Though there has been progress on technical discussions on climate finance, need for political engagement remains crucial
COP28 began on November 30, 2023 in Dubai, UAE. Photo: @COP28_UAE / X (formerly Twitter) The 28th Conference of Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC) has commenced in Dubai, United Arab Emirates. The new climate finance goal was one of the first topics discussed.
A decision on the goal will be finalised by 2024, making the discussions this year crucial for the timely delivery of an outcome. In this regard, the Eighth Technical Expert Dialogue (TED 8) on the New Collective Quantified Goal (NCQG) was held on November 28, 2023.
Facilitated under UNFCCC Ad Hoc Work Programme 2022-24, seven TEDs have been held so far. The objective of the TEDs is to deliberate on the technical and procedural processes needed to identify a climate finance goal that best reflects the needs of countries today.
At COP15 in 2009, developed countries declared a target of providing $100 billion per year from 2020 onwards to developing countries for delivering climate action. This has been the closest the global community has reached to a ‘climate finance’ goal so far.
However, this was deemed problematic for two key reasons. First, the $100 billion figure was unnegotiated and somewhat arbitrary. It did not reflect the needs of developing countries and was declared without their consultation.
Second, according to the most recent Organisation for Economic Cooperation and Development (OECD) analysis, this goal has not been met in any year since 2020. According to OECD, in 2021 the total climate finance provided by developed countries stood at $89.6 billion. The OECD has suggested that it ‘may’ have been met in 2022, but there is no conclusive and publicly available data to back up this claim.
Against this backdrop, the TEDs have been critical in identifying a new climate finance goal, or NCQG, that is particularly reflective of the needs of developing countries, beginning from a floor of $100 billion. The recent TED 8 was the latest in this regard. In addition to the TEDs, a High Level Ministerial Dialogue on climate finance is to be held on December 3, 2023 in Dubai.
The most coveted event at COP28 this year is the first ever Global Stocktake, the process by which all countries reflect upon the progress made on the climate goals laid out in the Paris Agreement. In line with the theme of reflections, TED 8 also focused on taking stock and using insights for the coming year.
The objectives of TED 8 were twofold:
The format of the dialogue consisted of panel discussions, break-out group discussions, and open discussion among those present and those participating online. Summarised here are key themes that emerged from the nearly day-long proceedings.
Need to fast-track engagement with ministers: Nearly all participants representing different blocs and stakeholders emphasised the need to accelerate political engagement for issues related to the climate finance goal.
As any international agreement demands implementation on domestic levels, the need to engage ministers and heads of delegations on issues such as the structure of the goal, sub-goals therein, and the temporal scope of a new finance goal early on in 2024 was emphasised.
Converting technical insights into actionable political items is time-consuming, so the need to streamline processes quickly was mentioned.
Need to draw on other UNFCCC experiences: Participants across the board pointed to the need to learn from the processes of the Loss and Damage Fund’s Transitional Committee (TC) Meetings (which delivered an outcome, albeit a highly contentious one) and from the Global Goal on Adaptation.
While participants such as Meenakshi Raman of the Third World Network stated the TC meetings were able to deliver an outcome consolidating multiple views from across geographies, others, including Janine Felson, Ambassador of Belize, pointed out that, though that may be true, the climate finance goal is one that directly affects all Parties and the TC discussions didn’t quite provide the inclusivity that should be strived for when it comes to the NCQG.
Need for trust building, lessons from $100 billion goal: Several speakers, including many from countries in the Global South, acknowledged the need for building trust among different Parties and stakeholders and to act on lessons learned from the $100 billion goal.
The failure of developed countries to meet the goal as yet and attempts to shift focus onto Paris-aligned finance flows and ‘global responsibility’ need to be grappled with. In this vein, the need to ensure concrete discussions on the contributor base for NCQG and inclusion of quality of finance (types of instruments) for 2024 were highlighted.
Need to improve interlinkages of related topics: As has happened at previous TEDs, participants called for the need to work on Article 9.3 (related to provision of finance by developed countries for developing countries) and Article 2.1c (related to ensuring global finance flows are ‘Paris aligned’) of the Paris Agreement in tandem with the NCQG.
Global South voices have so far urged for a focus on the former, suggesting that shifting focus onto ‘global efforts’ for making all finance flows Paris aligned risks an abdication of responsibility of providing funds from developed nations. Additionally, the need to integrate lessons and not restrict different elements to silos was highlighted, for elements such as quantum of the goal, sub-goals and targets, time frames for meeting it, types of sources of funding, etc.
Some progress, but more work needed: The recognition of the need for public finance to be featured as a sub-goal or as a separate feature was considered an achievement of the work so far. The improvement in gender balance at the meetings and inclusivity were mentioned by many.
However, as a representative of the Heinrich Boll Foundation pointed out, gender balance has to extend beyond the podiums. She stated that despite the progress, gender responsiveness in climate finance provision is the need of the hour, focusing on who has access to the funds, particularly marginalised groups.
Several participants pointed out that, despite a lot of movement on various topics, an agreed-upon definition of climate finance actually remains elusive.
Overall, the discussions acknowledged the progress on moving towards identifying a new, equitable climate finance goal. 2024 will be a crucial year for these discussions, demanding an outcome based on the various technical inputs so far. Primarily, the need to make technical insights accessible on a political level was identified as one of the main priorities.
For the same, the High Level Ministerial Dialogue on the NCQG, which is to be held on December 3, 2023 at COP28 will play a crucial role. This, even though some participants pointed out the fact that most ministers are likely to only arrive in Dubai much later in the week.
There are at least four more technical dialogues on the climate finance goal slated to be held next year. Truly measuring progress will require an assessment of the final outcome that is created in 2024 — hopefully, one rooted in equity and reflective of the needs of developing countries and vulnerable populations across the world.
We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together.
.png)
Comments are moderated and will be published only after the site moderator’s approval. Please use a genuine email ID and provide your name. Selected comments may also be used in the ‘Letters’ section of the Down To Earth print edition.