N4C COP29 Daily Brief (14 Nov): The Question of Climate Finance

For those here for the drama, there was plenty of that yesterday. France's top climate official has boycotted COP after Azerbaijan's president accused the country of "crimes" in its overseas territories. Argentina’s negotiating team were ordered home by the country's far-right president. And UN Secretary General Antonio Guterres, as usual, didn't mince his words: "There is no time to lose on climate finance, the world must pay up, or humanity will pay the price."

For those here for the nuts and bolts, the current state of negotiations has been described as "slow" and "timid," with disagreement among Parties still prevailing on a number of issues, not least of which on finance (see below). This will need to change, and quickly, for any chance of a successful outcome in Baku. 

On the nature side of things, yesterday saw a high-level roundtable on sustaining and enhancing nature finance ambition from CBD COP16 to COP30. No formal announcements were made, but the importance of scaling up finance for nature and ensuring direct access for IPLCs was emphasized. Today, we're gearing up for another high-level event to highlight efforts to urgently scale up financing for forest protection and climate action through results-based payments and high integrity carbon markets.

And finally, for those here looking for sustenance at the end of a long day, I'll wrap things up with a recommendation to visit Galateya in the Old City. Wonderful food in a beautiful setting.

Lucy Almond

Chair, Nature4Climate

SPOTLIGHT: THE QUESTION OF CLIMATE FINANCE

Something you may be hearing a lot about during COP29 is setting a ‘new collective quantified goal’ (NCQG) on climate finance. Under the Paris Agreement, developed nations are required to provide climate finance to developing nations to invest in reducing emissions and to support climate resilience projects. Over the past decade, developed nations have fallen short of providing these promised funds and, at COP29, negotiators are working to develop an agreement on a required new target dollar figure for developed countries to distribute to developing nations. 

This will likely be one of, if not, the most important issues debated at this COP with major implications on climate finance for years to come, as well as next year's NDCs. A draft text on the NCQG was circulated yesterday, but for many observers the current draft left much to be desired. WWF's Global Climate and Energy Policy Lead Fernanda Carvalho summed up the view of many who want to see a NCQG that meets demands from developing nations to set a substantial finance target of USD 1 trillion or more with a clear way to free up fiscal space for the needed funds:

“This swollen draft text puts everything back on the table - both good and bad options. After three years of preliminary talks, we had hoped to see a more streamlined text at this point, so this is frustrating. The nine page draft circulated ahead of the COP has expanded to 34 pages. The good side is that a few stronger options were included. Now we need to see countries quickly building consensus over the next few days and streamline the text towards a final agreement that will deliver the scale of finance needed.”

There are multiple ways negotiators can develop the NCQG, several competing schools of thought on how the NCQG should be structured, who should pay and receive funds, and how to distribute the funds. The crux of much of the debate is if the NCQG should be "single layered" (public money/ODA), a view held by many developing nations, or "multi-layered" (public money + financing from other sources such as multilateral lending institutions, private investors, carbon markets, insurance, etc.), a view held by many developed countries. We encourage you to take a look at Carbon Brief's thorough explainer on the subject. A few key points in yesterday's draft relevant to the nature community are below:

• Recognizes the crucial synergies between finance for climate, biodiversity, land degradation and the sustainable development goals.
• Explicitly recognizes the "contributions of Indigenous Peoples and of local communities in nature stewardship and climate leadership".
• Mentions helping countries meet adaptation goals and mentions ecosystems.

DAY 3 ANNOUNCEMENTS AND UPDATES

• Multilateral development banks (MDBs) issued a joint statement at COP29 that shares their estimate that by 2030, their annual collective climate financing for low- and middle-income countries will reach USD 120 billion, including USD 42 billion for adaptation, and MDBs aim to mobilize USD 65 billion from the private sector.
• The Inter-American Development Bank (IDB) announces it will scale climate investments in Latin America and the Caribbean USD 11.3 billion annually by 2030. 
• Singapore's Economic Development Board (EDB) announces pledges of USD 500 million to accelerate capital flows.
• Ivory Coast is setting up a USD 500 million green-financing facility to catalyze funding to combat climate change backed by the African Development Bank and the Climate Investment Funds.

KEY DAY 4 EVENTS

Overcoming barriers in access to funds at the frontline of climate crisis to accelerate climate financing for adaptation in Agriculture and Nature in Africa

Time: 11:00 – 12:00 AZTLocation: Food & Agriculture Pavilion, Blue Zone Host: CGIAR, FAO, Tree Aid 

Scaling Forest Carbon Finance for People, Planet, and Nature

Time: 13:00 – 14:30 AZTLocation: DRC pavilion H14, Blue Zone Host: Forest & Climate Leaders’ Partnership

📅 Nature4Climate has developed a COP29 Nature-Related Event Tracker to make it easier to stay updated on where and when more than 250 nature-focused sessions will take place. Check out the tracker, and if you have events to add, please send details to comms@climateadvisers.org.

💡MORE:

Brazil's New Climate Ambitions

The government of Brazil announced a new climate goal at COP29, targeting a 59% – 67% reduction in economy-wide greenhouse gas (GHG) emissions by 2035 (compared to 2005 emission levels). In absolute terms, this target translates to a reduction of 850 million to 1.05 billion tons of carbon dioxide equivalent by 2035. According to Nature4Climate's naturebase platform data, Brazil could meet half its NDC targets through natural climate solutions.

To help put this in context, following is a statement by Karen Silverwood-Cope, Climate Director, @WRI Brasil:

“Brazil's new climate target shows that it is ready to tackle the climate crisis head-on, as long as the country strives for the highest end of its emission reduction target. Cutting emissions by 67% by 2035 could put Brazil on a pathway to reach net-zero by 2050. Getting there requires bold domestic policies to halt deforestation and promote restoration, decarbonize its energy sector and foster green industry. Embarking on this journey to a new climate economy will create jobs, boost economic growth and avoid more dangerous climate impacts. The government must also ensure these actions promote social justice and build resilient communities.

“On the other hand, if Brazil only meets the low end of its emissions reduction target, the country will veer well off track from delivering on its climate goals. As host for next year's climate negotiations, President Lula has a responsibility to lead by example and aim high.

“Brazil’s NDC relies heavily on its forests to meet its targets, focusing on combating deforestation while implementing the plan to restore 12 million hectares of native vegetation by 2030. Curbing deforestation and restoring forests at scale is absolutely crucial. Also, to position itself as a climate leader Brazil must make progress in the energy and agriculture sectors, which are projected to be major sources of pollution in the years to come.” 

The Troika of Indigenous Peoples 

Indigenous leaders from Brazil, Australia, and the Pacific launched 'The Troika of Indigenous Peoples,' an innovative initiative to go beyond the '1.5°C Mission,' ensuring the implementation of the Paris Agreement based on their vision, self-determination and territoriality. The group will facilitate the coordination of Indigenous Peoples and their priorities across COP29, COP30, and COP31, to ensure Indigenous voices are prominent in climate negotiations.Speaking at the event Brazilian Minister of Indigenous Peoples Sonia Guajajara called for increased participation of Indigenous Peoples at COP30 in Belém. Part of this agenda includes working with the UNFCCC to increase the number of Blue Zone delegate badges for Indigenous Peoples groups and creating ways for Indigenous Peoples to engage directly in  UNFCCC negotiations. The troika further hopes to involve Indigenous Peoples in the Green Zone and other external spaces. 

🔴 WATCH THE RECORDING

🗨️ OVERHEARD AT COP

A new section of the COP29 Daily Brief, 'Overheard at COP' is a space where we will share insights, analysis and COP gossip from world leaders, delegates and anonymous participants during this year's climate summit. 

Nature4Climate is on the ground interviewing nature champions to get their perspectives on COP29 and how nature is showing up in Baku. In our first video we join Manuel Pulgar-Vidal of WWF International sharing his views on private finance driving climate action at COP29.

"In Baku, we have just over 140 indigenous representatives from around the world, but this is still very few. For Belém, at COP30, we aim to have the largest and best Indigenous participation in the history of the Climate COP. To achieve this, we are working to create an exclusive badge category for Indigenous people in the Blue Zone, allowing them to participate in negotiations as a rightful and legitimate voice. Currently, badges are distributed exclusively to NGOs, government representatives, and companies, but we want Indigenous representatives to have a unique and permanent category at all COPs from now on" Sonia Guajajara, Minister of Indigenous Peoples of Brazil.

"A new metric is needed beyond GDP because GDP goes up when we do unsustainable things like overfishing, deforestation, oil production , etc. So for nature to have more asset value we need to measure a country's economy differently." Mahmoud Mohieldin, UN Special Envoy on Financing the 2030 Agenda.

“It is really important for us to listen to nature because as Indigenous people, we live in harmony with nature. Everything to us depends on nature. The well being of the Indigenous person depends on the well being of nature. If nature has a problem it means we are all in difficulty.   Because nature to us is like a supermarket. This is where we get our food, this is where we get our medication. This is where we get our shelter. Our spirituality is embedded in nature. So the well being of nature is really key to us.” Balikissou Buba, REPALEAC (for the Global Alliance of Territorial Communities).

"If you need to see a doctor, you don't ask for the price of the medicine. You don't ask how much it costs to be healed. So don't ask how much you need to put into dedicated finance for the doctors of nature. It is the price of your health and the future of your children to land at COP30 in the right place." Hindou Oumarou Ibrahim,President of the Indigenous Women & Peoples' Association of Chad,Cochair of the International Indigenous Peoples' Forum on Climate Change

📰 FEATURED NEWS

• Reuters shares a commentary demanding global leaders stop breaking their promises on ending deforestation and to use COP29 and COP30 as their opportunity to start a new chapter for nature.
• Environmental Finance shares analysis that finds land use emissions are declining but are still 'substantial'.  Ghana made US$800 million from carbon trading with Switzerland, Sweden
• The Herald Ghana reports that Ghana's President Nana Akufo-Addo announced at COP29 that Ghana has received over USD 800 million by trading carbon credits with Switzerland and Sweden in a move to reduce global emissions through the carbon markets. 
• Quantum Commodity Intelligence shares Verra and the Brazilian state of Amazonas have signed a memorandum of understanding (MoU) to work together on strengthening the Brazilian state's carbon markets.  
• Bloomberg reviews the issue of announcements of promised climate cash at COPs that seem to never be delivered. For some, the answer is to turn towards private finance but this is already being opposed by highly indebted developing nations, which are pushing for a narrower goal that places emphasis on delivering publicly financed grants.
• Mongabay reports African leaders at COP29 are leading a narrative that climate finance to protect their forests and other natural resources shouldn't be seen as charity or a handout, but as valuable assets that deserve recognition in our accounting books and global plans to halt climate change.
• CNN shares that Argentine delegates at the COP29 United Nations climate summit in Baku, Azerbaijan, have been ordered to withdraw from negotiations and return home. The delegates took part in the first two days of the summit, but Argentina's President has not been shy in calling climate change a hoax. 

💌 Missed Something? This is a condensed version of our COP29 Daily Briefing. For the full content delivered directly to your inbox, subscribe here.