Why Nations are not happy Over $300 Billion Climate Fund for Developing Nations?
At the last COP29 climate summit, member nations committed to using the New Collective Quantified Goal on Climate Finance (NCQG) framework to quadruple funding to the poor world to $300 billion annually by 2035. By 2035, the pact also set a target of at least $1 trillion annually in climate funding for developing nations. Many low income country leaders and environmentalists have criticized the agreed upon sum as being too small to actually make an impact even if the deal outlines a major increase in spending.
In response, a number of low and middle income country leaders criticized the recent financing announcement.
Chandni Raina, the Indian delegation’s representative at COP29 stated in the closing session of the summit that “I regret to say that this document is nothing more than an optical illusion. This, in our opinion, will not address the enormity of the challenge we all face. Therefore, we oppose the adoption of this document.”
Tina Stege, Marshall Islands climate envoy stated that “We are leaving with a small portion of the funding climate vulnerable countries urgently need. It isn’t nearly enough, but it’s a start.”
Cedric Schuster, the chair of the Alliance of Small Island States stated, “Our islands are sinking. How can you expect us to go back to the women, men and children of our countries with a poor deal?”
The funding decision has drawn criticism from some environmentalists who believe it is too little, too late. Widespread heatwaves, fatal storms, severe floods and powerful hurricanes have all occurred this year and also 2024 is predicted to be the warmest on record. As developing countries around the world struggle with the escalating effects of climate change, a number of climate organizations claim that they are already facing a serious financing shortage.
According to the Independent High Level Expert Group on Climate Finance (IHLEG) report that by 2030, all nations will need to finance $6.5 trillion annually to meet climate commitments with $1 trillion going to developing nations. Any deficit “will place added pressure on the years that follow creating a steeper and potentially more costly path to climate stability”.
The study is based on an IHLEG analysis from 2022 that estimated that by 2030, developing nations will probably require $2.4 trillion annually in climate funding. The authors proposed that the country’s own budgets could provide at least half of the cash resulting in a $1 trillion deficit.
According to the nations, scientists and environmentalists, the COP29 target of $1 trillion by 2035 might potentially have a major negative impact on developing countries progress because it is five years too late to provide the required funding.
