Editorial: Banking on Baku summit

COP 29 will need to reflect on the needs and priorities of the developing countries

As there are growing expectations from the upcoming global climate summit, COP 29 (Conference of Parties), over strategies needed to tackle the worsening crisis, the key question that needs answers is the fate of the climate finance commitments made by the rich nations in the past. It is time for a candid reality check as the industrialised world has failed to meet the $100 billion annual commitment made over a decade ago. Given the scale of the global needs, it is a paltry amount. Even that commitment has not been fulfilled so far. The coming round of the United Nations Climate Change Conference, to be held in Azerbaijan’s capital Baku from November 11 to 22, will need to reflect on the needs and priorities of the developing countries. It is expected that a broad agreement will be finalised on a New Collective Quantified Goal regarding climate finance. To bridge the enormous gap between the funds availability and the actual requirement, private finance will need to be mobilised and broader reforms made to global financial architecture. At present, climate finance is the most contentious issue with nations disagreeing on who should pay, how much should be paid, what forms the funding should take — either loans or grants — and how the funds should be accessed. The flow of funds has been erratic and inadequate over the years. The COP29, to be attended by representatives from 196 countries, is being held amid worsening geopolitical tensions in the wake of the raging wars in the Middle East and Ukraine.

At the 2023 Climate Change Conference held at Dubai — COP28 —, the countries had agreed “to end the age of fossil fuels,” limit the rise in global temperatures to 1.5 degrees Celsius above pre-industrial levels, triple renewable energy capacities and double improvements in energy efficiency, and halt deforestation by 2030. The Baku summit would provide an opportunity to take stock of the progress made on the national climate action plans under the Paris Agreement. Studies have emphasised that countries need to do more to keep global temperature rise within the 1.5 degrees target set by the Paris pact. Another contentious issue pertains to the phasing out of fossil fuels. Ironically, Azerbaijan, which will preside over the summit, is highly dependent on fossil fuels. It has a strong incentive to avoid rapid multilateral progress towards phasing out fossil fuels. It is absolutely essential that the COP29 makes significant progress because climate action is already lagging far behind the promises made by the member countries. For India, the deliberations provide yet another opportunity to voice the concerns of the developing countries. India cites its low per capita emissions to counter any international demand to cap its overall emissions, arguing that it needs to lift its people to similar living standards as in the developed countries.

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