COP29 president says New Collective Quantified Goal ‘top priority’
India, in line with the needs of developing countries, has said in the past that developed countries need to provide at least USD 1 trillion per year as climate finance.
The UN Climate Meeting (COP29) in Azerbaijan’s Baku opened with the Presidency laying down its expectations before delegates from 196 countries ad stating that its top priority is to agree on a fair and ambitious New Collective Quantified Goal (NCQG) on climate finance.
COP28 president Sultan Al Jaber formally handed over the UAE’s presidency to Azerbaijan, and said, “The consensus we achieved in Dubai was historic. Yet history will judge us by our actions, not our words... Let positivity prevail and let it power the process. Let actions speak louder than words. Let results outlast the rhetoric and remember, we are what we do, not what we say.”
Mukhtar Babayev, the COP29 president, said over the next 12 days, countries will have to resolve differences on contributors to, and quantum of, the fund and set the new goal.
He also referred to a “realistic goal” of mobilising hundreds of billions from the public sector as against trillions that developing countries need.
“We now want to be crystal clear about our expectations. Our plan is based on two pillars: to enhance ambition and enable action. This means setting out clear climate plans and delivering the finance we need. These two pillars are mutually reinforcing, each sending a strong signal to the other. Because, as we mobilise climate finance, we allow for higher ambitions. And as we signal higher ambition, we build trust to unlock greater financial commitments,” Babayev said.
“We have seen some progress on access features, transparency, and a ten-year time frame. We know the needs are in the trillions, but there are different views on how to achieve that. We have also heard that a realistic goal for what the public sector can directly provide and mobilise seems to be in the hundreds of billions,” he added.
The NCQG is the successor to the Global North’s annual USD 100 billion climate finance commitment for developing nations and is expected to be operationalised from 2025.
India, in line with the needs of developing countries, has said in the past that developed countries need to provide at least USD 1 trillion per year, composed primarily of grants and concessional finance. Brazil on behalf of Argentina, Brazil, Paraguay and Uruguay, has submitted that developing countries’ party needs are currently estimated at USD 5.8–5.9 trillion for the pre-2030 period. The Arab group has set a quantum of USD 1.1 trillion from developed to developing countries, not including arrears for the 100 billion (from pre-2025 period).
According to Centre for Science and Environment (CSE), COP29 is the most important climate conference since Paris in 2015 – given how crucial financial support is for developing countries to reach their climate goals. CSE suggests spending less than 1% of global GDP annually (about US $1 trillion) can fulfil the immediate climate needs of developing countries.
According to the Second Needs Determination Report by the UNFCCC Standing Committee on Finance (SCF), USD $5.012-$6.852 trillion will be required until 2030 to support developing nations to achieve their stated Nationally Determined Contributions (NDCs).
The goal lof hundreds of billions may fall short of developing countries’ expectations.
“The COP29 Presidency has made every effort to bring the parties closer together. But we still have much to do and just twelve days to land a deal. We now urgently need to finalise the elements, resolve our differences on contributors and quantum, and set the new goal. These negotiations are complex and difficult. We understand the political and financial constraints,” Babyev said.
First, these numbers may sound big, but they are nothing compared to the cost of inaction. These investments pay off. And second, countries are in this together. “Nothing has a greater impact on the security, prosperity and well-being of all nations than climate change. Let us remember how a goal helps us. It will send a strong signal to financial markets, provide greater certainty for long-term planning, build trust and momentum for collective action, and hold us all to account,” he added.
‘UN process is working’
This UNFCCC process is the only place we have to address the rampant climate crisis, and to credibly hold each other to account to act on it, UNFCCC executive secretary Simon Stiell said on Monday at the opening of COP29.
HT reported on November 9 that major world powers, including the United States, China, and India, have not sought speaking slots for their heads of state at the COP29 World Leaders Climate Action Summit, scheduled for November 12-13 in Baku, indicating high profile absences that climate experts see as a worrying sign.
Stiell, while not referring to the absences, said, “We know our process is working. Without it, humanity would be headed towards five degrees of global warming. In these halls, we negotiate on specific pieces of the puzzle each year. It can feel far away from what’s happening in Florence’s (islander from Carriacou) living room. But we cannot afford to continue up-ending lives and livelihoods in every nation – so let’s make this real.”
“Do you want your grocery and energy bills to go up even more? Do you want your country to become economically uncompetitive? Do you really want even further global instability, costing precious life? This crisis is affecting every single individual in the world, one way or another,” he added.
Though the response to COP29 at Baku has been muted, Stiell said countries should not leave without a deal.
“We cannot leave Baku without a substantial outcome. Appreciating the importance of this moment, Parties need to act accordingly. Show determination and ingenuity here at COP29. We need all parties to push for agreement right from the start – to stand and deliver.”