Thiago Almeida’s Post

One of the problems is that climate Cops are not well-suited to discussions on finance. Countries send their environment ministers and teams, rather than their finance ministries. Cops have no jurisdiction over institutions such as the World Bank and the International Monetary Fund, which will be key in delivering publicly funded climate finance. Ways must be found to draw national finance ministers and international institutions more closely to the climate talks before it is too late. https://lnkd.in/deFxuZGC

As of 20 November 2024, the 29th United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, is approaching its conclusion, with critical negotiations intensifying. Climate Finance Negotiations A central focus has been establishing a new climate finance target to succeed the previous $100 billion annual commitment. Developing nations have advocated for substantial increases, with proposals ranging from $440 billion to $900 billion annually. In contrast, developed countries have suggested lower figures, with the European Union proposing a starting point of $100 billion. Debates over the proportion of grants versus loans and the inclusion of emerging economies like China as contributors have marked the discussions. The complexity of these negotiations has led to a stalemate, prompting interventions from high-level ministers to facilitate progress. Carbon Market Developments Ratifying a framework under Article 6.4 of the Paris Agreement, establishing international carbon credit trading standards, was a significant milestone. This development is anticipated to unlock substantial climate finance, benefiting developing countries by providing a regulated mechanism for carbon trading. Controversial Gas-Swap Agreement A contentious proposal emerged involving a gas-swap deal to maintain Russian fuel supplies to Europe through alternative routes. Critics have labelled this arrangement a “Trojan horse” for Russian influence in Europe, raising concerns about its alignment with the conference’s climate objectives. National Commitments and Contributions Australia has pledged $50 million to the global compensation fund for climate-related loss and damage, positioning itself as the sixth-largest contributor to this initiative. This fund is designed to assist developing nations in recovering from climate-induced disasters. G20 Influence The recent G20 summit in Rio de Janeiro reaffirmed commitments to the Paris Agreement and urged a consensus on climate finance at COP29. However, the absence of explicit obligations to phase out fossil fuels has drawn criticism from environmental advocates, highlighting ongoing challenges in aligning global economic policies with climate goals. Outlook As COP29 enters its final days, the urgency to resolve outstanding issues, particularly regarding climate finance and emission reduction commitments, is paramount. The outcomes of these negotiations will significantly influence global climate action trajectories in the coming years. Source: AP, Reuters and The Times

As of November 13, 2024, the 29th United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, has seen several significant developments: 1. Establishment of a Global Carbon Market Framework: Negotiators have ratified a framework for trading U.N.-backed carbon credits among countries, marking a pivotal step in global carbon markets. This agreement pertains to Article 6.4 of the Paris Agreement, enabling the assessment and utilization of carbon-credit programs, potentially unlocking substantial climate finance. (The Wall Street Journal) 2. Enhanced Climate Finance Commitments: Multilateral development banks, including the World Bank and European Investment Bank, have pledged to increase climate-related lending to $120 billion annually for developing nations. Additionally, the Asian Development Bank plans to allocate an extra $7.2 billion for climate projects, supported by the U.S. and Japan. (Reuters) 3. Ongoing Climate Finance Negotiations: Delegates are negotiating a new climate finance deal to support global climate initiatives, with the previous $100 billion annual pledge expiring this year. Key discussions focus on determining the size of the new target and identifying contributing countries. Developing nations advocate for a larger, specific amount to meet their significant climate needs, estimated at over $1 trillion per year. (Reuters) 4. Proposals for Innovative Funding Mechanisms: To meet new global funding targets, proposals include taxes on oil companies, flights, and shipping. These measures aim to assist poorer countries in addressing climate change, with estimates suggesting that carbon taxes on aviation and shipping could raise $200 billion annually by 2035. (The Times) 5. Host Nation’s Defense of Fossil Fuel Industry: Azerbaijan’s President Ilham Aliyev has defended the country’s oil and gas industry against Western criticism, asserting that Azerbaijan is the victim of a slander campaign. This stance highlights ongoing tensions between fossil fuel-dependent nations and global climate objectives. (Reuters) These developments underscore the complexities and challenges in advancing global climate action, particularly concerning finance and equitable responsibility among nations.

The climate finance forecast is looking stormy. At COP29 in Baku, a new climate finance goal will be adopted from a minimum of $100 billion USD per year. However, the financial resources to mitigate climate change are estimated at between $2.4 trillion USD and up to $9 trillion USD by 2030. How are regulators navigating this challenge? And how are leaders responding? Read our analysis here ➡ https://lnkd.in/eXWgVNK8

Ahead, of COP29, a quick overview on three sticking points of negotiating the new climate finance goal (NCQG) in the Lowy Institute Interpreter: https://lnkd.in/gncZVivh 1. The contributor base: realities, economic circumstances and green house gas emissions have changed since the establishment of the climate change convention (UNFCCC) in 1992. Developed countries want this to be reflected in the goal, potentially expanding the contributor base. 2. The quantum: developed countries have not brought forward a figure yet while some developing countries suggest an annual goal within the trillions. The new goal needs to be ambitious and a serious step up from its predecessor of 100bn annually but also has to be achievable to be meaningful. 3. The time frame: countries have diverging opinions on when the new goal should be achieved by. A goal to be reached too far in the future could potentially mean limited financial flows now and delay urgent action. Georgia Hammersley Michai Robertson Roland Rajah Alexandre Dayant Ryan Neelam

EU Leads Climate Finance and Carbon Market Advancements at COP29 What groundbreaking developments did the European Union achieve at the COP29 UN Climate Change Conference? At the COP29 UN Climate Change Conference, the European Union made significant strides by securing a historic agreement on climate finance and enhancing rules for international carbon markets. The EU introduced a New Collective Quantified Goal for Climate Finance, aiming to mobilize $1.3 trillion annually by 2035, with developed countries contributing $300 billion per year to aid developing nations. For the first time, emerging economies are joining as contributors. The EU also finalized rules under Article 6 of the Paris Agreement, providing UN-backed sta... 👉 Read more on our website today https://lnkd.in/d-d6g_Gt ❓ What's your take on this news? We'd love to hear your insights in the comments below! ✉️ Subscribe to our newsletter to stay updated with important industry news https://lnkd.in/dRV4mPk

COP29 Updates – Climate Finance and Beyond The Latest Developments The latest 10-page draft of the New Collective Quantified Goal (NCQG) proposal is out, but it seems to be a mixed bag. Here’s what we know: ❎No numbers yet: No $$ targets or ranges have been set (paras 22, 28). ❎Donor base: Options for voluntary participation, but no specifics (para 24). ❎Adaptation focus: Commitment to grants for adaptation (para 34). ✅Review timeline: Discussions about a review before 2031 (para 60). ✅Support for LDCs/Small Islands: Targeted financial focus (para 39). ❎Grants vs. Loans: Emphasis on grants, but private finance remains optional (paras 22, 23). Linda Kalcher of Strategic Perspectives summarized it well: “This text feels like a bluff. The presidency should know more about the landing zones. Most Global North countries are keeping their cards too close.” Gaps in Climate Finance Leadership Few G7 nations have put real numbers on the table, leading to frustration. Africa's lead envoy Ali Mohamed called the lack of progress "very frustrating," highlighting the $1.3 trillion target needed to address global challenges. Global Players to Watch China Reported $24.5 billion in climate finance since 2016 and hinted at significant contributions during G20. EU Proposes $200–$300 billion but faces internal consensus challenges. Emerging Donors: Countries like the UAE, South Korea, and Saudi Arabia are stepping up with South-South finance initiatives. Missed Opportunities for Nature Despite nature’s ability to deliver 40% of cost-effective mitigation, it has been sidelined at COP29. However, countries like Mexico are taking bold steps, allocating 1% of military spending to reforestation efforts, a model worth exploring further. Key Takeaway If COP29 falters, the blame may lie with the lack of preparation and ambition from major contributors. Yet, the emerging dynamics hint at potential breakthroughs if the political will aligns with the urgency of the climate crisis. Let’s stay tuned, push for action, and amplify solutions. The future is in our hands. Loss and Damage News Tracker Climate Action Network (CAN) Europe Pan African Climate Justice Alliance PACJA Climate Clock Lobby Climatique des Citoyens - CCL France Oxfam in Africa Africans Rising GYBN UK Climate Live Fridays For Future Kenya The Polly Foundation Michael Terungwa David PhD

'The task for Cop29, taking place this November, is to come up with a new collective quantified goal on climate finance (NCQG). This is to replace the old climate finance goal, set in 2009, for rich countries to provide $100bn a year to the developing world by 2020, a goal that was finally met in 2022. But there is no agreement on any of the substantive issues involved in the NCQG. First is the “quantum”, the question of how much finance should be provided. While all agree that trillions are needed, how much should be provided in the form of climate finance from governments is still up for discussion. Rich countries want more to come from the private sector and potentially from innovative sources, such as the carbon markets, taxes on fossil fuels, wealth taxes, frequent flyer levies and shipping levies. They also want to expand the contributor base for climate finance. Currently, only countries that were classed as developed in 1992, when the UN framework convention on climate change was signed, need contribute to climate finance for the developing world. But the world has changed vastly since then – for instance, China is now the world’s biggest emitter by far, and the world’s second biggest economy, but carries no obligations under the UNFCCC (United Nations framework convention on climate change).' https://lnkd.in/e-Z3CwVA

Enjoyed attending a COP-focused event on climate finance co-hosted by the Columbia Center on Sustainable Investment (CCSI) and Columbia Climate School.   There was much discussion over the COP’s mandate and whether it is the right platform to decide wealth transfers from developed countries to EMDEs. Some panelists were skeptical based on their experiences at COPs, while others expressed optimism.   The greatest food for thought was the idea of global government to govern issues like climate finance, emphasized by Jeffrey Sachs and Dr. Lisa Dale. The UN can’t serve this purpose since its role is mostly limited to coordinating the actions of sovereign states with national interests. Climate change, on the other hand, is an issue of global interest and spillovers.   My initial thoughts: What could a global government look like? Is it an idealistic/utopian concept, or could it be implemented practically? Would it have veto powers that could leave motions hamstrung, or could some sort of supermajority be devised to facilitate decision-making?

Impending need is to get the taxonomy right in the first place for climate finance to avoid greenwashing and more. An excellent read but sincerely a lot needs to be done