By Faridat Salifu
Reports say the 28th Conference of the Parties (COP28) held in the UAE has left a resounding echo of discontent, as observers and climate experts lament the persistent absence of robust and binding commitments on finance flows from developed to developing countries.
Dubbed as a “finance COP,” the event has sparked widespread disappointment over the perceived inadequacy of concrete measures to address the pressing financial needs for climate action.
Amid the release of the final COP28 text, concerns mount over the disparity between aspirational statements on finance and tangible, substantive actions.
According to analysts, the document emphasizes the criticality of scaling up grant-based, highly concessional finance and non-debt instruments to support developing nations, yet falls short of articulating definitive pathways to realize these aspirations.
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A stark illustration of the prevailing shortfall is reflected in the staggering financial requirement stated in the COP28 text, which underscores the need for $5.8 – $5.9 trillion for the pre-2030 period to fulfill developing countries’ climate action commitments.
They further noted that in contrast, the pledged $100 billion per year of finance flows, predominantly in the form of loans, has faltered, with 2021 witnessing a shortfall as developed countries mobilized $89.6 billion. The assertion of meeting the $100 billion target in 2022 lacks substantiated evidence, as the COP28 text anticipates further information on this purported progress.
Criticism of COP28’s inadequacy in instituting effective financial mechanisms reverberates through empathetic voices, such as Arunabha Ghosh, CEO of the Council on Energy, Environment and Water, who underscores the perilous implications for developing nations in meeting their Nationally Determined Contributions (NDCs). Ulka Kelkar, Executive Director at the World Resources Institute, India, voices concern over the exoneration of developed countries from bridging the finance gap, despite the widening adaptation finance deficit acknowledged in the COP28 text.
The conspicuous absence of a landmark outcome on finance has left Aarti Khosla, Director of Climate Trends, disenchanted with the rhetoric surrounding COP28 as a “finance COP.” This disillusionment resonates across various stakeholders, signaling a palpable lacuna in the pursuit of substantial financial commitments.
Furthermore, the stark disparity between funding pledges for the ‘Loss and Damage Fund’ and the colossal financial needs.
