SEI — Stockholm Environment Institute’s Post

The recent UN Climate Change talks in Bonn, Germany, ended with countries still divided on how to shape a new climate finance goal. This matters because climate finance is about funding much-needed transitions and to help countries deal with the effects of climate change. Right now, there's no clear agreement on who should pay, how much, or what types of financing should be used. “The sheer number of unresolved issues currently sets us up for a fraught two weeks in Baku. We urge countries to use every opportunity in the months ahead of COP29 to lay the ground for an ambitious yet realistic new climate finance goal that responds to the needs of developing countries", says Gaia Larsen, Director of Climate Finance Access, World Resources Institute. The lack of progress means that vital funding needed to help vulnerable countries prepare for severe weather events, like the recent floods in Brazil and Kenya or heat waves in India, is still uncertain. Strong climate finance agreements are crucial for helping countries transition to cleaner energy and make bold climate commitments. As we move towards COP29, it's more important than ever for negotiators to work together and develop a clear, ambitious financial goal that can make a real difference for people and the planet. Read WRI’s statement about the UNFCCC climate talks: https://lnkd.in/ewz5iVbX Image correction: We Need A Robust Fund To* Fight Against Climate Change. #climatefinance #climateaction #justtransition WRI Climate

🌍 Just returned from the Bonn Climate Conference (SB60), where I’ve followed the negotiations of a new climate finance goal and the discussions around Article 2.1c of the Paris Agreement, which aims to make finance flows “consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.” 💸 In 2009, high-income countries committed to mobilise $100 billion per year by 2020 to support the Global South’s climate action. According to the OECD - OCDE this target was finally met in 2022, two years past the original deadline. And now, negotiators are working on an even more ambitious goal. 🥅 When the Paris Agreement was signed in 2015, countries agreed to set a "new collective quantified goal” on climate finance (NCQG) to replace the $100 billion per year target. This NCQG is slated for adoption at COP29 in Azerbaijan this year. 🌱The new finance goal is crucial for directing greater funds towards the urgent climate action needed in the Global South. By boosting financial support, it should enable these countries to enhance their climate ambitions in the next round of national climate plans (NDCs), due in 2025. 💬🗣️However, progress has been slow. In Bonn, negotiators struggled to reach a consensus on key issues, including the total amount of the goal, its configuration (what to include and what not), and the donor base. ⏳For those looking to the UNFCCC process for answers, the outcomes from this meeting are disappointing. It seems unlikely that positions will align before Baku; they appear too cemented and polarised at this moment. However, I sincerely hope so for the planet’s sake, but especially for the people living in climate-vulnerable countries that are already experiencing extreme weather events, food insecurity, governance instability and a much more uncertain future. #BonnClimateConference #UNFCCC #ParisAgreement #COP29

📖 NEW REPORT: A fair share of climate finance? The collective aspects of the New Collective Quantified Goal In 2022, 'developed' countries finally achieved the goal of channelling $100 billion per year in climate finance to 'developing' countries. But despite this, nearly half of 'developed' countries failed to contribute their fair share. The US contributed just 32% of its fair share, leaving a $30 billion shortfall. Other countries like Norway and France picked up the slack and contributed over 200% of their fair share. One of the central issues with the $100 billion goal was this lack of accountability. As we build towards COP29 Azerbaijan where the goal's successor will be agreed, in partnership with the Zurich Climate Resilience Alliance, we have dug into what this means for the collective aspects of the New Collective Quantified Goal (NCQG). So what can the NCQG learn from the $100 billion goal? ➡️ The lack of individual accountability potentially reduced the total amount of climate finance provided, which is why many 'developing' countries are calling for a burden-sharing mechanism. ➡️ A burden-sharing mechanism would apportion responsibility for the relevant quantitative element of the new goal among 'developed' countries, holding each to account for their 'fair share'. ➡️ The NCQG should be about enhancing the quality and quantity of climate finance, and there is scope to allow other countries to assess their own capability to contribute. Read our latest 'fair share' report from Laetitia Pettinotti, Tony Mwenda Kamninga and Sarah Colenbrander: https://lnkd.in/eTR7X-37 #ClimateFinance #COP29 #NCQG #UNFCCC

The NCQG isn't just about numbers; it's about meeting the real needs of developing nations to tackle climate change. But the ultimate question is, what could the new climate finance goal look like? Imperatively, the new climate finance goal should channel greater funds toward urgently needed climate action in developing countries. It will have to support implementation of low-carbon, climate resilient solutions in energy, transport, agriculture and other vital systems. By increasing financial support, it should enable developing countries to step up their climate ambitions in the next round of national climate plans/Nationally Determined Contributions (NDCs), which are due in 2025. Ultimately, to ensure that developing nations can deal with loss and damage and fulfill more ambitious climate commitments, greater funding for climate and development is ultimately necessary. Rebuilding and bolstering confidence in the global climate financing system will start with the adoption of a robust NCQG at COP29. Additionally, at a pivotal juncture for climate action, it will foster solidarity between wealthy and developing nations. Therefore, the final NCQG needs to have an ambitious and deliverable financial commitment. It should include clear rules defining who will contribute, for what purpose, over what timeframe and how progress will be monitored. #AdaptationInFocus #ClimateFinance

The confernce of Parties of the UN Framework convention on Climate Change (UNFCCC), COP29 deal aims to scale up climate finance. However, its inadequacies highlight a persistent divide between developed (the Global Northe) and developing countries (the Global South). The failure to adequately address loss and damage, ensure sufficient public funding, and include the voices of vulnerable nations underscores the urgent need for more equitable and transparent global climate governance. Critics have called for revisiting the commitments to align with science-based goals and the principles of climate justice

Last month, COP29 president-designate Mukhtar Babayev sent out his first communication as head of the United Nations climate conference in November. His July letter urged governments to start negotiating over how to break the deadlock on finance to help developing nations tackle #globalwarming. In a climate action plan addressed to about 200 nations, Babayev described the new collective quantified goal (NCQG) on #climatefinance – the first climate finance goal after the Paris Agreement – as the upcoming conference’s “top negotiating priority”. Mid-year negotiations in Bonn, Germany in June 2024 had ended in stalemate, as rich countries started ducking their commitments to provide more finance. Part of the deadlock was due to a possible return of Donald Trump to the White House a few days before COP29, according to some negotiators. Read more about the tensions surrounding the climate finance debate: https://lnkd.in/giRBX23Y

The most extensive investor call for climate action to date was launched today. The "2024 Global Investor Statement to Governments on the Climate Crisis" is backed by 534 institutional investors managing over USD $29 trillion in assets. It urges a whole-of-government approach to implement policies that will facilitate private capital flows necessary for a just transition to a climate-resilient, nature-positive, net-zero economy. Signatories are advocating for comprehensive policies across five key areas: - Economy-wide public policies - Sector-specific strategies, particularly for high-emission sectors - Addressing challenges related to nature, water, and biodiversity - Mandating climate-related disclosures within the financial system - Encouraging private investment in climate mitigation and adaptation in developing economies Unveiled just ahead of #ClimateWeekNYC, it remains open for signatures until November 1, prior to #COP29 in Azerbaijan. The founding partners of The Investor Agenda are seven major groups working with investors: Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Inc., Investor Group on Climate Change (IGCC), Institutional Investors Group on Climate Change (IIGCC), Principles for Responsible Investment and United Nations Environment Programme Finance Initiative (UNEP FI). 

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.

Investor Agenda has gathered support from 650 investors, who collectively manage $33 trillion in assets, for the 2024 Global Investor Statement to Governments on the Climate Crisis. This statement urges governments to strengthen their climate commitments, known as Nationally Determined Contributions (NDCs), to meet the Paris Agreement’s 1.5°C goal. The aim is to drive a transition to a climate-resilient, nature-positive, and fair net-zero economy. Read more: https://lnkd.in/g23xWiRD Asia Investor Group on Climate Change (AIGCC) CDP Ceres Investor Group on Climate Change (IGCC) Institutional Investors Group on Climate Change (IIGCC) Principles for Responsible Investment United Nations Environment Programme Finance Initiative (UNEP FI)

📣 Save the date: Upcoming webinar on the new climate finance goal 🎯 Perspectives is thrilled to announce an upcoming online event that will delve into the latest developments in the deliberations for a new climate finance goal. RSVP: 🗓 19 June  🕑 14:00-15:30 CET  📍 Zoom    💡 In the context of accelerating climate change and looming debt crisis in developing countries, delivering effective and adequate climate finance is essential.  The Paris Agreement mandates the establishment of a new collective quantified goal (NCQG) for climate finance by 2025, with a focus on addressing the needs and priorities of developing nations. This event brings together key experts and climate finance negotiators to share their reflections on the status of the NCQG deliberations and their expectations for the NCQG decision at the 29th UN climate talks (COP 29). 🌏 Join us for an engaging session moderated by Igor Shishlov (Perspectives) that will reflect on this pivotal year for the future of climate finance.  🎙 Confirmed speakers and panelists:  Brenda Mwale (Loss and Damage negotiator, Malawi)  Hendrikje Reich (Ministry of Foreign Affairs, Germany)  Jan Kowalzig (Oxfam Germany) Raju Pandit Chhetri (ODI and Prakriti Resources Centre, Nepal)   Sherri H. Ombuya (Perspectives)   Secure your spot using the following link ➡ https://lnkd.in/d4j54RWz   #NCQG #COP29 #climate #climatefinance