COP29 President Urges Political Direction to Settle Climate Finance Disputes

The president of this year's UN climate summit emphasised on Wednesday the need for political guidance to resolve disputes over a new financial target to aid developing countries' climate actions post-2025. Climate finance will be a focal point at the UN climate conference in Baku, Azerbaijan, where nations must agree on the New Collective Quantified Goal (NCQG) by 2025.

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At the 2009 UN climate conference in Copenhagen, wealthy nations responsible for significant emissions pledged USD 100 billion annually from 2020 to assist developing countries in mitigating and adapting to climate impacts. However, delays in meeting this goal have strained trust between developed and developing nations, causing ongoing friction during annual climate talks.

Political Direction Needed for Consensus

Achieving consensus on the NCQG will be challenging due to the lack of progress at the mid-year UN climate talks in Bonn, Germany. "There are disagreements on key elements that will require political direction and we must focus high-level discussions on these points," COP29 President-Designate Mukhtar Babayev stated in a letter to nearly 200 countries under the United Nations Framework Convention on Climate Change (UNFCCC).

Babayev highlighted that climate finance has been one of the most difficult topics in negotiations and broader climate diplomacy. He noted that these politically complex issues cannot be resolved by negotiators alone. Babayev stressed that an agreement on a fair and ambitious NCQG, considering the needs and priorities of developing countries, is a top priority for the Azeri presidency.

Urgent Call for Enhanced Climate Action

Babayev's letter coincided with a call from Simon Steill, head of the UN climate change body, urging all countries to prioritise climate action in their cabinet agendas. Steill, visiting Carriacou in Grenada after Hurricane Beryl, emphasised that G20 countries, responsible for 80% of greenhouse gas emissions, must lead with transformative national climate plans due early next year.

Steill called for intensified efforts to prevent climate disasters. "Just in the past month, we have seen heatwaves with a four-figure death toll in India. Over a thousand pilgrims died on their Haj to Mecca this year. Two years ago, one-third of Pakistan was under water, over a thousand people lost their lives, millions were displaced, and 3.5 million children were out of school," Steill said.

Economic Impact of Climate Change

Citing a recent report by Germany's Potsdam Institute for Climate Impact Research, Steill warned that climate impacts could cost the global economy around USD 38 trillion annually by 2050. He noted that climate impacts have reduced global food production and increased food prices and other living costs.

If governments do not take action, every economy and all eight billion people will face continuous severe consequences. "If governments do not step up, every economy and all eight billion people will face this blunt-force trauma continuously," Steill warned.

Babayev urged all countries to go the extra mile together to achieve this historic milestone. He added that efforts on climate finance should represent progress beyond previous attempts. "We must all go the extra mile together to deliver this historic milestone," he said.

The upcoming UN climate conference in Baku is crucial as it marks the deadline for agreeing on the NCQG. The new financial target aims to support developing countries' climate actions starting from 2025. The outcome of these discussions will significantly impact global efforts to combat climate change.