By Aliu Akoshile
Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), Simon Stiell has tasked governments around the world to agree on a new goal for international climate finance, saying ” trillions more are needed.”
He spoke on Thursday at a high octane virtual event hosted by the Washington-based Brookings Institution, ahead of the COP29 Climate Conference in Baku, Azerbaijan, in November.
Expantiating on the required actions to get finance flowing to every sector of every economy, Mr. Stiell disclosed that over a trillion dollars was invested globally in climate action last year, up from a few hundred billion dollars a decade earlier.
He said although the developed countries mobilised more than $100 billion in climate finance to developing countries in 2022, “relative to where we need to be, this is nowhere near enough.”
Justifting the need for enhanced funding, the climate chief noted that the world has witnessed devastating impacts of climate change costing hundreds of billions of dollars to countries, rich and poor.
He lamented that many countries have suffered from Hurricane Milton and Helene’s devastating damage. Even those who’ve avoided direct damages have been hit hard by inflation as supply chains are blocked and broken. ”
Mr. Stiell argued that the world can only prevent the climate crisis from decimating all economies, including the largest, “if every nation has the means to slash greenhouse gas pollution and boost climate resilience.”
He said all leaders attending the COP29 in Baku must agree on a new goal for international climate finance that truly responds to the needs of developing countries.
“COP29 must be the stand-and-deliver COP, recognising that climate finance is a core business to save the global economy and billions of lives and livelihoods from rampaging climate impacts,” he noted.
Simon Stiell acknowledged the additional concessional lending for climate, announced recently by the World Bank, noting also that the IMF is looking at ways to incorporate climate action and risks right across their work.
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“This is good news”, he said, “but incremental increases won’t lead to an exponential surge of investment and green growth as the world has a need for speed, and without a much larger scale, all economies will fail.”
The UN climate chief lamented the precarious economic conditions of so many countries that are facing debt crises, which amount to fiscal straight-jackets, making it near-impossible for them to invest in climate action
He insisted that the UN must see further signals that the World Bank and IMF are committed to ensuring developing countries have funds and fiscal space for climate action and investment, not devastating debts and sky-high costs of capital.
Mr. Stiell, who advocated for debt relief, said the introduction of more climate-related debt clauses is a good start, adding that we must make climate cash count, wherever possible leveraging more private finance and sending signals to financial markets that green is where the gains are.”
He sounded a note of warning about the business of COP29 saying, “we are not going there to renegotiate the Paris Agreement” and that participant must put in place mechanisms to track and ensure that promised funds are delivered.
He emphasised the need to rapidly ramp up funding for adaptation and get international carbon markets working for everyone.
The UN climate chief said the targets for Baku summit includes to protect the progress made at COP28, convert the pledges in the UAE Consensus – to triple renewable energy, double energy efficiency, boost adaptation and transition away from fossil fuels – into real-world, real-economy results.”
He addressed the lingering issue of Loss and Damage Fund, saying it must be working fully so as to dispersing money to those who need it most.
Simon Stiell implored world leaders to choose the path that focuses on solutions, and ensuring the massive benefits of bolder climate action, stronger growth, more jobs, better health, secure and affordable clean energy, are within all nations’ reach.
The virtual event also drew other participants, including Brookings Institution’s Vice President for Global Economy and Development Brahima Coulibaly, Brookings Senior Fellow Amar Bhattacharya, and non-resident Senior Fellow Vera Songwe.
A true champion for formulating creative approaches for collective global response to the climate crisis, Mr. Stiell served as senior minister in the Government of Grenada from 2013 through June 2022, holding the portfolio of Minister for Climate Resilience and the Environment for five years.
He previously served as Minister for Education and Human Resource Development, Minister of State with responsibility for human resource development and the environment and as a Parliamentary Secretary within the Ministry of Agriculture, Lands, Forestry and Fisheries. He also served as a member of Grenada’s Upper House of Parliament, the Senate, where he served as Leader of Government Business.
