impacts of climate change.
This ambiguity continues to leave COP29 negotiators banging their heads against the wall as the impasse in week-long talks hangs in the balance over such fundamental issues as the full financial target, the proportion of public as opposed to private funding, and what countries would contribute.
COP29 Negotiations Stalled Over Key Disagreements
The COP29 meeting, held in Azerbaijan, aims to build consensus on a global climate finance agreement that could accelerate climate action. However, negotiations have stalled over irreconcilable differences.
Developing countries, led by Brazil and other Global South nations, have insisted on higher finance, citing the historical responsibility of the wealthier nations for emissions. On the other hand, developed nations, particularly in Europe, are insisting on more aggressive expansion and have called on all major economies to contribute to climate finance.
The host country’s chief negotiator, Yalchin Rafiyev, stated that a draft NCQG was expected by Wednesday evening. However, with no agreement in sight, the likelihood of finalizing a comprehensive plan remains uncertain.
G20’s Role in Climate Finance
Given that the G20 represents 85% of the global economy and 80% of all GHG emissions, these nations are strategically important in determining the direction of climate finance. Notably, they are also the largest providers of multilateral development banks that are crucial to mobilization of funds for climate projects.
Despite their clout, internal divisions among G20 members have stalled progress. Last week, efforts to adopt a joint G20 statement on climate finance were derailed over competing priorities. European countries wanted all countries to contribute more, while developing countries stood firm against this, seeking to stick to the principle of “common but differentiated responsibilities.”
The Call for Greater Steps towards Climate Finance
Urgency cannot be stated too strongly about climate finance. Developing countries, adversely and disproportionately impacted by climate change, need huge financing efforts for adaptation to climate impacts, transition to clean energy, and future risks mitigation.
Experts have demanded an NCQG higher than the $100 billion annual climate finance target that developed countries had committed to reach by 2020, which they have so far not met entirely. It will be set at a higher amount than before to match the 1.5°C limits of rising global temperatures as agreed to under the Paris Agreement.
However, disagreements over certain aspects have stalled progress on the NCQG. These include:
Financial Numbers: It is still unclear how much climate finance needs to be raised.
Source of Funding: The share of public funding versus private funding is under controversy .
Contributing Countries: No consensus has been built on whether the emerging countries China and India would also contribute along with the developed countries.
Future Road for COP29.
Little guidance is given by the G20 summit, and the pressure is now on COP29 delegates to find common ground. Observers still point out that there is not much of a mandate from the major economies and that finding a meaningful agreement on climate finance will be difficult.
The draft NCQG will be announced soon. Much compromise will be needed before more concrete decisions will be made with developed and less developed countries bridging the gap
Conclusion
The deadlock at COP29 shows that global climate negotiations are quite challenging. Where G20 leaders expressed intent on scaling up climate finance, the actual commitment to certain amounts contrasts well with it as the crucial issue to be reached in an appropriate consensus. The world waits for COP29 to make some breakthroughs in climate finance as time ticks away and impacts of climate change grow.
Sources:
- G20 Leaders’ Declaration, Rio de Janeiro
- COP29 Updates, Reuters
- New Delhi Declaration on Climate Finance