HQ Team
June 13, 2024: The global talks on climate finance have broken down due to an impasse on the amount of funding the rich nations are willing to commit to the poor countries and by whom.
A preparatory discussion in Bonn, to set a new financing target to replace the existing $100 billion set in 2020 broke down with poorer nations arguing the developed countries must fulfil their financial obligations under the Paris Agreement.
The Bonn talks were also divided on what form the rich would pay the poor and what counts as a “developed country.”
The Least Developed Nations and developing countries have also deferred on what constitutes climate finance. They say loans shouldn’t be counted under developed countries’ contributions.
Developed countries met their $100 billion a year promise in 2022 with the “largest year-on-year increase observed to date,” according to a May 2024 report from the Organisation for Economic Co-operation and Development.
Add to debt burden
About 70% of these funds were provided in the form of loans, “especially for multilateral development banks”. Climate groups argue that this increases the debt burden of the most vulnerable nations.
“The lack of progress on climate finance in the UN talks in Bonn is a disgrace, to say the least,” according to a statement from the Climate Action Network, the world’s largest environmental network.
“It is ridiculous that less than 6 months before COP29, and after two years of negotiations, developed countries have still not shown how much money they are willing to commit.
“Global North governments must urgently provide new, additional and at-scale public finance to fulfil their obligations under the Paris Agreement,” according to the statement on June 11, when the Bonn talks ended.
The network comprises more than 1,800 non-governmental organisations in over 130 countries fighting the climate crisis.
‘Time’s up’
According to the Global Campaign to Demand Climate Justice, a group of more than 200 climate and human rights organisations, “time’s up to announce the long overdue delivery of climate finance that those on the frontlines are owed.”
“Finance that is public, community-controlled, and in line with each government’s fair share of climate action. There’s no point in having ambition and setting lofty targets without a means for implementation for the Global South.”
Based on a most recent assessment conducted by developed countries, total climate finance from the $100 billion commitment continued to fall short, reaching $78.9 billion in 2018, according to the UN.
Although adaptation finance increased more rapidly between 2016-2018, its overall share of total public finance was only 21% in 2020.
The leaders of the richest countries – the US, the UK, Canada, France, Germany, Italy and Japan – known as the G7, will be meeting from June 13 – 15 in Apulia, Italy.
‘End fossil fuel era’
“The G7 Summit is a crucial moment to hold these major polluters accountable and push them to deliver new climate finance targets by COP29 in Baku, Azerbaijan,” the Climate Action Network stated in a June 13 statement.
“Given their wealth and historically high emissions, G7 countries must agree to an ambitious new climate finance goal at COP29 later this year,” said Tracy Carty, Global Climate Politics Expert, Greenpeace International.
“They need to take a strong lead in ending the fossil fuel era and provide international financial support to developing countries to stimulate climate action and help secure a safe climate for us all.”
Andreas Sieber, Associate Director of Policy and Campaigns at 350.org said: “If G7 countries want to keep priding themselves on being “world leaders,” must act as such.
“The G7 represents the world’s richest and most polluting economies, it is their responsibility to lead on publicly financing a fair renewable energy transition in the Global South.
“Failure to do so, as we watch countries suffer the impacts of the climate crisis, is an affront to our future.”
Mitigation, adaption
The Bonn talks, which ended with a 35-page “input paper” did little to achieve further action on adoption and mitigation, activists said.
Fernanda Carvalho, Global Policy Manager for Climate and Energy Practice, WWF International said the window of 1.5 degrees centigrade emission levels is “closing fast.”
“Discussions on Mitigation in Bonn – or the lack of them – are completely disconnected from a sad reality: the window to 1.5°C is closing fast.
“To get there, we need to collectively reduce emissions by 43% by 2030 and 65% by 2035 to 2019 levels.
“That demands much stronger Nationally Determined Contributions in 2025, backed up by solid technical and financial support. Instead, discussions are about ‘procedural versus substantive outcomes,’ or ‘recommendations to improve processes.’”
