Universally agreed definition of Climate Finance hampering progress ahead of COP29

By Faridat Salifu

As the United Nations Climate Conference (COP29) approaches, climate experts and government officials from the Global South are rallying for a more ambitious climate finance goal, stressing that the upcoming New Collective Quantified Goal (NCQG) must mobilize trillions of dollars to meet the genuine needs of developing nations.

This is in light of the persistent underfunding by developed countries, which have previously delayed the delivery of the USD 100 billion annual finance commitment. Experts argue that the new goal to be set above the $100 billion floor for the post-2025 period should be far more robust.

According to an Independent High-Level Expert Group on Climate Finance, developing countries (excluding China) will require an increase in annual investments by USD 2.4 trillion by 2030 to adequately address the climate crisis.

The Bonn climate talks in June ended in deadlock, revealing deep-seated disagreements between rich and developing nations.

Developed countries, particularly those classified as ANNEX 1 under the UN Framework Convention on Climate Change (UNFCCC), pushed for an expansion of climate finance contributors to include emerging economies like China and India while narrowing the scope of beneficiaries to the least developed countries and small island states.

In a recent closed-door meeting, attended by government officials, economists, climate scientists, and activists, there was a resounding call for a unified stance from the Global South.

The participants, according to reports, underscored the importance of integrating climate action with broader development goals, particularly for countries like India. Indian officials stressed that finance flows from developed nations have been inadequate, despite the clear “polluter pays”principle enshrined in the UNFCCC.

One of the key points raised was the ongoing lack of a universally agreed definition of climate finance, which has hampered progress. “Without a clear definition, the quality and quantity of finance remain uncertain.

The Global South needs to push for a bottom-up approach, ensuring that finance is not just public but also climate-specific and additional,”one expert noted.

India’s recent submission to the UNFCCC highlighted that the NCQG should be aligned with the actual needs of developing countries, urging developed nations to commit at least $1 trillion per year, predominantly through grants and concessional finance.

The urgency of the situation was further emphasized by a climate scientist involved in India’s climate negotiations, who pointed out that despite contributing less than 4% of global greenhouse gas emissions, South Asia bears the brunt of climate impacts. “The question of whether the Global South can do more is absurd.

These countries are already diverting scarce resources to meet their climate commitments, despite their minimal contribution to the problem,”they said.

The meeting also touched on the increasingly severe impacts of climate change, particularly in tropical regions like India, where patterns of heavy rainfall and prolonged dry spells have become more pronounced.

Experts voiced concern that the ongoing dominance of the Global North in climate negotiations could stymie efforts to secure adequate finance transfers to the most vulnerable countries.

“We initially sought USD 400 billion for the pre-2025 period, but only secured USD 100 billion, which was delivered late. Now, with a Loss and Damage fund at just USD 700 million in pledges, the challenge is how to mobilize and deliver the necessary funds for those who need it most,”one diplomat remarked.

The consensus among experts is clear: the upcoming climate negotiations must yield a finance goal that truly reflects the scale of the challenge faced by developing nations, or risk perpetuating the inequities that have long hindered global climate action.