South African negotiators to push for trillion-dollar deal at COP29

Ahead of the upcoming UN Climate Change Conference (COP29) in Baku, Azerbaijan, South Africa’s negotiators and representatives said they would call for a more than tenfold increase to the long-promised but contested $100-billion in annual climate finance for developing countries.

Speaking at the National Stakeholder Consultation on South Africa's negotiating mandate at COP29 on Monday, Dion George, the minister of forestry, fisheries and the environment, said that “at least $1.3-trillion is needed [annually]”.

The billions in question relate to the New Collective Quantified Goal (NCQG) on climate finance. The United Nations Framework Convention on Climate Change (UNFCCC) explains that in 2009, developed country parties to the UNFCCC agreed to mobilise $100-billion annually by 2020 to support climate action in developing countries.

In 2015, under the Paris Agreement, “Parties agreed to extend this goal out to 2025 and to set a new finance goal, from a floor of USD 100 billion per year, for after 2025 taking into account the needs and priorities of developing countries.”

Whether this target was ever met is a topic of considerable debate. What is not under debate is that the amount is insufficient and should serve as a floor. Thus, the NCQG — or the debate about how much the countries responsible for most of the historical planet-altering emissions should send to developing countries — is due to be settled by world leaders on the western coast of the Caspian Sea next month.

Read more: (In)justice in the year of climate finance – at COP29 and G20 summit

On Monday, George said, “COP28 [last year’s conference] marked a pivotal moment in international climate diplomacy as we transitioned from negotiating the Paris Agreement to implementing its commitments.

“The incoming COP29 presidency has set ambitious priorities. A two-day summit at the start of the conference will bring together global leaders to raise awareness and accelerate climate action.

“Beyond the summit, the Presidency is finalising the new collective, quantified goal on finance, the NCQG, a matter of great importance for developing economies like ours.

“Moreover, there is a pressing need for large-scale financial support to enable developing economy nations to meet their climate targets and progress towards sustainable, low-carbon development.

“The current financing mechanisms have proved insufficient in scale and effectiveness, highlighting the urgency for a new financing model. COP29 presents an opportunity to advocate for innovative and improved financial frameworks that can mobilise substantial resources more efficiently.”

He explained that, for South Africa and other developing economies, “These resources are instrumental in our efforts to mitigate climate risks, enhance resilience and pursue inclusive, sustainable development.”

Read more: Climate finance key to just energy transition in developing countries — IEA chief

George said the NCQG was “very complicated” and that developed economies were meant to contribute $100-billion per annum. “They did not do that,” he said.

(Source: Statista)

“Even if it was $100-billion that was given, it’s certainly not enough. Our view is that at least $1.3-trillion is required.”

Echoing the minister’s sentiments, Pemy Gasela, the chief director for international climate change relations and reporting at the Department of Forestry, Fisheries and the Environment, said the NCQG should “reflect the financial support needed by the developing countries for their nationally determined contribution, their national adaptation plans, their low emission development plans and the national development frameworks.

“A successful COP outcome is one that reasserts the global solidarity to implement commitments and obligations already undertaken.

“COP must be a real ‘finance COP’ that delivers ambition and an outcome-based new Collective Quantified Goal that supports developing countries’ transition to low carbon climate resilient development.

“The quantum, which is what is going to be a bone of contestation [sic] of the mobilisation and provision for a new goal should be commensurate to the ambition of action.” DM