By Ana Tunas Matilla
Environment Desk, Nov 25 (EFE).- Financing will form the cornerstone of the Dubai climate summit in raising the goal of transferring funds from rich to developing countries for mitigation actions and adaptation to climate change, currently set at $100 billion a year.
Additionally, negotiators must finalize details of the loss and damage fund, whose creation was agreed upon at the Egypt meeting (COP27), and advance the development of carbon markets, an alternative means of climate financing outlined in the Paris Agreement to combat global warming.
Days before the start of the summit on Nov. 30, the Organization for Economic Cooperation and Development (OECD) announced that the objective of mobilizing $100 billion to help the poorest countries confront the climate crisis for the period 2020–2025 was probably achieved in 2022, two years later than initially promised.
This objective was set at the Copenhagen Summit in 2009, after which the Green Climate Fund (the world’s largest climate investment vehicle, dependent on the UN) was created, with its compliance overseen by the OECD.
Adaptation and private capital in the spotlight
Recently, OECD President Mathias Cormann warned that although climate financing remains on an upward path, efforts in adaptation must significantly increase.
In 2021, adaptation funding moved 14 percent less compared to 2020, and private financing needs to be attracted.
According to OECD data, in 2021, climate financing totaled $89.6 billion, with $73.1 billion from public sources, doubling their contribution. Private capital contributed only $14.4 billion, or 16 percent of the total.
Multilateral development banks are of particular importance in raising and distributing funds.
COP28 President Sultan al-Jaber demanded that they work on national platforms, review their climate financing objectives, especially in adaptation, and reduce risk to the private sector.
Cormann noted that adaptation finance is essential for building resilience, and private finance is crucial to closing the gap for climate action investments, particularly in clean energy systems, agriculture, forestry, land use, adaptation, and resilience.
The UN Environment Program’s eighth edition of the adaptation gap report indicates that rich countries should multiply funds between 10 and 18 times to cover the adaptation needs of poorer nations compared to the devastating effects of the climate crisis.
The adaptation costs of these countries, estimated by UNEP, range between $215 billion and $387 billion a year. The Glasgow Summit (COP26) set the goal of mobilizing $40 billion by 2025.
COP28 must also advance the development of carbon markets designed to help countries meet their commitments to address the climate emergency purchase and sale of carbon credits generated by mitigation programs in third nations.
Priorities include providing these markets with guarantee systems and avoiding double accounting of projects by nations.
Loss and damage: who pays?
COP28 must endorse the implementation of the loss and damage fund, sought for decades by Global South countries.
The transitional committee created to shape it has proposed housing it in the World Bank, at least for the next four years, despite the opposition of its potential beneficiaries.
The objective is to assist developing countries with the losses and damages suffered in their territory due to adverse phenomena caused by climate change, to which they have contributed little.