Loss & damage fund key to Africa’s just green transition

A new climate finance goal is expected out of the ongoing COP29 summit in Baku. Developing countries need trillions of dollars for adaptation, mitigation and addressing the climate crisis. CNBC Africa’s Aby Agina spoke to Harjeet Singh, Global Engagement Director, Fossil Fuel Non-Proliferation Treaty for more. 

Transcript

A new climate finance goal is expected out of the ongoing COP29 summit in Baku. Developing countries need trillions of dollars for adaptation, mitigation and addressing the climate crisis. Well, I spoke to Harjeet Singh and here's more. This is the second week and the penultimate day to have this conference really delivering on the mandate that it has been entrusted with, which is to agree on a new climate finance goal. And I must say that the negotiations have been really intense. We got a draft this morning and which is very disappointing, especially when we find that there is no number being provided by developed countries on how this new climate finance is going to look like in terms of the quantum. Developing countries have been very forthcoming and they've already mentioned several times in their proposals that we need trillions of dollars annually for range of climate action from mitigation to adaptation to addressing loss and damage, but developed countries have not yet mentioned what their commitment is going to be. And another thing that we find in the latest draft that it just mixes everything together on mitigation, adaptation and loss and damage without providing specific sub-goals, something that has been a clear demand from developing countries as well as civil society. So overall, the draft that has come out this morning, after years of negotiations, I must mention that this process started three years ago. We have had at least 14 meetings and several ministerials, yet we are not at a point where we can say that we are going to have a bold and ambitious new climate finance goal coming out of COP29 tomorrow. And of course, right now, the big conversation around the draft text and perhaps breaking it down for us, what will be your anticipation and of course, what will this mean for low-income countries? Well, I must say that low-income countries are at the receiving end. They do not have sufficient resources to prepare for climate impacts. And in fact, they are already facing devastating floods, storms, droughts and even rising of seas and glacier melt. And because of that, they are losing their homes, their livelihoods, their crops and their property. And they are not getting adequate support even to recover from these impacts. And this particular new climate finance goal must address all these concerns. And the calculation is that we are going to be needing at least 1.3 trillion dollars, and that's the demand coming from developing countries, to make sure that there is sufficient resource provided for adaptation and loss and damage in the form of grants, as well as money for moving away from fossil fuels towards renewable energy. And for low-income countries, their priority is to get money in the form of grants and not loans as they are already facing the debt crisis. So it's extremely important for the developed world leaders to step up and make sure that we have an ambitious goal tomorrow before we leave Baku after the top 29 finishes. And finally, for the loss and damage, this was one of the key issues that was brought up in COP28, and now we have a whole team that has been assembled behind the loss and damage fund. Perhaps what will be some of the top priorities, especially for countries that have been claiming for reparations, that have borne the brunt of the devastating effects that the climate action has had on their various nations? Indeed, loss and damage has been a very contentious issue, not just over the last two or three years, but 30 years. Low-income countries have been pushing for it, and particularly led by island states and least developed countries. And eventually, we got a decision on loss and damage fund on the African soil in 2022 at Sharm el-Sheikh, COP26. And we have also been able to, sorry, that was COP27, and we have also been able to operationalize the fund. But the fact is, we need hundreds of billions of dollars annually, and the money that has been offered so far is not even a billion dollar. So the fund is getting operationalized. But if we do not get a decision at COP29, which provides substantive amount of money to the loss and damage fund, we will not be able to meet the needs of vulnerable communities around the world, and particularly in Africa. So it's really fundamental that this new climate finance goal includes loss and damage, which right now it's not. So the current draft keeps loss and damage out of this new goal. We will be really struggling to raise money for the new fund. So it's absolutely important to make sure that money is provided to the new fund so that we are able to meet the needs of communities that are facing climate emergency right now. How much are we talking about in terms of meeting this ambitious climate goals? There are estimates that we will need $290 to $580 billion annually in developing countries alone. There are other estimates which take us way beyond $500 billion. So what civil society has been demanding that at least $400 billion must be allocated for loss and damage fund annually so that we are able to support communities and countries that are already losing their homes and crops in the face of climate change. So we need hundreds of billions of dollars annually. So the breakup that we are providing is at least $400 billion annually dedicated for addressing loss and damage.

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Developing Countries Demand Trillions of Dollars for Climate Finance at COP29 Summit in Baku

Theme: Urgent Need for Trillions of Dollars in Climate Finance at COP29 Summit

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Article Summary

The ongoing COP29 summit in Baku has been marked by intense negotiations as developing countries push for a new climate finance goal. In an exclusive interview with CNBC Africa, Harjeet Singh, Global Engagement Director, Fossil Fuel Non-Proliferation Treaty, highlighted the urgent need for trillions of dollars for adaptation, mitigation, and addressing the climate crisis. Developing countries have emphasized the necessity of financial support from developed nations, but the latest draft of the climate finance goal has left much to be desired. Singh expressed disappointment over the lack of a specific commitment from developed countries regarding the quantum of the new climate finance and the absence of clear sub-goals for mitigation, adaptation, and loss and damage. The current draft fails to meet the ambitious expectations set by developing countries after years of negotiations and significant challenges faced by low-income nations. Singh underscored the critical importance of addressing loss and damage, particularly for vulnerable communities in Africa and other regions impacted by climate emergency. The lack of substantial funding for the loss and damage fund could jeopardize the ability to support communities facing devastating climate effects. The demand for hundreds of billions of dollars annually, with at least $400 billion allocated for the loss and damage fund, highlights the magnitude of financial resources required to combat the climate crisis. As the COP29 summit approaches its conclusion, the pressure is mounting on developed nations to step up and commit to a bold and ambitious climate finance goal to ensure a just green transition for all.


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"Developing countries have been very forthcoming and they've already mentioned several times in their proposals that we need trillions of dollars annually for a range of climate action from mitigation to adaptation to addressing loss and damage, but developed countries have not yet mentioned what their commitment is going to be."

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COP29, Baku summit, climate finance, developing countries, adaptation, mitigation, climate crisis, Harjeet Singh, loss and damage fund, trillions of dollars, ambitious goal