COP29 has entered its first week with expectations high on reframing of climate finance so that it can keep up with the growing financial needs of countries suffering from climate-related disasters. The event is now dubbed as “finance COP”
The UN climate change conference this year is being held in Azerbaijan’s capital, Baku, and will run until Nov 22. As the needs for financial support are growing among countries suffering from climate disasters, COP29 (The 29th Conference of Parties to the UN Framework Convention on Climate Change (UNFCCC)) is highly expected to deliver a facelift of the current climate finance, which is criticised as falling far short of supporting the ongoing attempts to mitigate climate disasters.
The event is expected to discuss and agree on the so-called New Collective Quantified Goal on Climate Finance (NCQG) to reframe the current climate finance, first set at around US $100 billion a year in 2009 out of the promises from developed countries to support climate action of developing countries. With climate disasters taking place more intensely, it’s estimated that the needs for climate finance are growing five times or more, or at least US $500 billion to one trillion a year. Aside from mitigation efforts, the fund is expected to help cover the loss and damage caused by climate change.
Dr. Phirun Saiyasitpanich, Director-General of the Department of Climate Change and Environment, said Thailand has placed its expectation on the newly set-up Loss and Damage fund and will work intensively at the event to ensure that the country will have access to it. This is because Thailand is ranked the world’s 9th worst climate risk country and the fund will help increase a chance for the country to minimise impacts and risks from climate change as well as adapting to it better.
Thailand will also focus on the development of the new indicators for adaptation to ensure that the country’s plan and indicators will be in line with global standards, the DCCE’s chief noted.
Loss and Damage fund and Adaptation work have been highlighted in COPs in recent years as the world has been hit hard by climate disasters. At COP28 in Dubai, the Global Goal on Adaptation (GGA) and its framework, which identify where the world needs to get to in order to be resilient to climate impacts and to assess countries’ efforts, were eventually adopted alongside the new Loss and Damage fund.
UN climate chief Simon Stiell said at the opening of the conference on Monday that setting an ambitious new climate finance target is crucial for the well-being of all nations, including the wealthiest and most powerful.
As reported by UN News, Mr. Stiell said that every country would pay a terrible price if at least two-thirds of the world’s countries cannot afford to rapidly reduce their emissions. Moreover, the entire world economy could collapse if countries are unable to strengthen their supply chains in the face of rising costs linked to climate shocks, citing an example of the Panama Canal, where water levels dropped and this had a dramatic impact on shipping volumes.
“Let’s dispense with any idea that climate finance is charity. Runaway climate change is impacting every single individual in the world one way or another,” remarked Mr. Stiell, the Executive Secretary of the UNFCCC from Grenada, where his home island of Carriacou was nearly flattened by Hurricane Beryl this past July.
Mr. Stiell posed a series of simple questions to the delegates: Did they want their grocery and energy bills to rise even more; their countries to become economically uncompetitive? Did they want even further global instability, costing precious life?
If the answer to any of those questions was “no”, then making a new climate finance deal was all the more important, he noted, calling for robust reforms to the global financial system, which he believes is essential for nations to address climate impacts effectively.
“We cannot leave Baku without a substantial outcome,” the UN Climate convention’s Executive Secretary said, challenging delegates to “stand and deliver.”
“Tear down the walls”: UN Chief
UN Secretary-General António Guterres also addressed before leaders who gathered at the World Leaders Climate Action Summit, the ministerial-level segment, that they must take immediate steps to cut emissions, safeguard people from climate chaos, and “tear down the walls to climate finance” in response to the “masterclass in climate destruction” that the world has witnessed in 2024.
In his opening remarks, Mr. Guterres pointed to the proof, noting that 2024 is almost certain to be the hottest year ever recorded. No country is spared from climate destruction ranging from hurricanes to boiling seas, drought ravaged crops, and more, all being supercharged by human-made climate change, he added.
“Unless emissions plummet and adaptation soars, every economy will face far greater fury,” remarked Mr. Guterres.
“On climate finance, the world must pay up, or humanity will pay the price,” the UN chief told world leaders, reminding them that they must be guided by a clear truth: Climate finance is not charity, it’s an investment; climate action is not optional, it’s imperative.
Alongside the work on the new fund and adaptation, Thailand will also report its progress on mitigation. The country expects to cut greenhouse gas emissions by 43%, above its set target of 30-40% by 2030, or 222 tonnes of CO2 equivalent. Thailand is also working on its next NDC, which will set the new target by 2035 at 40-60%. The country is ranked as the world’s 24th country with the highest emissions of greenhouse gases. This accounts for 0.76% or 258 tonnes of CO2 equivalent.
As COP29 opened, the World Meteorological Organisation (WMO) released its State of the Climate 2024 update and issued a red alert on the rapid progression of climate change within a single generation, driven by rising levels of greenhouse gases in the atmosphere.
The years 2015-2024 will mark the hottest decade on record, with an accelerating loss of glacial ice, rising sea levels, and heating oceans, according to the WMO. Extreme weather is causing significant disruption to communities and economies worldwide, the agency noted.
From January to September 2024, the global mean surface air temperature was 1.54C above the pre-industrial average, amplified by a warming El Niño, according to the WMO.
Key issues at COP29 (Source: UN News)
- At what’s being called the ‘climate finance COP’, representatives from all countries are expected to establish a new global climate finance target. This target, or new collective quantified goal(NCQG), is seen as one of the summit’s main deliverables. It will replace the existing US $100 billion goal that is due to expire in 2025.
- Parties are looking to take steps towards operationalizing the ‘loss and damage fund’ agreed at COP28 and seen as the key international fund that would address climate change’s unavoidable harms. It is unclear when the still-forming fund will launch and begin making payments, even though the Philippines has subsequently been chosen to host its Board.
- All countries are expected to submit new climate targets – nationally determined commitments(NDCs) – by February 2025, ensuring their commitments align with the level of emissions reductions necessary for limiting global temperature rise to 1.5 degrees C and preventing some of the worst effects of climate change.
- Negotiators are looking to complete the guidelines necessary to fully operationalize Article 6 of the Paris Agreement, which permits nations to voluntarily cooperate on meeting emission reduction goals outlined in their NDCs. Among other things, Article 6 would allow them to exchange carbon credits produced by eliminating or cutting their greenhouse gas emissions, assisting other nations in achieving their climate targets.
- By submitting their first biennial transparency reports, mandated by the Paris accord to demonstrate how individual nations are addressing climate change, including their efforts to strengthen adaptation plans or reduce greenhouse gas emissions, countries are expected to increase transparency surrounding their national climate actions.
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