Clean Air Task Force’s Post

#COP29 will largely focus on a finance pledge. But the global climate community must go beyond pledges and produce credible plans to overcome barriers and produce significant investment in emerging and developing economies. To create credible plans, much greater focus needs to be placed on evaluating the scalability of proposed financing solutions and then working on additional strategies to fill the gaps needed to achieve both development and decarbonization targets. We posit that no matter what finance pledge is agreed on at COP29, world leaders and financiers will need to answer the following questions quickly:  1. Are current proposed solutions sufficient to achieve such conditions, and if not, what other options exist?   2. What development-compatible decarbonization pathways are most plausible for EMDEs?  3. How can investment be optimized to unlock growth along with decarbonization? 

🌍💰 Over the weekend, the UN climate talks in Baku ended with a new finance goal to support developing countries transition to a low-carbon economy and protect against climate disasters. Developed countries agreed a new $300 billion annual global climate finance target, although questions remain on whether it’s sufficient to support the needs of developing countries, especially the ones most vulnerable to climate change. The #Systemiq team focused on engaging with various stakeholders to facilitate meaningful discussions and collaborate on strategies aimed at advancing the global climate agenda at #COP29. Some of our highlights include:     🔹 Climate finance leadership: Our State of Delivery report for the Independent High-Level Expert Group (IHLEG) on progress of the climate finance agenda featured at a high-level roundtable hosted by the Executive Secretary with representatives from MDBs, governments and global alliances to support coordinated action to COP30.    🔹 Engagement with private sector on the New Collective Quantified Goal (NCQG): Supported the Glasgow Financial Alliance for Net Zero (GFANZ), the Blended Finance Taskforce, and the Global Capacity Building Coalition (GCBC) in publishing a letter to the COP29 Presidency calling for an ambitious climate finance goal. The letter, informed by consultations with the private sector and in partnership with the IHLEG, outlined how an ambitious NCQG could help to unlock the private finance needed to accelerate global climate action and was the result of multiple roundtables.   🔹 Skills for a green economy: In collaboration with COP29 High-Level Climate Champion Nigar Arpadai, GIZ, and WRI, we hosted a roundtable with high-level representatives from governments, businesses, and philanthropies to advance jobs and skills for a green and just economy. Participants strongly supported the need for a global initiative which will set an agenda for action and support countries and industries in putting people at the center of the transition.   🔹 Industrial transition in Brazil: We shared key insights from our Industrial Transition Accelerator (ITA) pilot programme in Brazil, engaging with ministers, companies and UNFCCC officials to push forward a sustainable industrial transformation. 🔹 Launch of the Barbados Investment Plan and Barbados debt for climate conversion: We were proud to join the Minister for Climate Resilience from Barbados to launch their flagship investment plan for prosperity and resilience and facilitate a discussion about the new Barbados debt for climate conversion – a first of its kind instrument unlocking up front investment in adaptation for water and sanitation. 🔹 Global Capacity Building Coalition (GCBC) Coalition: We supported the GCBC as it put capacity building on the map at COP as a critical – but under-invested – part of the toolkit to mobilise and improve the quality of climate finance in emerging markets and developing economies. Photo: Vugar Ibadov

With #COP29 under way, we spoke to IGC Research Director Tim Dobermann about the global green transition and the urgent need for #climatefinance ⤵️  A "cruel arithmetic" underlies the global green transition. Even if OECD countries stopped all emissions tomorrow, the rest of the world would still need to reduce emissions by 85% by 2100 to keep warming within 2°C (Michael Greenstone via #AEAJournals). The plummeting costs of renewables and batteries make the challenge feel less daunting, but falling costs don't guarantee investments. The financing gap remains immense and is central to the COP29 negotiations in Baku. A new climate finance goal is on the table: we may need $1.3 trillion a year by 2035, up from the $100 billion currently provided. For context, offshore oil and gas capital expenditure has exceeded $100 billion annually in recent years (Reuters). Private adaptation financing is woefully underprovided because it focuses on avoiding losses rather than delivering returns. The #adaptation finance gap ranges between $187-359 billion per year (The Guardian). Those who are richer suffer far less from the consequences of hotter days. Growing incomes allow for investments in technologies that reduce emissions and exposure to climate risks. The best defence against #climatechange is to grow wisely. Fortunately, emerging economies have a unique opportunity: most of their emissions are still to come. By adopting the latest #energy innovations, they can achieve #sustainablegrowth with reduced environmental consequences. High capital costs and limited capacities hinder the uptake of clean technologies in low- and middle-income countries. This is where international finance and donor support become crucial. Often, private investments can lead the way. Bridging the climate finance gap is essential to transform the "cruel arithmetic" of climate change into a solvable challenge. The time to act is now—before the window for meaningful action closes. Read Tim's full blog ⬇️

🌍 As 50,000+ government officials, policymakers, investors, and non-state actors head to Baku for #COP29, all eyes are on a potential new climate finance goal that could define this event as the "#FinanceCOP." The New Collective Quantified Goal (#NCQG) on climate finance aims to accelerate climate action in developing countries, replacing the previous USD100 billion annual target, which was delayed in delivery by developed nations. Adding momentum, the COP29 Presidency has introduced the Climate Finance Action Fund (#CFAF), seeking voluntary contributions from #fossilfuel producers to support #climate projects in developing nations. Acknowledging the private sector's role within the NCQG could signal investors towards #climateambition post-2025 and strengthen commitments to bridging finance gaps. With studies indicating a need for USD2.4 trillion annually in #climatefinance for developing countries by 2030, and USD1 trillion in #cleanenergy investments alone, COP29’s policy outcomes could be pivotal for climate finance in this decisive decade. #COP29 #ClimateFinance #SustainableInvestment

As COP29 approaches, this article points out a significant agenda item is establishing a new collective quantified goal for climate finance to better support vulnerable nations. Access to effective, scalable climate finance remains a challenge for many, especially in developing regions. ZERO13 is dedicated to facilitating sustainable financial solutions that align with these goals🌱. 🚀Our team, led by Hirander Misra (Chairman & CEO), alongside Emmanuel Devedeux (Chief Business Officer) and Lincoln Teo (Board Advisor), is actively engaging with global stakeholders at COP29 to explore innovative pathways to improve access to climate finance. At ZERO13, we believe in actionable support that bridges finance and climate resilience. Read the full article to learn more on this: https://lnkd.in/dFXD9kUt #ZERO13 #ClimateFinance #Sustainability #COP29 #ParisAgreement #DigitalFinance #GreenEconomy #CarbonMarkets #NetZero #ResilientFinance #ClimateLeadership #SustainableDevelopment #ClimateResilience Hirander Misra

London’s role as a global hub for sustainable finance shines as #COP29 highlights transition finance needs. As nations set ambitious climate finance goals, all eyes are on private sector funding to close the gap toward #NetZero.

In my interview with China Daily on COP29 Azerbaijan, I emphasized the importance of the global carbon market framework initially endorsed during COP29. However, I stressed that this needs to be complemented by a global carbon taxation scheme to prevent capital outflows to lower-tax regions. Additionally, I highlighted how Asian economies, with their dynamic growth and innovative potential, can leverage climate finance to accelerate the transition toward achieving net-zero emissions goals. #COP29 #climatefinance #carbonemission #netzero #asia

🌍 As the negotiations on the New Collective Quantified Goal (NCQG) draw to a close today in Baku, it's really not clear how COP29 will manage to agree the ambitious, bold new climate finance deal that is needed. After four days of sometimes fractious negotiations, there are still massive gaps between developed and developing countries. According to the Arab Group, developed countries provided no commitment, quantum, or accountability. The cautious tone from developed countries is at odds with those speaking of the desperate needs of developing countries. We held a webinar last week, where Dr Christopher Bartlett of Vanuatu, spoke so clearly about the impact of climate change and the importance of finance - “Climate finance truly is a lifeline for SIDS like Vanuatu, particularly if the impacts are worsening daily. We spend about 35% of our GDP annually in responding to climate disasters (including what seems to us like a never-ending stream of category five cyclones, prolonged droughts, and out of season rainfall). These are all causing unbelievable economic and non-economic losses and damages that are well beyond our adaptation limits, and are dwarfing our national budget capacities to respond”. The process now moves to the political level – Ministers are meeting informally in a few weeks in NY, and formally in October in Baku. They should take advice from our latest report, which lays out Five Tests for a Robust NCQG 1: Adopt a fair share approach and comply with the principle of CBDR-RC as set out under the UNFCCC and in the Paris Agreement 2: Be ambitious and based on evolving needs of developing countries 3: Be predominantly made up of public grant-based finance 4: Contain new and additional finance, and result from better use of public resources 5: Be accessible and support gender equality and human rights They will also find inspiration in ODI’s latest report, published with the Alliance, that provides more detailed workings on a burden-sharing mechanism and expanding the contributor base, amongst other things: A Fair Share of Climate Finance? The Collective Aspects of the NCQG 🚨 We need urgent, equitable action. COP29 must deliver a climate finance agreement that matches the scale of the crisis. Anything less is unacceptable. #ClimateAction #COP29 #NCQG #ClimateJustice #ClimateFinance #ZurichClimateResilienceAlliance #ODI #ActNow https://lnkd.in/etxij-aC https://lnkd.in/etpZUHmW https://lnkd.in/eYsd3Z8U

BLOG | #ClimateFinance The realm of international climate finance, particularly as it evolves during #COP29, remains riddled with systemic challenges, stuck making poor progress financing climate transitions since #COP21. Despite ambitious goals set under the #ParisAgreement and beyond, the mechanisms to mobilize and allocate funds equitably and effectively are fraught with mismanagement, inconsistencies, and a lack of transparency. This issue is critical as developing nations, often bearing the brunt of climate impacts, rely on financial support to adapt, mitigate risks, and transition to low-carbon economies. This #blog article explores reasons underpinning the inefficiencies of international climate finance, dividing the discussion into key thematic sections: systemic shortcomings, #accountability challenges, and potential solutions for reform 👇 #ClimateChange #JustTransition #StakeholderEngagement

#COP29 starts next week, and the Climate Policy Initiative argue that annual finance flows to tackle #climate change are at least $8 trillion short of where they need to be for the next 30 years. That gap is especially acute in the least developed countries and for #adaptation.   It means that one of the spotlights next week must be on how policymakers can better incentivise private finance to narrow the gap. This short blog from our CEO Rory Sullivan offers some thoughts on how to design policy to explicitly address this challenge and overcome the barriers to investment.   https://lnkd.in/ehG2eVaJ   Nicky Amos, Robert Black, Gemma James, SDG Action. Institutional Investors Group on Climate Change (IIGCC), #GreenerTogether