Finance goal at centre of Baku COP29 crisis
According to developing countries including India, developed countries are pushing for higher mitigation goals without a commitment
New Delhi: With no progress made in week 1, the COP29 Presidency decided that ministers from Egypt and Australia will conduct consultations on the structure, contributors, and overall “quantum” of the new finance goal.
They also said that ministers from Norway and South Africa will consult parties to shape the outcome on mitigation goals. These two-- elements of a mitigation plan (how countries would take climate action to meet Paris Agreement goals) and the new finance goal, to be set from the floor of $100 billion-- are at the heart of a near breakdown of talks in Baku.
One of the major contentions among developed and developing parties is the balance between mitigation and climate finance. Why should developing countries agree to stringent mitigation goals when there is no money on the table to finance climate change mitigation in developing countries, developing countries are contending.
According to developing countries including India, developed countries are pushing for higher mitigation goals without a commitment or even an indication of the quantum of the new collective quantified goal (NCQG) to be agreed upon in Baku. The developed country parties especially Environmental Integrity Group (EIG) consisting of Switzerland, South Korea, Mexico among others, Umbrella Group consisting of US, Australia, Canada; among others have said that developing countries are “blocking progress” on mitigation action.
“Developed countries are seeking elements of global efforts on mitigation as mentioned in para 28 of the global stocktake decision which was agreed upon in UAE. How can these discussions take place without agreement on finance or means of implementation in developing countries,” a negotiator from India said on condition of anonymity.
Para 28 of GST calls for need for deep, rapid and sustained reductions in greenhouse gas emissions in line with 1.5 °C pathways and calls on Parties to contribute to the following global efforts, in a nationally determined manner, taking into account the Paris Agreement and their different national circumstances, pathways and approaches: (a) Tripling renewable energy capacity globally and doubling the global average annual rate of energy efficiency improvements by 2030; (b) Accelerating efforts towards the phase-down of unabated coal power; (c) Accelerating efforts globally towards net zero emission energy systems, utilizing zero- and low-carbon fuels well before or by around mid-century; (d) Transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science, among other interventions agreed in UAE at COP28.
The Like Minded Developing Countries (LMDC), a group of over 30 developing countries which includes India said in a statement during the plenary on Monday: “As we move to the crucial week 2, we would like to provide the following process suggestions: Negotiations must be party-driven, transparent and inclusive; Issues must progress in a balanced manner; In your guidance to the co-facilitators of agenda items, we request you to convey to them to take all Parties’ views into account to offer a level-playing field and to avoid situations where Parties end up negotiating with co-facilitators of agenda items.”
“Presidency, this is a finance COP. Week one has been quite disappointing in terms of progress. We are yet to see a number on the table for the NCQG. We do not need an investment goal, nor a multi-layered goal. We do not want something that is pledged and forgotten. Nor do we want something that cannot be traced. The NCQG must be a cyclical goal whose quantum responds to the needs of developing countries, whose delivery can be tracked and which makes a difference to the lives of our peoples. Grant-based public finance is central to the NCQG,” it added.
To break the logjam, Simon Stiell, UNFCCC executive secretary said at the opening of the plenary: “We’ve worked closely with the Presidency, who have just laid out a clear approach to get us to the finish line. We can’t lose sight of the forest because we’re tussling over individual trees. Nor can we afford an outbreak of ‘you-first-ism’. Where groups of parties dig in and refuse to move on one issue, until others move elsewhere.”
“Bluffing, brinksmanship, and pre-mediated playbooks burn up precious time and run down the goodwill needed for an ambitious package. So let’s cut the theatrics and get down to real business. Yes, there are headwinds, everyone knows that but lamenting them won’t make them go away. Now is the time to focus on solutions,” Stiell added.
“There is a lot of frustration at the moment. Last week we saw some parties taking talks hostage as it became an either-or situation. This will be a COP where nothing is agreed on until everything is agreed on,” said a negotiator, on background.
Others pointed that parties have already invoked rule 16 on many matters which means there may be no outcome on them during these talks and they will be pushed to COP30.