Cop: Countries still diverge on finance, float numbers

Market: Emissions
20/11/24

Ministers leading consultations on a new climate finance goal for developing countries — the central issue at the UN Cop 29 climate summit — said today that "divergent views" on the structure remained, but clarified on new suggestions for amounts.

The outcome of the finance discussions are inextricably linked to conclusions on mitigation, or cutting emissions. Developing countries have long argued that they cannot decarbonise or implement an energy transition without adequate finance.

Australian climate change and energy minister Chris Bowen said today that ministers heard three different proposals for a "provided quantum" of $900bn/yr, $600bn/yr and $440bn/yr. The provided quantum refers to the public finance "core" of the finance goal. He did not specify which parties were behind the proposals.

The Cop 29 presidency appointed Bowen and Egyptian environment minister Yasmine Fouad to head up consultations on the new collective quantified goal (NCQG). This is the next iteration of the $100bn/yr in climate finance that developed countries committed to deliver to developing nations over 2020-25.

But "others have mentioned a floor of [$100bn/yr] with linkages to the contributor base resolution, as well as sources and structure", Bowen said. But some countries have argued that, taking inflation into account, this would represent a drop in climate finance from previous goal.

Developing countries have broadly called for $1.3 trillion to be mobilised annually, and this has not changed, Bowen confirmed. But mobilised finance could include other sources beyond public finance, such as private-sector financing.

And many parties said that "certain building blocks" have to be in place before they can settle on a number, Bowen added. This is likely to refer to increased action on emissions reduction and to the contributor base pushed by developed nations.

Challenging negotiations look set to continue. Bolivia, speaking for the UN negotiating bloc of like-minded developing countries, today urged the Cop presidency to "restore balance to this process".

"We are also hearing in the corridors figures of [$200bn/yr] being offered by our partners for the NCQG which includes contributions from the MDBs [multilateral development banks]… this is unfathomable, we cannot accept this," Bolivia's representative added. Developed country representatives have refuted this figure, or that they have settled on an amount.

A group of leading MDBs estimated last week that they could increase climate financing to $120bn/yr by 2030 for low- and middle-income countries. The group, comprising the World Bank and nine other MDBs including the European Investment Bank, hopes to leverage an additional $65bn/yr from the private sector.

New draft texts on some of the key topics under discussion at Cop 29, including the NCQG and mitigation, are due to be released by the summit's presidency at midnight, local time.

By Georgia Gratton

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