Rich nations' bilateral loan proposals met with resistance by the Philippines and Malaysia, as both nations instead advocated for climate financing.
As the climate talks at COP29 in Baku approach a close, a consensus on a climate finance deal for developing economies remains elusive. The negotiations, which resumed until late Thursday evening, are focused on securing more than a trillion dollars annually by 2030.
Countries responsible for very high cumulative greenhouse gas emissions have agreed to scale their climate finance contributions to 300 billion USD annually by 2035. They have also called on the private sector to contribute an additional 1.3 trillion USD per year. However, no specific countries opposing bilateral agreements are mentioned in the available information.
Some civil society groups are expressing concerns about a climate finance deal that could potentially lock poor nations into debt for years to come. Ian Rivera, national coordinator of the Philippine Movement for Climate Justice, reported this information. If the finance is distributed bilaterally, the funds will go directly to individual countries, not to the bloc as a whole, Rivera added.
The Philippines and Malaysia are seeking funding from the new collective quantified goal (NCQG) through public financing by multilaterals, according to civil society organizations. Lidy Nacpil, coordinator of the Asian Peoples' Movement on Debt and Development (APMDD), reported direct communications with Philippine and Malaysian official delegations. Other Asian governments, including Bangladesh and Nepal, are also maintaining their stand against bilateral agreements.
The NCQG is meant to replace a US$100 billion annual funding target by 2020. However, the latest text of the NCQG does not include decisions on which countries pay, the amount they should pay, and how much should be dispersed as grants instead of loans. Nacpil stated that they would rather have no climate finance deal than one that results in a weak goal, and instead continue negotiations in COP30 for a better deal.
The energy transition mechanism (ETM) is a separate fund aimed at buying coal power plants to shut them down early and replace them with renewable energy alternatives. The climate finance will be used to transform the energy system and address loss and damage, according to Rivera. The ETM is a part of the climate finance that will be used for this purpose.
However, the text also includes scant references to transitioning away from fossil fuels. Some least developed countries and small island states are breaking away from the Group of 77 (G77) and China due to doubts about receiving the trillions needed to address global warming.
Civil society groups are advocating for a better reality in the negotiations, not settling for a weak goal. Nacpil's stance is a reflection of this sentiment, as she prefers no deal over one that does not adequately address the pressing needs of developing economies. The negotiations are expected to continue in the coming days as countries strive to reach a consensus on a climate finance deal that will help mitigate the impacts of climate change and promote a sustainable future for all.
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