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Climate Finance: getting our fair share now
COP29 concluded with an agreement on climate finance, committing to triple climate finance for developing nations to USD 300 billion by 2035 and mobilize USD 1.3 trillion annually from public, private and other innovative sources. The NCQG negotiations went 33 hours in over time on the last day, showing how intensely contested the climate finance agenda items at COP29 have been. Although, COP29 concluded with an increased climate finance commitment, compared to 2029 levels, the stakes will be high in the coming years to achieve the target and ensure climate finance access and mobilisation is given priority.
After intense negotiations and high expectations, COP29 has concluded with compromise on climate financing. Climate finance is the enabler for climate action in SIDS and LDCs. COP29 was termed the Finance COP and expectations were high leading into the Climate Summit. With targeted climate finance events staged in the lead up to COP29, the pressure was on the Azerbaijan Presidency to deliver much needed finance for achieving the adaptation and mitigation priorities in SIDS and LDCs.
At COP29, SIDS called for the protection of their special circumstances, identified in the Paris Agreement. Article 2.1 and 2.2 remains the heart of the Paris Agreement and calls on developed countries to act urgently to hold global temperature increase to below 1.5C and making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.
While most countries worldwide strive to significantly reduce their carbon footprint, the narrative is different in the Pacific region. Here, the focus is on coping with increasing climate-related disasters and achieving economic development with minimal carbon emissions. The urgency of climate change is not just a concept, it's a palpable reality. The unique challenges faced by Pacific Island Countries and Territories (PICTs) make it difficult to access necessary finance and take action, amplifying the need for immediate, effective and creative solutions.
COP29 and Beyond: Overcoming barriers to climate finance access
Despite the urgent need for climate action, PICTs often face institutional and technical challenges that prevent them from accessing finance and implementing projects. For example, many PICTs lack the human resources capabilities to develop and implement climate change projects, relying instead on external experts and specialists.
The dispersed geography of PICTs poses additional challenges. Collecting data is difficult and expensive due to high travel costs. Similarly, the remoteness of these islands means that logistics for project implementation are more expensive, resulting in higher costs for the same benefits compared to other countries.
"Under our accreditation to the Green Climate Fund and Adaptation Fund, SPC has been actively supporting Pacific Island Countries and Territories in accessing vital climate finance. Since 2019, we've helped countries to have 5 full-sized projects approved for adaptation and resilience in the Pacific. Without the accreditation of regional organisations like SPC and SPREP to these multilateral funds, it would have been nearly impossible for PICTs to secure the finances they need to address national climate change priorities," says Dirk Snyman, Climate Finance Coordinator at SPC.
Supporting climate resilience in the region
To address these challenges, increasing access to climate finance for PICTs is essential. This can be achieved by providing technical assistance to develop project proposals and enhancing the capacity of local institutions to manage and implement projects.
The Green Climate Fund (GCF) is committed to financing crucial climate initiatives across the Pacific, enabling nations to build resilience against climate change. Key priorities include efforts to improve climate-resilient health systems, support sustainable agricultural practices, and enhance water security. For instance, the GCF is backing a USD 18.8 million project in the Federated States of Micronesia and a USD 28.3 million initiative in Vanuatu. Additionally, the GCF promotes locally-led adaptation efforts and renewable energy projects, empowering communities to confront climate challenges while fostering sustainable development throughout the region.
The Adaptation Fund (AF) is also a key source of finance for adaptation activities in Pacific Small Island Developing States (SIDS). To date, five Pacific SIDS have accessed nine projects from the AF. Recently, the allocation was increased from USD 10 million to USD 20 million per country, providing more opportunities for Pacific SIDS to secure climate finance. At SPC, three projects are being implemented with AF funding, one of which aims to increase the climate resilience of vulnerable coastal communities through adopting nature-based coastal protection in Fiji.
"The impact of climate change is increasingly evident across Fiji and the need to finance innovative efforts to build resilience to climate change impacts is essential. Investing in solutions supported by nature provides sustainable and cost-effective approaches to resilience and enables us to meet the scale of impacts Fiji currently faces. Resources from the Adaptation Fund are crucial in safeguarding Fiji's most vulnerable communities and has the added benefit of providing valuable environmental, social, and economic benefits to its beneficiaries." said Mr Filimone Ralogaivau, previous Director of Climate Change for Fiji.
COP29 delivers on climate finance reform
The UN Climate Change Conference (COP29) concluded today in Baku, Azerbaijan, with an agreement on climate finance. The framework aims to protect vulnerable populations and economies from climate disasters while ensuring all countries can benefit from the global shift to clean energy. COP29 delivered a historic commitment to:
-Triple finance to developing countries, from the previous goal of USD 100 billion annually, to USD 300 billion annually by 2035.
-Secure efforts of all actors to work together to scale up finance to developing countries, from public and private sources to the amount of USD 1.3 trillion per year by 2035.
Known formally as the New Collective Quantified Goal on Climate Finance (NCQG), it was agreed after two weeks of intensive negotiations and three years of the ad-hoc work programme, in a process that requires all nations to unanimously agree on every word of the agreement.
Wayne King, Regional Climate Finance Coordinator and Director of Climate Change for the Cook Islands, stressed the critical importance of this achievement: "This new goal must address our urgent need for Pacific nations to access and secure essential support to meet our obligations under the Paris Agreement. For us, it’s a matter of survival and development."
He added, "In a time of increasing climate impacts across the region, it is vital that resources are mobilised that reflect not just our unique vulnerabilities of our region, but also address the challenges and constraints we as a people suffer, such as fragmented and small economies, migratory labour patterns and constraints we recognise, that other regions do not. Addressing these under the new goal will build the resilience we all seek, under the Paris Agreement framework."
Contact
Maeva Tesan, Information, Communications and Knowledge Management Officer, Climate Change and Sustainability (CCES), Pacific Community (SPC) | [email protected]
