A new draft of the COP29 climate finance agreement released on Thursday is more streamlined but still lacks the numbers and detail that developing countries like SA are eagerly waiting for.
The draft decision text, officially referred to as the new collective quantified goal (NCQG) released on the penultimate day of COP29 in Baku, Azerbaijan, is crucial for turning the promises of the Paris Agreement into tangible financial support, especially for developing economies mostly at risk from climate change.
“The text is narrowing, but so is the time to reach a final agreement. Negotiators and ministers need to pick up the pace, ramp up their diplomacy, and drive consensus around an ambitious climate finance deal,” said Stephen Cornelius, the WWF deputy global climate and energy lead, highlighting the urgency of finalising the agreement.
“The lack of a finance target in this draft is a worrying sign that the most challenging decisions are being left to the last minute,” he said.
Ambassador Ali Mohamed from the African group of negotiators welcomed the streamlined text. “These 10 pages contain many of the principled positions from the African group and other developing countries, though [it] continues to include many of the untenable positions of the developed countries as options in the text.”
The elephant in the room, however, remained the lack of a quantum proposal. “The text does not specify numerical figures for the proposed mobilisation goal or the provision element, despite a common position from the G77 and China on a $1.3-trillion annual mobilisation goal,” Mohamed said.
“This is the reason we are here — identifying a quantified goal — but we are no closer, and we need the developed countries to urgently engage on this matter.”
Other issues flagged by climate action leaders and organisations include insufficient emphasis on grants and the lack of clear allocations for adaptation finance.
Joseph Sikulu, Pacific director of environment protection group 350.org, highlighted the absence of clear grant-based core funding. “Nothing less than $1-trillion in grants per year will be enough,” he said.
This was underscored by SA’s minister of forestry, fisheries and environment, Dion George, who previously told Business Day: “We [SA] do not have fiscal space for loans; therefore, we need grant funds or very highly concessional funds.”
“Developing countries should push to ensure that public grants-based funding is prioritised by developed countries and that there is robust architecture for monitoring and accountability in the delivery of these public funds,” said Tasneem Essop, executive director of Climate Action Network International (CANI).
“The latest draft NCQG text remains glaringly incomplete without the concrete numbers for the finance goal — the very cornerstone of any agreement at COP29 and the unwavering demand of developing countries throughout this summit.”
Sanjay Vashist, director of Climate Action Network South Asia, expressed concern over the text’s attempt to erode references to historical polluters’ obligations under the Paris Agreement, which could undermine adaptation funding. He described it as “an attempt to prepare the ground for a private sector-led global finance goal with minimal accountability on developed countries.”
The NCQG draft also failed to address voluntary contributions from wealthier non-Annex I countries, such as China and Saudi Arabia. In the context of climate negotiations, wealthier non-Annex I countries are often encouraged to make voluntary financial contributions to global climate initiatives, though they are not obliged to do so.
The draft text also lacked a clear review date or plan, failed to address debt in vulnerable countries, and did not establish a sub-goal for loss and damage.
While the draft NCQG represents a step forward in recognising the financial needs of developing countries, it leaves critical gaps that are crucial for developing nations.
“Developed countries knew they were expected to arrive in Baku ready to agree on a meaningful climate finance goal,” Essop said.
“Instead, they continue to play games with the lives of people on the front lines of climate disaster, manipulating and undermining these critical negotiations. They need to put the numbers on the table now, or we run the risk of not getting an outcome.”
• Business Day’s COP29 coverage has been made possible by the Meliore Foundation, which has covered flight and accommodation costs
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