To add the climate objectives global are necessary 6,500 billion dollars per year on average until 2030. Of this figure, 1,300 billion are for emerging and developing countries (EMDCs) other than China. This is the picture that emerges from the third report of the “Group of high-level independent experts on climate finance”, presented at the Cop29 in Baku. But negotiations on aid to vulnerable countries against climate change are still at sea. It is estimated, however, that the avoidable economic losses by 2100, realizing a global warming scenario of +1.5°C, they will still be five times greater of the climate finance needed to achieve this goal by 2050.
Parties still divided on climate finance
On the estimated figure of 1,300 billion per year to be paid to developing countries (excluding China), UN countries cannot agree on how much money to pay, who should pay it, under what conditions. On the table is the renewal of the 100 billion dollar per year aid fund for vulnerable countries, provided for by the Paris Agreement and expiring in 2025. The first problem is deciding the amount. The Group of High-Level Independent Experts on Climate Finance, a commission that has been assisting the COPs since 2021, calculates that the world needs 6,500 billion per year for climate finance. Of this sum, 1,300 billion per year must go to developing countries (excluding China). The G77, the group that includes developing countries (excluding China) immediately raised this figure on the negotiating table in Baku. The donors made a wall. In their opinion, it is already a feat to raise 100 billion a year. Which in fact, they only reached in 2022. But the contrasts don’t end there.
We also need to clarify what is meant by “financing”. Developing countries want them to be “grant”, i.e. non-repayable public financeor at most “concessional finance”, i.e. loans at subsidized rates. So far, market rate loans have also been counted in the 100 billion, which can hardly be considered aid. And then, you have to understand what they are intended for this money. At the emissions mitigation (which is of interest to rich countries that sell renewable technologies) or toadaptation to the changed climate (what does the poor countries that suffer its disastrous effects care about)? Developed states also want to know where their money is going, and they ask severe mechanisms of selection of projects and control of their implementation. From Baku, the main multilateral development banks have made it known that they can reach 120 billion a year in climate financing for developing countries, and mobilize another 65 from the private sector.
The intervention of the European Commission negotiator
“On the main theme of Cop29, the new climate finance objective, the NCQG, the parties are still significantly divided. On the quantum (the sum to be allocated to aid, ed.), whether it should come from public funds or even from private individualson who should contribute. It is difficult to say now where the fall point will be. We hope that next week, when the ministers return, the spirit of compromise that existed at pre-COP will emerge,” said European Commission negotiator at COP29 Jacob Werksman, at a press conference in Baku. On the other important topic under discussion at the conference, the international carbon market required by Article 6 of the Paris Agreement, Werksman said that “they have been obtained some progress. An agreement was reached on the transparency and accountability of the mechanism. Now let’s move on. We hope to leave a few points for ministers to decide.”
The role of Italy
”Despite the wealth of resources, currently 600 million people, 43% of the total population and mainly in the sub-Saharan area, does not have access to electricity, as the international energy agency IEA tells us – the Undersecretary for the Environment, Claudio Barbaro, explained in his speech at Cop29 -. Italy has the opportunity to contribute significantly to sustainable development and Africa’s energy transition. A decisive role in this sense is played by the international environmental cooperation policy of Mase and the Italian Climate Fundin synergy with the Foreign Ministry. The Fund provides one allocation of over 4 billion eurosof which 75% to be allocated to Africa and the Middle East – North Africa area. It is one of the financial instruments of Mattei plana very flexible tool both with respect to the audience of beneficiaries and with respect to the methods of intervention. Since November 2023, the Fund has been fully operational and has approved the first 8 interventions for an amount of 552.7 million euros, of which 91% destined for Africa”.
