Will COP29 deliver a fair climate finance deal?
All eyes are on the global climate change negotiations starting in Baku, Azerbaijan, next week as it will lay the foundation for more ambitious climate pledges from countries, especially developing, based on the climate finance commitments to walk the path to save the planet from global warming. The United Nations Conference of Parties (COP29) starting Nov 11-22 in Baku is seen as a finance COP because global leaders are supposed to agree on what is called the ‘New Collective Quantified Goal’ (NCQG) on climate finance. The NCQG is set to replace the commitments made by developed countries in 2009 to support climate action in developing countries, by providing them $100 billion per year by 2020 – a target that has been met only once in 2022. “COP29 has the potential to become the most important climate conference since Paris – given how crucial financial support is for developing countries to reach their climate goals,” said Centre for Science and Environment (CSE) director general Sunita Narain. India has suggested that the quantitative target should be no less than $1 trillion, from developed countries’ public sources. Differences have already emerged among the developing and developed countries on the contours of the NCQG. Council on Foreign Relations (CFR) says the most contentious issues that remain are how much money developed nations will provide, and who should provide climate finance. “The United States and other major economies want to expand the contributor base, but developing nations argue that this is outside the NCQG’s mandate. Other areas of conflict include the question of who should receive monies — all developing countries or just the most vulnerable — and what type, with developing countries seeking to avoid debt financing,” said the CRF in its latest expert analysis. Climate finance The focus on climate finance could affect the level of ambition reflected in nationally determined contributions (NDC) commitments due early next year, particularly for developing countries. Those nations are hesitant to commit to more ambitious targets without first securing clear financial support through the NCQG. The first Global Stocktake (GST) acknowledged the cost of implementing current nationally determined contributions (NDCs) at $5.8-5.9 trillion in the pre-2030 period. As parties submit new and more ambitious NDCs in the first quarter of 2025, the need to mobilize greater financial flows towards climate action will increase.
