…Africa’s position is clear: the continent requires $1.3 trillion per year in climate finance to meet its adaptation and mitigation goals.
…Grants, Not Loans: Africa insists that climate finance should primarily be provided through grants rather than loans to prevent increasing the debt burden of already struggling economie
THUR SEPT 12 2024-theGBJournal| The upcoming COP29 climate summit presents a critical opportunity for the global community to take decisive action against climate change.
At the heart of this year’s agenda is the negotiation of a New Collective Quantified Goal (NCQG), which aims to mobilize significant financial resources to support climate action in developing countries, particularly through the implementation of their Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs).
Africa’s Key Priorities for COP29
As a continent disproportionately affected by the adverse impacts of climate change, Africa must champion ambitious climate finance goals at COP29.
The NCQG presents a unique opportunity for a science-based approach to climate finance, moving beyond the previous $100 billion commitment that, while politically driven, fell short of meeting the financial needs of developing countries.
1-Ambition and Adequacy: The NCQG must set a bold and ambitious target that empowers developing nations to meet their climate obligations and adapt to the escalating effects of climate change.
2-Grants, Not Loans: Africa insists that climate finance should primarily be provided through grants rather than loans to prevent increasing the debt burden of already struggling economies.
3-High-Quality Climate Finance: Africa urgently needs high-quality climate finance that addresses adaptation, mitigation, and loss and damage, without exacerbating existing economic vulnerabilities.
4-A Science-Based Approach: The NCQG should be informed by science, with a focus on equity and fairness, ensuring developed countries provide the necessary financial support to developing nations, including clear distinctions between grants and loans.
5-Financial Support for Adaptation: With estimates suggesting that African economies lose 5-9% of GDP annually due to climate change, there is an urgent need for significant financial flows to enhance resilience and build adaptive capacities across the continent.
Africa’s Financial Ask
Africa’s position is clear: the continent requires $1.3 trillion per year in climate finance to meet its adaptation and mitigation goals. This figure is ambitious, but given the scale of the challenge and the lack of sufficient commitment from developed nations, it is both necessary and achievable.
NCQG Negotiations: Progress and Challenges
At the recent Bonn climate talks, significant progress was made in negotiations on the NCQG. However, key challenges remain unresolved, particularly concerning the expansion of the contributor base to include emerging economies such as China and the Arab group. African nations, supported by independent observers, have emphasized that the NCQG should be financed by developed countries, as per the principles of the Paris Agreement under Article 9.
African Ministers Call for Clear Action
African Ministers of Environment convened at AMCEN (African Ministerial Conference on the Environment) in Ivory Coast, where they reaffirmed the need for a clear commitment to increased climate finance at COP29. They stressed the importance of flexibility in adapting to evolving circumstances while maintaining pressure on developed countries to offer more ambitious financial proposals.
Africa’s Leverage in Climate Negotiations
Should the NCQG not meet Africa’s expectations, the continent has several options to increase its leverage. African nations have the potential to lead the transition to renewable energy, given their vast natural resources and critical minerals essential for clean energy technologies. Moreover, Africa’s unified stance and commitment to sustainable development give the continent significant bargaining power in securing favorable financial terms.
Quotes from Key Stakeholders:
Iskander Erzini Vernoit, Director, IMAL Initiative for Climate and Development
“We cannot be part of a regime that is not balanced. We know what we’re fighting for. The question becomes, ‘How do we approach this fight?’ This specific point provides a basis for our approach.
The UNFCCC regime in recent years has been unbalanced. Numerous new objectives, aspirations, and goals have been set without the necessary finance to ensure their delivery. This risks being just a lot of hot air and a distraction from the task at hand. As Africa and developing countries worldwide, we must be clear: we cannot continue participating in the UNFCCC process if we do not receive serious, new, and additional increases in finance to support our aspirations.
Otherwise, it becomes a performative charade, unbalanced, unjust, and something history will not approve of. This is a moment to draw a line in the sand. In the words of Dr. Martin Luther King, Jr., ‘There comes a time when the cup of endurance runs out.’ It is time to say, ‘Okay, this is the moment where we are willing to walk out if our demands are not considered seriously.’
Julius Mbatia, Climate Finance Expert
“We know that the financial architecture has not benefited developing countries because it was not designed with their needs in mind. The climate sector should not be approached the same way. Financing for climate is different from financing for development or economic purposes. It requires specific principles, such as being additional to development finance and new, as climate change imposes an additional burden on developing countries with constrained economies.
The discussion on climate finance must focus on the needs of the African continent and be based on fair terms that reflect the realities on the ground. Grants and highly concessional financing are essential. Additionally, finance must be scaled to support not only local communities but also economy-wide approaches to ensure that economies continue to function amidst a climate crisis.
To unlock progress at the global level, strong media and communications engagement is crucial. By presenting our narratives in a nuanced way, focusing on the need for change and the shortcomings of developed countries’ leadership, we can tip the scales of the technical and political conversation in favor of genuine adherence to principles of the Convention and its Paris Agreement.
This is the year to put out Africa’s messaging in a nuanced way, advocating for a regime that serves our needs, enhances transparency, and demands fairness and equity. The current system does not work for Africa, and Africa has much to offer. Importantly, Africa has the power, agency, and natural and human capital, and we must be at the table to make things right in a global financial system and climate finance architecture that desperately needs change.”
The 29th session of the Conference of the Parties (COP29) to the UNFCCC will bring together global leaders, experts, and negotiators to address the growing challenge of climate change. The key focus for this year’s summit will be the negotiation of a new collective goal for climate finance, critical to the success of global climate action.
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