Kweku Koranteng’s Post

6th Day of COP29: Progress on Climate Finance, But Consensus Still Out of Reach! As the first week of COP29 wraps up in Baku, Azerbaijan, there has been some progress in the discussions on climate finance, but a full agreement remains a work in progress. Negotiators have made positive strides by streamlining the New Collective Quantified Goal (NCQG) draft text, though over 15 pages still need to be reduced to meet the target of a 10-page document. 💰 How Much Funding is Needed? Developing countries are calling for an annual climate finance commitment of $1.3 trillion to support their efforts in addressing climate change and meeting their ambitious climate action goals. ⤵️ Who Will Contribute? While wealthier nations were initially expected to lead contributions, there is growing pressure for emerging economies to also step in. Developed countries are now advocating for broader participation from emerging economies in the climate finance initiative. 🌱 Who Will Benefit? The climate fund will primarily benefit developing nations, with a special focus on Least Developed Countries (LDCs) and climate-vulnerable states. The Alliance of Small Island States (AOSIS) and LDCs have called for separate, dedicated funds — LDCs requesting $220 billion and AOSIS seeking $39 billion. These groups, typically allied with G77 + China, are now pushing for independent action on their funding requests. 🔋 A Day of Rest Tomorrow will be a rest day at COP29, allowing delegates to recharge before the critical discussions resume on Sunday. The outcome of these negotiations will play a significant role in shaping the future of global climate action and the lives of those most affected by climate change. As COP29 enters its second week, the world awaits to see whether leaders can reach a unified and impactful agreement on climate finance. 🌎💪

'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

We are concluding Week 1 of COP29 Azerbaijan - and it's not going great. See below for a summary of the negotiations so far. Negotiations: Limited progress has been made as Parties engage in discussions. Concrete talks on the COP29 package are essential to advance negotiations. Finance Day: The Adaptation Fund’s pledging session fell short of its $300 million goal for 2024, raising concerns about climate finance commitments. Negotiations: The New Collective Quantified Goal (NCQG) discussions are ongoing, with developing countries emphasizing the need for a balanced text that meets their needs. Adaptation Fund: Only $30 million in new pledges were made, highlighting the urgent need for increased adaptation finance. Climate Action Tracker: Current policies are projected to lead to a 2.7°C increase in global temperatures by 2100, necessitating urgent action. Key Topics Negotiations: Parties are struggling to reach consensus on key issues, particularly the NCQG and adaptation finance. Informal consultations are ongoing to streamline negotiation texts. Adaptation: The Adaptation Fund is significantly underfunded, missing its target by $200 million. Discussions on National Adaptation Plans (NAPs) are critical but have faced procedural challenges. Loss and Damage: Joint reports highlight the need for better coordination and funding for loss and damage initiatives. Parties are working towards a coherent strategy for addressing these issues. Article 6 Discussions: No substantial progress was made on Article 6.2 and 6.4, with concerns about the direction of negotiations. The Clean Development Mechanism (CDM) funding remains a contentious topic. Transparency and Reporting: Parties are finalizing agenda items related to greenhouse gas emissions and biennial reports, with some contentious discussions. Finance: Sweden pledged $763 million to the Green Climate Fund, emphasizing the need for robust climate finance mechanisms. The Baku Initiative for Climate Finance was launched to enhance dialogue on climate finance and investment. Reports and Findings Climate Action Tracker: Urges governments to recognize the urgency of climate action, projecting significant warming if current policies persist. Transformational Adaptation Report: Discusses the need for systemic changes to address climate impacts effectively. Thank you to The Global Youth Coalition

Did you know that new global climate goals are currently under deliberation? 👇 Before this year’s COP29 in Azerbaijan, countries are working towards a “new collective quantified goal on climate finance” (NCQG). This is following the Paris Agreement, where countries set the goal of $100 billion a year – a number that is now being updated… It is worth noting that the initial international pledge to mobilize $100 billion per year to support developing countries' climate action was only met for the first time in 2022 (2 years after the deadline). Now, countries are developing a new finance goal to: 💹 channel even more funds towards climate action in developing nations. This means boosting “low-carbon, climate resilient solutions in energy, transport, agriculture” and more 🚀 This should catalyse more ambitious Nationally Determined Contributions (NDCs) by 2025 Deliberations have been slow and members have yet to reach consensus on some key points… 💵 The amount of money that goes towards developing countries should be need-based. But what is that number? Estimates range across trillions of dollars annually, by 2030… 🔥 Which developed countries should pay, and how is this determined? Should the ability to contribute be based on historic emissions or modern per capita emissions? (This creates a very different looking list) ⏱ What should the time frame to meet these new goals be? 5 years? 10 or 20 years? Will there be points for revision? 🌊 While the funding will cover mitigation and adaptation, there is debate as to whether it will cover loss and damages as well. 💵 How can progress be monitored and how will countries be held accountable? A more robust framework, like the Enhanced Transparency Framework (ETF) may help. What do you think of these main points in the negotiations for international climate finance? Let us know! COP29 will be held in Baku, Azerbaijan 🇦🇿 Dates: 11 Nov 2024 – 22 Nov 2024 Read the World Resources Institute’s article about this topic here: https://lnkd.in/eAdiVfhB 👉 Enjoy this kind of content? Follow our page and visit our website for more thought leadership related to the carbon market, climate finance, and sustainable development!

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.

Alarmism is a trillion dollar business model. 🤔 A climate meeting in Bonn, Germany, has failed to make much headway on the crucial issue of defining a new climate finance goal. By the end of 2024, countries have to finalise a new sum of money — above the existing figure of $100 billion per year — that the developed world must mobilise for the developing countries to help them fight climate change. The Bonn talks, an annual fixture in June, were expected to give at least some indicative numbers. They could have been worked upon before COP29 — scheduled to take place in Baku, Azerbaijan, in November — where they have to be finalised. But this did not happen. All that came out was a 35-page, 428-paragraph, “input paper”, which was a broad description of the wish lists of different countries. The lists pertained to not just the quantum of climate finance, but also other associated issues such as who should be contributing, what should this money be spent on, and how the finance flows should be monitored. The paper is likely to be developed into a formal negotiating draft that can be agreed upon at COP29. https://lnkd.in/dtXm9zXU

On Climate Negotiations, A tale of House Divided? It’s been 2 weeks now since Baku, the dust has settled, emotions calmer enough, time for me to reflect. A key topic that featured the recent climate negotiations in Azerbaijan (Baku), dubbed the Finance COP was Climate Finance. Like any family, money matters easily get sticky and indeed sticky it got for the Climate Family - and very emotive! for context, two significant agreements were reached: ✅ Article 6 which operationalises a UN backed carbon markets, a decade since the Paris agreement was reached. Celebrated by market based mechanisms enthusiasts (big focus on mitigation) and bashed in equal measure by others keen on climate change adaptation and compensations for loss and damage.  ✅ A new commitment by developed countries to provide at least 300 billion per year by 2035 (presumably grant) to developing countries to support their efforts to deal with climate. Linked to this is a call for developed countries to raise 1.3 trillion from a wide range of sources including the private sector - thus aligned to the UN estimates. that the UN had estimated would be required. Now my reflections (and more to come): 🏦 Climate Finance is an economic issue. It’s no longer an Environmental Issue. If countries are not thinking of bringing economic actors together, you are not at the table and only playing in the margins. 🚀 Public finances will never be enough to address climate concerns - it’s getting tiger for most developed countries and geopolitical priorities always shifting. The money sits with the private sector (look at stats of climate finance flows). The CDM with its shortcomings unlocked trillions in investments under the Kyoto Protocol. The voluntary carbon market which is way more flawed unlocks more funding for developing counties than the annual flows from the multilateral climate funds combined. Private sector (international and domestic has to be in the equation). 🌟 Development, Mitigation and Adaptation are inextricably linked. Energy markets make up 25% of Global economies (and emissions of course). Focussing on adaptation and excluding mitigation is a big missed opportunity of the trillions flowing in the energy transition discourse. Building Climate resilient Economies, people and Ecosystems - borrowing the LDC vision that LIFE-AR is championing needs to have a multi-sectorial approach. To champion coordination of action and breaking silos. That way we come up Climate Resilient Infrastructure (e.g roads, bridges), Climate Resilient Industries etc, all aligned to government long term ambitions! That's how I see #raisingambition on #climateaction If you’re keen on any of these conversations, reach out!

The Talk about climate change is, in fact, a discussion about cash and a decarbonization of the economic production. Like in Brazil, we still have two different ministries: one for mining and energy, another for environment. In Brazilian subnational entities, a secretariat for economic development and another for environment. Another question is: if finance in climate discussion are so important, why banks are controlled only to financial indicators? Climate indicators need to be incorporated in its credit lines. According to The Guardian: "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/dgwmB43b

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

💲300 billion. That’s the revised climate finance target proposed at COP29. But will it be enough? Here’s the backdrop: The summit was supposed to wrap on Friday. Instead, negotiations stretched late into the weekend as nearly 200 countries debated the world’s climate funding plan for the next decade. Why the delay? Azerbaijan’s presidency proposed $250 billion—a number that developing nations found “insultingly low.” This sparked a counterproposal: $300 billion annually by 2035. Sources say the EU, U.S., Australia, and the UK have agreed to this increase. Yet, it’s unclear if developing countries will accept or if this new target will finally secure consensus. The stakes couldn’t be higher. This isn’t just about numbers—it’s about our planet’s future. What do you think: Is $300 billion a sign of progress, or just another number falling short of what’s needed? (Share your thoughts in the comments!) P.S. These negotiations remind us how complex global collaboration can be, yet how crucial it is for creating lasting change.