World Resources Institute Europe’s Post

"The less the world achieves now, the more we will need to invest later." A report by the Independent High-Level Expert Group on Climate Finance suggests that by 2035, richer nations, development lenders and the private sector must provide US$1.35 trillion annually to developing countries to finance climate action. This was up from the previous goal of US$100 billion set for 2023. The report further explains that any shortfall in investment will only add pressure on the years to follow. With climate financing being a central focus of #COP29, the summit’s success is likely affected by whether nations can agree on a new target. #ClimateFinance

🌍 Heading to the Bonn June Climate Meetings, our team includes Katherine Browne, who will join the tenth Technical Expert Dialogue (TED10) to discuss the New Collective Quantified Goal on Climate Finance (NCQG) – a process she has been actively shaping for a year. This goal, negotiated by all countries under UN Climate Change, aims to determine the total amount of financial support wealthy nations must provide to poorer ones for their climate change efforts. “How much money is needed and where should it be allocated? The short answer is: a lot; and current funds are nowhere near,” Browne said, providing the following estimates based on UN data: • $2.1 trillion for mitigation • $387 billion for adaptation • Between $290 billion and $580 billion for loss and damage The success of COP29 Azerbaijan next November, and the urgent global shift in climate finance hinge greatly on the NCQG. Browne has been advising governments to ensure that scientific insights shape these crucial political deliberations. In her view, it is crucial to have a goal that matches the challenge's magnitude while also transforming our entire financial system to confront climate change. She aims to see a focus on reprioritizing investments, defining appropriate language for the framework, and addressing issues of accountability. Stay tuned for the full story on our team's activities in Bonn. We will be sharing insights from our experts including Katy Harris, Mikael Allan Mikaelsson MBE, Maximilian Bruder, Zoha Shawoo, Maya Rebermark, Kate Williamson and Rosie Witton. 🔗 And learn more on Browne's hopes and expectations in our Q&A: https://buff.ly/4c0WCNL #Bonn #JuneClimateMeetings #NCQG #TED10 #COP29 #ClimateFinance

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 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.

Rich individuals in all countries must pay more to tackle the climate crisis, whether through taxes or charges on consumption, one of the architects of the Paris agreement has said. There is a growing consensus on the need for some kind of global wealth tax, with Brazil, which will host the Cop climate summit next year, an enthusiastic Global rich must pay more to tackle climate crisis, says architect of Paris deal https://lnkd.in/eUDt8mw2

As the annual climate change summit entered the fourth day Brazil, South Africa, India and China (BASIC) also reiterated the need to fully implement the Paris Agreement 2015, a legally binding international treaty COP29: BASIC countries ask rich nations to honour commitments for climate finance rather than ‘diluting obligations’ - https://lnkd.in/gYp5y9i4, For the best experience read this on The Hindu App. https://bit.ly/THNewsApp

Alarmism is a multi trillion dollar business model 🤔 Nearly half of 2024 budget not received, analysis shows. US and China have not yet met funding obligations. Budget cuts already affecting some climate meetings. The leading U.N. body on climate change is experiencing a severe budget shortfall, according to a Reuters analysis of documents from the world body - a funding gap that diplomats said could impair international climate dialogue. The analysis found a budget hole of at least 57 million euros ($61.53 million) for 2024 - or nearly half of the funding needed for the U.N. Framework Convention on Climate Change (UNFCCC) secretariat to run annual climate negotiations among nearly 200 countries and to help implement any agreements that are made. https://lnkd.in/dM3MbbJs

Many in the climate policy world are enjoying some summer downtime, knowing September will plunge them back into the usual diplomatic frenzy leading up to COP. But there's no rest for those working on the thorny issue of climate finance. The question of how to raise more for poorer countries is an all-consuming issue that will be centre-stage at the COP29 negotiations in Azerbaijan in November, tasked with agreeing the "New Collective Quantified Goal" (or NCQG as it's snappily known). It's a challenge that has become extremely politicised as wealthy countries met the previous $100-billion goal two years late amid accusations that too much of it came as loans. For the NCQG, rich nations don't want to start talking about higher amounts without getting more countries to cough up. They say the world has changed since the original contributors' list was defined in the 1990s and that some big emerging economies, like China and the Gulf states, have become more polluting and prosperous. So they want them to pay into the pot too. But developing countries think this is a slippery slope and could upset the underlying principle of global climate action: that those who are most responsible for global heating due to their historically high emissions should bail out those less to blame. At the mid-year Bonn talks, this difference of opinion led to an impasse in the negotiations - which the COP29 hosts must unblock if the summit is to land an NCQG as promised. Matteo Civillini reports for Climate Home News on a recent proposal from Switzerland with new criteria that could redefine the donor pool - and another from academics that would allow some countries both to give and receive. One thing is clear: it can't remain a taboo topic.

The climate finance conundrum! The world faces a $2.7 trillion annual climate investment gap by 2030. Can nations invest now to avoid future losses? Another topic in the news, but featuring less in data journalism, is the 29th United Nations Climate Change Conference (COP29), which began on November 11 in Baku, Azerbaijan. By the end of the conference, many promises will have been made or renewed. But will they be enough? According to an analysis by Moody’s, there is a funding gap for fighting climate change — a big one. The report states that large sums are needed for the world to reduce its emissions and adapt to the effects of climate change and, although investments have increased rapidly since the 2015 Paris Agreement, they are far from being sufficient. According to the report, the annual climate investment gap would be US$2.7 trillion by 2030 — about 1.8% of global gross domestic product (GDP). For Moody’s, emerging economies will be the hardest hit, but the consequences for advanced economies could also be severe. The report highlights a series of recent climate events in different countries and shows how these extreme phenomena can affect global GDP. https://lnkd.in/dY9n42fb

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