THE FINANCE COP

Context: From November11,
the world will be looking to climate negotiators, especially those from the developed
countries, to ramp up actions to mitigate global warming and afford protection
to the most vulnerable. For the first time in 15 years, the UNFCCC’s Conference
of Parties (CoP) is slated to provide guidelines for financing climate action. At
Copenhagenin 2009, developed countries agreed to mobilise $100 billion every
year by 2020 to help developing countries address climate-related challenges.
They managed to deliver on the promise partially, that too by 2022. Meanwhile, the
Global South’s financial burden has increased several times from what was estimated
at Copenhagen. CoP29, which begins in Azerbaijan’s capital Baku on Monday, is expected
to set up a new financial target, and funding mechanism. That’s why even before
it has commenced, the Baku meet is being described as the “Finance CoP”.

Key points

·      
Overview: The
29th annual climate conference under the United Nations Framework Convention on
Climate Change (UNFCCC) is set to take place in Baku, Azerbaijan, on November
11-12, 2024.

·      
Critical Emission Targets: To
limit global temperature, rise to 1.5°C above pre-industrial levels, scientific
assessments indicate that greenhouse gas emissions must peak before 2025 and
decline by at least 43% by 2030. However, achieving this target appears
increasingly unattainable. Current projections suggest that, despite collective
commitments from various countries, global greenhouse gas emissions are
expected to decrease by only a mere 2.6% by 2030 compared to 2019 levels. This
limited reduction is alarming, especially considering that global emissions
have continued to rise, reaching approximately 53 billion metric tonnes in
2023, except during the COVID-19 pandemic.

·      
Finance COP:
The upcoming conference in Baku is being characterised as a pivotal “Finance
COP,” emphasizing the urgent need for robust financial commitments to address
climate change. It is crucial that financial mechanisms are established to
facilitate the transition to low-carbon economies, particularly for developing
nations.

·      
The $100 Billion Pledge: During
the Copenhagen climate summit in 2009, developed nations committed to providing
$100 billion annually by 2020 as climate finance to assist developing countries
in their transition to low-carbon economies. However, this promise remains
largely unfulfilled, leading to frustration among developing nations. The lack
of clarity in defining “climate finance” and delays in financial disbursement
mechanisms have exacerbated these concerns.

·      
Way Forward: As
countries prepare to meet in Baku, it is crucial to focus on clear, actionable
steps rather than mere rhetoric. The time for action is now.

Building
Consensus on Funding and Implementation- To make real
progress, both developed and developing countries must work together. This
collaboration requires strong, clear commitments to provide financial support
and share the responsibility of reducing emissions.

Enhancing
Transparency and Accountability- Developing nations should
clearly understand how climate finance works, and developed nations must be
held accountable for fulfilling their financial promises. Establishing robust
oversight mechanisms will ensure that funds are defined, distributed, and
utilized effectively.