Table.Briefing: Climate (English)

COP29: Before the decision + Debt: The taboo of Baku + CO2 reduction

Dear reader,

To this day, Sultan Al Jaber insists that the Majlis at COP28 in Dubai was the breakthrough for the global stocktake. The meeting of the leading minds at the climate summit a year ago, in accordance with Emirati custom, is said to have made the historic step towards abandoning fossil fuels possible in the first place.

The Azerbaijani COP presidency may also have hoped for a similar dynamic on Thursday when it hosted the Qurultay – the name of a traditional gathering of the Turkic peoples. But instead, all the countries let off steam. They accused each other of playing games and called on the presidency to finally play a more active role. The debate on reducing emissions – mitigation in COP jargon – was particularly divisive, as Bernhard Pötter analyzes.

There was no sign of any positive momentum here. But couldn’t that be exactly the playbook for this COP? Even in Dubai, shortly before the official end of the conference, there was only a bad text that nobody was really satisfied with. But then negotiators got moving and reached the UAE Consensus, also known as the agreement to move away from fossil fuels.

Perhaps another such compromise paper awaits us today. Rumors in the corridors in Baku point to this, as you can read in today’s Climate.Table.

Hang in there!

Your
Lukas Knigge
Image of Lukas  Knigge

Feature

Climate conference before the endgame: Which strategies are being debated

Some indications suggest that COP President Mukhtar Babayev is pursuing the same strategy as his predecessor: first frustration, then a breakthrough.

On its official penultimate day, the COP29 on Thursday was simultaneously characterized by paralyzing stagnation and hectic activity. New draft texts from the presidency in the morning mainly formulated the well-known contradictions and led to sharp rejection by many parties. There was hardly any sign of the Presidency’s signature.

There was little sign of solutions to the key issues of finance and emissions reduction throughout the day. However, there was also information on progress on the financial target and pledges for ambitious NDCs from a number of countries – this could promote a deal. And the big question is: Is there a presidential strategy behind it?

Weak texts, bitter dispute in plenary

In the texts submitted so far, the Azerbaijani Presidency has mainly presented the opposing positions. This means that the proposals are still so far apart that the ministers who are now negotiating still have too many options. For example, there are still no figures for the controversial financial target in the NCQG text. “There is no compromise proposal” to build a bridge between the ideas of the individual states, said Rob Moore, Deputy Director of E3G.

The other texts are also still a long way from agreement. The topic of emissions reduction is even presented in such a way that it led to a bitter dispute in plenary.

EU representatives described the proposals as “unbalanced and unacceptable“. The AOSIS group of island states complained that there was still a long way to go to achieve greater balance and ambition. Bolivia, on the other hand, accused the developed countries of hypocrisy. They should increase funding instead of insisting on reduction targets in developing countries. India criticized other countries for wanting to talk more about mitigation. This was a distraction from its own responsibility for providing financial resources. UN Secretary-General António Guterres, who returned to COP29, warned: “This is a COP to ensure justice in the face of the climate catastrophe. Failure is not an option”.

A script for the presidency?

The crucial question is whether all of this is possibly following a presidential script. It could play out like last year in Dubai: After the consultations, the presidency presents texts that merely summarize the opinions of the countries – and which are unacceptable to all sides and provoke great resistance. After a day of turmoil, the presidency then comes to the rescue with a prepared compromise paper – that would be on Friday morning. Rumors suggest that there was already a compromise proposal on finances on Wednesday evening, but that the presidency did not accept it.

There are two arguments in favor of such a strategy by the COP29 leaders: it worked at COP28. And Azerbaijan also stuck to the Dubai script at the start of the conference when it opened the conference with a small success in the negotiations on trade issues under Article 6.4. German Foreign Minister Annalena Baerbock also evoked memories of Dubai: She was combative when it came to the EU’s goals on mitigation and “broadening the donor base” for a financial solution.

Baerbock invokes grand coalition of Dubai

“We will not allow the text from Dubai to be watered down,” said Baerbock. She recalled the “grand coalition of Dubai”. Back then, around 140 countries pushed through the progress of the goals in the Global Stocktake (GST) – with the support of the UAE Presidency and against Saudi Arabia, which also acted as a major brake on progress in Baku. It is possible that this would also be like a year ago: a deal that isolates Saudi Arabia.

The debate on mitigation could also fit into this pattern: After all, as compensation for financial commitments made by industrialized countries to the financial target, the final document could grant progress in the debate on mitigation. This could contribute to the urgently needed “balance” of a deal that everyone criticizes, but still finds something in it for themselves.

Breakthrough by the EU and China?

However, there are also tactical signs of cooperation. For example, there are apparently signs of movement between the EU, the island states and China on the issue of the financial target. China knows that there has to be a solution here, they say. There is even said to be progress in the hotly contested debate over who should contribute to the “quantum”. “We see informal talks between the EU and China that could bring a breakthrough on the most critical issues,” says Linda Kalcher, Executive Director of the think tank Strategic Perspectives.

Both sides are working on an option to expand the donor base, say several observers. As soon as there is certainty that the industrialized countries will continue to bear the main responsibility for climate financing, “China could also have its contributions presented as climate financing. This could potentially also include contributions to the budget of development banks,” says Kalcher. An important key to China’s contribution would be more transparency about climate financing, which China is already providing today. China is sending signals that it would be willing to be more transparent.

EU leads initiative for ambitious NDCs

The EU, Canada, Chile, Mexico, Norway, the UK, Brazil, Switzerland and Georgia also called for more ambition yesterday. In their Nationally Determined Contributions (NDCs), they promised to move away from fossil fuels. They announced that they would extend their targets to all economic sectors and greenhouse gases and bring them into line with the respective climate neutrality targets. All countries should follow these principles in their next NDCs, explained EU Commissioner Wopke Hoekstra.

However, with the exception of the UK and Brazil, none of these countries have yet presented their NDC for 2035. The EU will also not present its NDC before the deadline in February 2025, as the member states must first adopt the climate target for 2040, from which the 2035 target will subsequently emerge. Nevertheless, observers see the EU’s participation in the NDC initiative as a positive signal from the EU.

  • China
  • Climate policy
  • COP28
  • COP29
  • Europe
  • Klimafinanzen
  • Klimafinanzierung
  • Mitigation

Sovereign debt: Why developing countries do not demand climate money from China

Ali Mohamed, Chair of the Africa Group and Special Envoy for Climate Change of Kenyan President William Ruto, at COP29.

It is one of the most contentious questions at COP29: Which countries should contribute to the new financial target, the NCQG? High-income and heavily polluting emerging economies – such as China – are unwilling to take on payment obligations. Developing countries are not demanding China’s participation, even though the country is a major lender for many of them, particularly in Africa. This issue is rarely discussed at the climate conference. And there are good reasons for that.

Indebtedness exacerbated by climate change-induced extreme weather events and impacts is one of the drivers of the developing countries’ demand that grants and highly concessional loans form the core of the climate finance provided by rich industrialized countries.

Low-middle-income and low-income countries are particularly crippled by debt. It limits the fiscal space to take measures that would accelerate the energy transition and the pace at which these countries shift their developmental trajectory.

No meaningful climate finance discussion without a debt debate

No conversation on climate finance that is fit for purpose can avoid the question of debt. Yet, the discussions on avoiding indebtedness in Baku are marked by an obvious silence. There is little mention of China, which relies on loans and export credits to give financial assistance to other developing countries.

Addressing the World Leaders Climate Action Summit at COP29, Chinese Vice Premier Ding Xuexiang said “Since 2016, China has provided and mobilized more than 177 billion yuan (24.5 billion US dollars) of project funds in support of other developing countries climate response”

A study by the Washington DC-based think tank World Resources Institute finds that between 2013 and 2022, China provided and mobilized 45 billion US dollars to developing countries. Delving into the elements of this money, the study finds that about 26 percent, or 11,7 billion is in the form of export credits. These are loans provided by China EXIM and guarantees or insurance provided by SINOSURE. In comparison, export credits account for 3 percent of funds provided by developed countries.

All amounts are irrelevant if you don’t address fiscal space

Despite this, discussions on the new collective quantified goal on finance tiptoe around the debt that China holds. That subject is taboo. Negotiators involved in the two-year-long discussions say that China has made it clear that the UNFCCC and the discussion on the new climate finance goal are not the appropriate spaces for discussion debt. That conversation belongs outside the UN climate process.

For many countries, including many African countries and least developed countries, addressing the issue of debt is critical, if not more, as the “quantum” or amount of the new goal. Take Kenya, for example, a middle-income country, 67 percent of its budget goes to service the country’s debt. Not all of it is climate-related but the high burden of debt and debt servicing constrains the ability of a country like Kenya to take measures to reduce emissions, increase resilience to climate change, and ability to adapt to the impacts of climate change.

“If the fiscal space does not allow you to access finance, then you cannot. No amount of quantum agreed here at Baku is relevant unless you address the fiscal space,” said a senior negotiator from Africa.

Given its criticality, why then are the developing countries under the umbrella of the G77 and China underplaying the issue of debt? While important, it is a matter of priority and sequencing.

“The Paris Agreement is very clear, it emphasizes that developed countries must provide leadership and developing countries have to be supported,” said Ali Mohamed, Chair of the Africa Group and Special Climate Envoy of President William Ruto of Kenya.

Within the UNFCCC, the focus must be on industrialized countries

“Debt matters, clearly but here in the UNFCCC, the focus must be on ensuring the developed industrialized countries. The NCQG is about climate finance provided and mobilized by developed countries for developing ones,” explained a diplomat from a small island state.

China’s reticence about talking debt notwithstanding, negotiators from other big and advanced developing countries, and even the more vulnerable developing countries are of the view that a “good finance deal” will require the developing country bloc to remain united. “The G-77 and China have presented a united front, and they will remain so. They have taken steps to underscore their unity, putting forward a collective ask of 1.3 trillion US dollar figure collective finance goal,” said Mohamed Adow, founding director of the Nairobi-based think tank Power Shift Africa.

Negotiating bloc relies on unity

This approach takes a leaf from the developed country playbook. There are divergence among developed countries on the issue of finance, particularly on delivering on pledges. The European Union provides a higher quantum of finance than the United States, French contribution for instance relies more on loans than grants. Yet there is a semblance of a common position when it comes to dealing with developing countries on the issue. This is exactly what the developing country members are choosing to do.

“Developing countries understand that in a group that has more than 130 parties, with varying levels of development and economy, divergences of opinions are par for course. What matters is how these are managed while keeping an eye on the main prize: ensuring developed countries meet their commitments of providing support,” said a negotiator from an advanced developing country.

“These discussions are taking place, we are trying to engage with countries like China to address the issue of debt, allocation floors, but these are not fault lines that could see the G77 and China breakdown,” said a senior African negotiator.

Staying together makes sense, and if that means quieter discussions on some issues or postponing them, then that is the path the G77 and China have adopted. Urmi Goswami

  • China
  • Climate financing
  • COP29
  • Developing countries
  • NCQG

COP29: Why emissions reduction is becoming a difficult topic

The Bolivian head of delegation, Diego Pacheco, is against including emissions reduction in the COP29 outcome document.

It sounds absurd, but that’s the COP: One of the most bitter battles between the groups of states at COP29 revolves around whether and how a debate on more effective climate action can be anchored at the climate conference: A group of countries from developing and industrialized nations is exerting pressure to anchor the topic of emissions reduction prominently in the decision text and thus in the UNFCCC process. What they call “more effective climate protection in the critical years before 2030”, however, is meeting with resistance from many emerging economies. This is because they are opposed to having climate protection criteria prescribed in their upcoming climate plans (NDCs).

The current texts, which were presented on Thursday morning, clearly show this division. In the proposal for the Mitigation Work Program (MWP), for example, hardly any link is made to the upcoming NDCs – but it is emphasized that the countries draw up their plans independently and that the link to the NDCs is voluntary and each country can decide for itself. In turn, the proposal for the “UAE Dialogue“, which is intended to follow up on the results of last year’s Global Stocktake (GST), contains four different options on this issue, which are far apart.

The reports in the COP29 plenary session on Thursday afternoon were correspondingly controversial. Countries such as Australia, the EU and Germany opposed the text, calling it “unacceptable” and “a big step backwards”. A link between the GST results and the criteria for the NDCs is needed, the text presented “cannot be our answer to people’s suffering”, said Germany’s climate envoy Jennifer Morgan. Spokespersons from developing countries, on the other hand, accused the industrialized countries of imposing policies against the Paris Agreement and not providing financing for climate protection.

Emission reduction in NDCs voluntary

The background is that while the term financing appears more than a dozen times on the COP agenda, emissions reduction, as mitigation, has hardly been anchored there so far. This means that the central question of the climate crisis is hardly ever officially discussed – namely, how to reduce greenhouse gas emissions as quickly as possible.

Since the MWP was adopted at COP26 in Glasgow, it has never really become clear what concrete consequences it will have. This is because, according to the Paris Agreement, countries are not required to reduce emissions – they specify them voluntarily in their NDCs. However, the NDC synthesis report from the UN Climate Change Secretariat confirms every year that this ambition is not enough to achieve the Paris goals: According to this, the current NDCs only envisage that global emissions will only fall by 2.6 percent between 1990 and 2030. However, they would have to fall by around 45 percent in order not to abandon the 1.5-degree target.

As it was already clear before the Paris Agreement that the countries’ NDCs would not be sufficient, there was a proposal to oblige the countries to adopt strict NDCs. If these were then insufficient, they were to be sent back to the countries for improvement. This was not feasible. Now the rule is: each country only does what it wants and can do.

Nevertheless, according to the Paris Agreement, the Global Stocktake is to shape the new NDCs, which are to be submitted by February. The resolution on the GST at COP28 in Dubai, on the other hand, stipulated, among other things, that countries should “transition away” from fossil fuels, triple renewables, double efficiency, and limit the destruction of forests. The industrialized countries would also like these goals to be anchored in such a way that they shape the NDCs in the countries. It could look like this:

  • The NDCs could explain how they intend to implement the goals of the GST (transition away, renewables, efficiency).
  • New and far-reaching demands could be formulated in the NDCs – such as a coal phase-out with an end date.
  • The countries could adopt some of the non-binding pledges of the COP29 presidency and align the NDCs with them (expansion of grids and storage, “green corridors” for renewable energies).
  • They could limit themselves to repeating the Dubai language – and thus pass it off as progress that there is no regression behind Dubai.

No regression is apparently the toughest possible demand for the EU this year, as Climate Commissioner Wopke Hoekstra announced at COP29. We must not fall behind the language from Dubai, was his mantra before the final draft text was published on Thursday morning. There was no mention of new demands on mitigation. Confirmation of the GST results seemed to be the maximum achievable in Baku anyway. Now that, according to Hoekstra, the proposed text is going “in the opposite direction”, the Commissioner is making demands for “enhancement and improvement” in the implementation of the GST targets.

G77 does not want an obligation to reduce emissions

On behalf of the G77 and China, the Bolivian delegation leader Diego Pacheco opposed the inclusion of emissions reductions in the final documents. For him, the industrialized countries only want to distract attention from the fact that they are not prepared to make concessions on finances. Furthermore, “these are measures that tell other countries what to do and interfere with their policies”, Pacheco told Table.Briefings. This is a violation of the Paris Agreement.

Pacheco also rejects the linking of the results of Dubai (transition away…) with the NDCs, which are due next February 2025. It would not simply be a repetition of the Dubai consensus if the individual country NDCs were aligned with it. In Dubai, the goals of expanding renewables, efficiency and phasing out fossil fuels were aimed at the global community – and not specifically at individual countries in their current NDCs. And when it comes to implementing the Dubai resolutions, the industrialized countries must lead the way, as is emphasized throughout the process. However, the industrialized countries are not demanding that all countries implement the Dubai decision in their NDCs – but that they make it clear how they intend to align their own plans with the 1.5-degree target in light of these decisions.

In the negotiations in Baku, mitigation is not only important in itself, but also one of the most important negotiating chips. In order to achieve a balanced agreement, concessions by industrialized countries on the financial target should be combined with progress on mitigation. The success of COP29 will depend on where exactly the possible compromises lie. With Lukas Knigge

  • COP28
  • COP29
  • Fossile Brennstoffe
  • Mitigation

News

Loss and Damage: Why New Zealand wants to pay Vanuatu millions

New Zealand wants to contribute four million New Zealand dollars ($2.35 million) to the establishment of a loss and damage fund on the island state of Vanuatu. This was reported by the New Zealand news portal Newsroom. The deal is due to be signed next week. Vanuatu estimated in 2022 that the island state would need $177 million over the next decade to respond to damage and losses. According to the New Zealand delegation, the new fund for Vanuatu is another “piece in the mosaic” of funding for damage and loss.

New Zealand has also pledged money for the international “Loss and Damage” fund agreed at COP27, namely around six million US dollars. So far, this fund has been completely underfunded. Last year, the countries pledged around $675 million for this purpose at COP28; this year, only $85 million has been added so far. However, the need is estimated to be at least hundreds of billions. kul

  • COP28
  • Loss and Damage
  • Pacific
  • Vanuatu

Mittelplate: New lawsuit against oil platform in the Wadden Sea

The Mittelplatte oil platform has long been a thorn in the side of conservationists: Surrounded by the Schleswig-Holstein Wadden Sea National Park, within sight of the bird sanctuary island of Trischen, crude oil has been extracted since 1987, initially by ship and now transported ashore via a pipeline. Extraction in the national park is permitted because the platform was approved before the national park was established. After earlier lawsuits against the oil extraction were unsuccessful, Deutsche Umwelthilfe (DUH) is now making a new attempt to stop it legally.

The association initiated summary proceedings on Thursday. It is directed against the approval of the main operating plan, which must be regularly extended to continue oil production. The application for an immediate halt to production is based on the fact that an impact assessment was never carried out for the platform per the Flora-Fauna-Habitat Directive (FFH). This directive only came into force when the platform was already in operation. However, DUH lawyer Remo Klinger argues that there is no unrestricted grandfathering. The assessment must also be carried out retrospectively “if it cannot be ruled out that the likelihood or risk of deterioration of habitats or disturbance of species exists as a result of the implementation or continuation of such a project”.

In addition to the protection of the Wadden Sea, the environmental organization also justifies its action against Mittelplate with climate action. “In terms of climate policy, Germany can only retain its international credibility if the North Sea and the Wadden Sea UNESCO World Heritage Site become fossil-free as quickly as possible,” says Constantin Zerger, Head of Energy and Climate Protection at DUH. mkr

  • Umweltschutz

Industrialized countries: How climate finance brings economic benefits

“An ambitious new climate finance target is entirely in the self-interest of all nations, including the largest and richest.” This statement by UNFCCC Executive Secretary Simon Stiell is confirmed by a new study by Imperial College London. It concludes that it is “not only fair, but also in the economic interest of industrialized countries” to provide climate finance on a large scale to developing countries.

In their paper, finance and economics professor Patrick Bolton and visiting assistant professor of finance Alissa M. Kleinnijenhuis estimate the “inner quantum” of public subsidies or comparable forms of climate finance needed to decarbonize the energy sector in developing countries at $255.9 billion per year. The additional “external quantum”, which includes private funding, amounts to $957.9 billion per year. If the industrialized countries were to provide this “inner quantum”, they could derive great economic benefits from it, according to the paper.

Bolton and Kleinnijenhuis recommend aligning the new NCQG financial target with the 1.5-degree limit. To this end, the NCGQ must “focus on replacing fossil fuels“, which includes both the opportunity costs of early fossil fuel decommissioning and the investment costs in renewable energy to keep pace with the growth in energy demand. Negotiating positions at COP29 that contradict this would “ultimately work to the economic disadvantage of industrialized countries and to the detriment of least developed countries, small island states and other developing countries”. ae

  • NCQG

COP29: Over 50 scientists call for action to combat the climate impact of contrails

Climate researchers from around the world have called for decisive action against aircraft contrails. In an open letter published on the fringes of the World Climate Conference in Azerbaijan, the more than 50 signatories call on politicians to finally take the problem seriously and take action. The Intergovernmental Panel on Climate Change (IPCC) recognized the climate impact of contrails 25 years ago. Since then, however, far too little has been done.

Contrails have as much impact on the climate as CO2 emissions from air traffic

Studies show that contrails contribute at least as much to global warming as CO2 emissions from air traffic. The scientists therefore consider a number of measures to be necessary. In addition to further research, these include the establishment of a monitoring system and large-scale pilot projects so that mitigation measures can be implemented as soon as they are available. The public and passengers should also be made more aware of the issue.

According to a recent study, only three percent of all flights cause 80 percent of global warming through contrails. More than half of this could be reduced by 2040 simply by changing flight routes. The resulting benefit for the climate would be at least 15 times greater than the additional CO2 emissions of longer flight routes, according to the study. For a route from Frankfurt to Washington, the additional costs per flight and passenger would amount to less than four euros.

Changing flight routes is a simple way to stop global warming

“Preventing contrails has proven to be one of the most easily achievable options to stop the rise in global temperatures,” says Anthony Patt, Professor of Climate Policy at ETH Zurich and one of the signatories of the open letter. However, as air traffic must be strictly regulated for safety reasons, even minor changes to flight routes require “coordinated government leadership“. ch

  • Klimaforschung

Climate.Table Editorial Team

CLIMATE.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    To this day, Sultan Al Jaber insists that the Majlis at COP28 in Dubai was the breakthrough for the global stocktake. The meeting of the leading minds at the climate summit a year ago, in accordance with Emirati custom, is said to have made the historic step towards abandoning fossil fuels possible in the first place.

    The Azerbaijani COP presidency may also have hoped for a similar dynamic on Thursday when it hosted the Qurultay – the name of a traditional gathering of the Turkic peoples. But instead, all the countries let off steam. They accused each other of playing games and called on the presidency to finally play a more active role. The debate on reducing emissions – mitigation in COP jargon – was particularly divisive, as Bernhard Pötter analyzes.

    There was no sign of any positive momentum here. But couldn’t that be exactly the playbook for this COP? Even in Dubai, shortly before the official end of the conference, there was only a bad text that nobody was really satisfied with. But then negotiators got moving and reached the UAE Consensus, also known as the agreement to move away from fossil fuels.

    Perhaps another such compromise paper awaits us today. Rumors in the corridors in Baku point to this, as you can read in today’s Climate.Table.

    Hang in there!

    Your
    Lukas Knigge
    Image of Lukas  Knigge

    Feature

    Climate conference before the endgame: Which strategies are being debated

    Some indications suggest that COP President Mukhtar Babayev is pursuing the same strategy as his predecessor: first frustration, then a breakthrough.

    On its official penultimate day, the COP29 on Thursday was simultaneously characterized by paralyzing stagnation and hectic activity. New draft texts from the presidency in the morning mainly formulated the well-known contradictions and led to sharp rejection by many parties. There was hardly any sign of the Presidency’s signature.

    There was little sign of solutions to the key issues of finance and emissions reduction throughout the day. However, there was also information on progress on the financial target and pledges for ambitious NDCs from a number of countries – this could promote a deal. And the big question is: Is there a presidential strategy behind it?

    Weak texts, bitter dispute in plenary

    In the texts submitted so far, the Azerbaijani Presidency has mainly presented the opposing positions. This means that the proposals are still so far apart that the ministers who are now negotiating still have too many options. For example, there are still no figures for the controversial financial target in the NCQG text. “There is no compromise proposal” to build a bridge between the ideas of the individual states, said Rob Moore, Deputy Director of E3G.

    The other texts are also still a long way from agreement. The topic of emissions reduction is even presented in such a way that it led to a bitter dispute in plenary.

    EU representatives described the proposals as “unbalanced and unacceptable“. The AOSIS group of island states complained that there was still a long way to go to achieve greater balance and ambition. Bolivia, on the other hand, accused the developed countries of hypocrisy. They should increase funding instead of insisting on reduction targets in developing countries. India criticized other countries for wanting to talk more about mitigation. This was a distraction from its own responsibility for providing financial resources. UN Secretary-General António Guterres, who returned to COP29, warned: “This is a COP to ensure justice in the face of the climate catastrophe. Failure is not an option”.

    A script for the presidency?

    The crucial question is whether all of this is possibly following a presidential script. It could play out like last year in Dubai: After the consultations, the presidency presents texts that merely summarize the opinions of the countries – and which are unacceptable to all sides and provoke great resistance. After a day of turmoil, the presidency then comes to the rescue with a prepared compromise paper – that would be on Friday morning. Rumors suggest that there was already a compromise proposal on finances on Wednesday evening, but that the presidency did not accept it.

    There are two arguments in favor of such a strategy by the COP29 leaders: it worked at COP28. And Azerbaijan also stuck to the Dubai script at the start of the conference when it opened the conference with a small success in the negotiations on trade issues under Article 6.4. German Foreign Minister Annalena Baerbock also evoked memories of Dubai: She was combative when it came to the EU’s goals on mitigation and “broadening the donor base” for a financial solution.

    Baerbock invokes grand coalition of Dubai

    “We will not allow the text from Dubai to be watered down,” said Baerbock. She recalled the “grand coalition of Dubai”. Back then, around 140 countries pushed through the progress of the goals in the Global Stocktake (GST) – with the support of the UAE Presidency and against Saudi Arabia, which also acted as a major brake on progress in Baku. It is possible that this would also be like a year ago: a deal that isolates Saudi Arabia.

    The debate on mitigation could also fit into this pattern: After all, as compensation for financial commitments made by industrialized countries to the financial target, the final document could grant progress in the debate on mitigation. This could contribute to the urgently needed “balance” of a deal that everyone criticizes, but still finds something in it for themselves.

    Breakthrough by the EU and China?

    However, there are also tactical signs of cooperation. For example, there are apparently signs of movement between the EU, the island states and China on the issue of the financial target. China knows that there has to be a solution here, they say. There is even said to be progress in the hotly contested debate over who should contribute to the “quantum”. “We see informal talks between the EU and China that could bring a breakthrough on the most critical issues,” says Linda Kalcher, Executive Director of the think tank Strategic Perspectives.

    Both sides are working on an option to expand the donor base, say several observers. As soon as there is certainty that the industrialized countries will continue to bear the main responsibility for climate financing, “China could also have its contributions presented as climate financing. This could potentially also include contributions to the budget of development banks,” says Kalcher. An important key to China’s contribution would be more transparency about climate financing, which China is already providing today. China is sending signals that it would be willing to be more transparent.

    EU leads initiative for ambitious NDCs

    The EU, Canada, Chile, Mexico, Norway, the UK, Brazil, Switzerland and Georgia also called for more ambition yesterday. In their Nationally Determined Contributions (NDCs), they promised to move away from fossil fuels. They announced that they would extend their targets to all economic sectors and greenhouse gases and bring them into line with the respective climate neutrality targets. All countries should follow these principles in their next NDCs, explained EU Commissioner Wopke Hoekstra.

    However, with the exception of the UK and Brazil, none of these countries have yet presented their NDC for 2035. The EU will also not present its NDC before the deadline in February 2025, as the member states must first adopt the climate target for 2040, from which the 2035 target will subsequently emerge. Nevertheless, observers see the EU’s participation in the NDC initiative as a positive signal from the EU.

    • China
    • Climate policy
    • COP28
    • COP29
    • Europe
    • Klimafinanzen
    • Klimafinanzierung
    • Mitigation

    Sovereign debt: Why developing countries do not demand climate money from China

    Ali Mohamed, Chair of the Africa Group and Special Envoy for Climate Change of Kenyan President William Ruto, at COP29.

    It is one of the most contentious questions at COP29: Which countries should contribute to the new financial target, the NCQG? High-income and heavily polluting emerging economies – such as China – are unwilling to take on payment obligations. Developing countries are not demanding China’s participation, even though the country is a major lender for many of them, particularly in Africa. This issue is rarely discussed at the climate conference. And there are good reasons for that.

    Indebtedness exacerbated by climate change-induced extreme weather events and impacts is one of the drivers of the developing countries’ demand that grants and highly concessional loans form the core of the climate finance provided by rich industrialized countries.

    Low-middle-income and low-income countries are particularly crippled by debt. It limits the fiscal space to take measures that would accelerate the energy transition and the pace at which these countries shift their developmental trajectory.

    No meaningful climate finance discussion without a debt debate

    No conversation on climate finance that is fit for purpose can avoid the question of debt. Yet, the discussions on avoiding indebtedness in Baku are marked by an obvious silence. There is little mention of China, which relies on loans and export credits to give financial assistance to other developing countries.

    Addressing the World Leaders Climate Action Summit at COP29, Chinese Vice Premier Ding Xuexiang said “Since 2016, China has provided and mobilized more than 177 billion yuan (24.5 billion US dollars) of project funds in support of other developing countries climate response”

    A study by the Washington DC-based think tank World Resources Institute finds that between 2013 and 2022, China provided and mobilized 45 billion US dollars to developing countries. Delving into the elements of this money, the study finds that about 26 percent, or 11,7 billion is in the form of export credits. These are loans provided by China EXIM and guarantees or insurance provided by SINOSURE. In comparison, export credits account for 3 percent of funds provided by developed countries.

    All amounts are irrelevant if you don’t address fiscal space

    Despite this, discussions on the new collective quantified goal on finance tiptoe around the debt that China holds. That subject is taboo. Negotiators involved in the two-year-long discussions say that China has made it clear that the UNFCCC and the discussion on the new climate finance goal are not the appropriate spaces for discussion debt. That conversation belongs outside the UN climate process.

    For many countries, including many African countries and least developed countries, addressing the issue of debt is critical, if not more, as the “quantum” or amount of the new goal. Take Kenya, for example, a middle-income country, 67 percent of its budget goes to service the country’s debt. Not all of it is climate-related but the high burden of debt and debt servicing constrains the ability of a country like Kenya to take measures to reduce emissions, increase resilience to climate change, and ability to adapt to the impacts of climate change.

    “If the fiscal space does not allow you to access finance, then you cannot. No amount of quantum agreed here at Baku is relevant unless you address the fiscal space,” said a senior negotiator from Africa.

    Given its criticality, why then are the developing countries under the umbrella of the G77 and China underplaying the issue of debt? While important, it is a matter of priority and sequencing.

    “The Paris Agreement is very clear, it emphasizes that developed countries must provide leadership and developing countries have to be supported,” said Ali Mohamed, Chair of the Africa Group and Special Climate Envoy of President William Ruto of Kenya.

    Within the UNFCCC, the focus must be on industrialized countries

    “Debt matters, clearly but here in the UNFCCC, the focus must be on ensuring the developed industrialized countries. The NCQG is about climate finance provided and mobilized by developed countries for developing ones,” explained a diplomat from a small island state.

    China’s reticence about talking debt notwithstanding, negotiators from other big and advanced developing countries, and even the more vulnerable developing countries are of the view that a “good finance deal” will require the developing country bloc to remain united. “The G-77 and China have presented a united front, and they will remain so. They have taken steps to underscore their unity, putting forward a collective ask of 1.3 trillion US dollar figure collective finance goal,” said Mohamed Adow, founding director of the Nairobi-based think tank Power Shift Africa.

    Negotiating bloc relies on unity

    This approach takes a leaf from the developed country playbook. There are divergence among developed countries on the issue of finance, particularly on delivering on pledges. The European Union provides a higher quantum of finance than the United States, French contribution for instance relies more on loans than grants. Yet there is a semblance of a common position when it comes to dealing with developing countries on the issue. This is exactly what the developing country members are choosing to do.

    “Developing countries understand that in a group that has more than 130 parties, with varying levels of development and economy, divergences of opinions are par for course. What matters is how these are managed while keeping an eye on the main prize: ensuring developed countries meet their commitments of providing support,” said a negotiator from an advanced developing country.

    “These discussions are taking place, we are trying to engage with countries like China to address the issue of debt, allocation floors, but these are not fault lines that could see the G77 and China breakdown,” said a senior African negotiator.

    Staying together makes sense, and if that means quieter discussions on some issues or postponing them, then that is the path the G77 and China have adopted. Urmi Goswami

    • China
    • Climate financing
    • COP29
    • Developing countries
    • NCQG

    COP29: Why emissions reduction is becoming a difficult topic

    The Bolivian head of delegation, Diego Pacheco, is against including emissions reduction in the COP29 outcome document.

    It sounds absurd, but that’s the COP: One of the most bitter battles between the groups of states at COP29 revolves around whether and how a debate on more effective climate action can be anchored at the climate conference: A group of countries from developing and industrialized nations is exerting pressure to anchor the topic of emissions reduction prominently in the decision text and thus in the UNFCCC process. What they call “more effective climate protection in the critical years before 2030”, however, is meeting with resistance from many emerging economies. This is because they are opposed to having climate protection criteria prescribed in their upcoming climate plans (NDCs).

    The current texts, which were presented on Thursday morning, clearly show this division. In the proposal for the Mitigation Work Program (MWP), for example, hardly any link is made to the upcoming NDCs – but it is emphasized that the countries draw up their plans independently and that the link to the NDCs is voluntary and each country can decide for itself. In turn, the proposal for the “UAE Dialogue“, which is intended to follow up on the results of last year’s Global Stocktake (GST), contains four different options on this issue, which are far apart.

    The reports in the COP29 plenary session on Thursday afternoon were correspondingly controversial. Countries such as Australia, the EU and Germany opposed the text, calling it “unacceptable” and “a big step backwards”. A link between the GST results and the criteria for the NDCs is needed, the text presented “cannot be our answer to people’s suffering”, said Germany’s climate envoy Jennifer Morgan. Spokespersons from developing countries, on the other hand, accused the industrialized countries of imposing policies against the Paris Agreement and not providing financing for climate protection.

    Emission reduction in NDCs voluntary

    The background is that while the term financing appears more than a dozen times on the COP agenda, emissions reduction, as mitigation, has hardly been anchored there so far. This means that the central question of the climate crisis is hardly ever officially discussed – namely, how to reduce greenhouse gas emissions as quickly as possible.

    Since the MWP was adopted at COP26 in Glasgow, it has never really become clear what concrete consequences it will have. This is because, according to the Paris Agreement, countries are not required to reduce emissions – they specify them voluntarily in their NDCs. However, the NDC synthesis report from the UN Climate Change Secretariat confirms every year that this ambition is not enough to achieve the Paris goals: According to this, the current NDCs only envisage that global emissions will only fall by 2.6 percent between 1990 and 2030. However, they would have to fall by around 45 percent in order not to abandon the 1.5-degree target.

    As it was already clear before the Paris Agreement that the countries’ NDCs would not be sufficient, there was a proposal to oblige the countries to adopt strict NDCs. If these were then insufficient, they were to be sent back to the countries for improvement. This was not feasible. Now the rule is: each country only does what it wants and can do.

    Nevertheless, according to the Paris Agreement, the Global Stocktake is to shape the new NDCs, which are to be submitted by February. The resolution on the GST at COP28 in Dubai, on the other hand, stipulated, among other things, that countries should “transition away” from fossil fuels, triple renewables, double efficiency, and limit the destruction of forests. The industrialized countries would also like these goals to be anchored in such a way that they shape the NDCs in the countries. It could look like this:

    • The NDCs could explain how they intend to implement the goals of the GST (transition away, renewables, efficiency).
    • New and far-reaching demands could be formulated in the NDCs – such as a coal phase-out with an end date.
    • The countries could adopt some of the non-binding pledges of the COP29 presidency and align the NDCs with them (expansion of grids and storage, “green corridors” for renewable energies).
    • They could limit themselves to repeating the Dubai language – and thus pass it off as progress that there is no regression behind Dubai.

    No regression is apparently the toughest possible demand for the EU this year, as Climate Commissioner Wopke Hoekstra announced at COP29. We must not fall behind the language from Dubai, was his mantra before the final draft text was published on Thursday morning. There was no mention of new demands on mitigation. Confirmation of the GST results seemed to be the maximum achievable in Baku anyway. Now that, according to Hoekstra, the proposed text is going “in the opposite direction”, the Commissioner is making demands for “enhancement and improvement” in the implementation of the GST targets.

    G77 does not want an obligation to reduce emissions

    On behalf of the G77 and China, the Bolivian delegation leader Diego Pacheco opposed the inclusion of emissions reductions in the final documents. For him, the industrialized countries only want to distract attention from the fact that they are not prepared to make concessions on finances. Furthermore, “these are measures that tell other countries what to do and interfere with their policies”, Pacheco told Table.Briefings. This is a violation of the Paris Agreement.

    Pacheco also rejects the linking of the results of Dubai (transition away…) with the NDCs, which are due next February 2025. It would not simply be a repetition of the Dubai consensus if the individual country NDCs were aligned with it. In Dubai, the goals of expanding renewables, efficiency and phasing out fossil fuels were aimed at the global community – and not specifically at individual countries in their current NDCs. And when it comes to implementing the Dubai resolutions, the industrialized countries must lead the way, as is emphasized throughout the process. However, the industrialized countries are not demanding that all countries implement the Dubai decision in their NDCs – but that they make it clear how they intend to align their own plans with the 1.5-degree target in light of these decisions.

    In the negotiations in Baku, mitigation is not only important in itself, but also one of the most important negotiating chips. In order to achieve a balanced agreement, concessions by industrialized countries on the financial target should be combined with progress on mitigation. The success of COP29 will depend on where exactly the possible compromises lie. With Lukas Knigge

    • COP28
    • COP29
    • Fossile Brennstoffe
    • Mitigation

    News

    Loss and Damage: Why New Zealand wants to pay Vanuatu millions

    New Zealand wants to contribute four million New Zealand dollars ($2.35 million) to the establishment of a loss and damage fund on the island state of Vanuatu. This was reported by the New Zealand news portal Newsroom. The deal is due to be signed next week. Vanuatu estimated in 2022 that the island state would need $177 million over the next decade to respond to damage and losses. According to the New Zealand delegation, the new fund for Vanuatu is another “piece in the mosaic” of funding for damage and loss.

    New Zealand has also pledged money for the international “Loss and Damage” fund agreed at COP27, namely around six million US dollars. So far, this fund has been completely underfunded. Last year, the countries pledged around $675 million for this purpose at COP28; this year, only $85 million has been added so far. However, the need is estimated to be at least hundreds of billions. kul

    • COP28
    • Loss and Damage
    • Pacific
    • Vanuatu

    Mittelplate: New lawsuit against oil platform in the Wadden Sea

    The Mittelplatte oil platform has long been a thorn in the side of conservationists: Surrounded by the Schleswig-Holstein Wadden Sea National Park, within sight of the bird sanctuary island of Trischen, crude oil has been extracted since 1987, initially by ship and now transported ashore via a pipeline. Extraction in the national park is permitted because the platform was approved before the national park was established. After earlier lawsuits against the oil extraction were unsuccessful, Deutsche Umwelthilfe (DUH) is now making a new attempt to stop it legally.

    The association initiated summary proceedings on Thursday. It is directed against the approval of the main operating plan, which must be regularly extended to continue oil production. The application for an immediate halt to production is based on the fact that an impact assessment was never carried out for the platform per the Flora-Fauna-Habitat Directive (FFH). This directive only came into force when the platform was already in operation. However, DUH lawyer Remo Klinger argues that there is no unrestricted grandfathering. The assessment must also be carried out retrospectively “if it cannot be ruled out that the likelihood or risk of deterioration of habitats or disturbance of species exists as a result of the implementation or continuation of such a project”.

    In addition to the protection of the Wadden Sea, the environmental organization also justifies its action against Mittelplate with climate action. “In terms of climate policy, Germany can only retain its international credibility if the North Sea and the Wadden Sea UNESCO World Heritage Site become fossil-free as quickly as possible,” says Constantin Zerger, Head of Energy and Climate Protection at DUH. mkr

    • Umweltschutz

    Industrialized countries: How climate finance brings economic benefits

    “An ambitious new climate finance target is entirely in the self-interest of all nations, including the largest and richest.” This statement by UNFCCC Executive Secretary Simon Stiell is confirmed by a new study by Imperial College London. It concludes that it is “not only fair, but also in the economic interest of industrialized countries” to provide climate finance on a large scale to developing countries.

    In their paper, finance and economics professor Patrick Bolton and visiting assistant professor of finance Alissa M. Kleinnijenhuis estimate the “inner quantum” of public subsidies or comparable forms of climate finance needed to decarbonize the energy sector in developing countries at $255.9 billion per year. The additional “external quantum”, which includes private funding, amounts to $957.9 billion per year. If the industrialized countries were to provide this “inner quantum”, they could derive great economic benefits from it, according to the paper.

    Bolton and Kleinnijenhuis recommend aligning the new NCQG financial target with the 1.5-degree limit. To this end, the NCGQ must “focus on replacing fossil fuels“, which includes both the opportunity costs of early fossil fuel decommissioning and the investment costs in renewable energy to keep pace with the growth in energy demand. Negotiating positions at COP29 that contradict this would “ultimately work to the economic disadvantage of industrialized countries and to the detriment of least developed countries, small island states and other developing countries”. ae

    • NCQG

    COP29: Over 50 scientists call for action to combat the climate impact of contrails

    Climate researchers from around the world have called for decisive action against aircraft contrails. In an open letter published on the fringes of the World Climate Conference in Azerbaijan, the more than 50 signatories call on politicians to finally take the problem seriously and take action. The Intergovernmental Panel on Climate Change (IPCC) recognized the climate impact of contrails 25 years ago. Since then, however, far too little has been done.

    Contrails have as much impact on the climate as CO2 emissions from air traffic

    Studies show that contrails contribute at least as much to global warming as CO2 emissions from air traffic. The scientists therefore consider a number of measures to be necessary. In addition to further research, these include the establishment of a monitoring system and large-scale pilot projects so that mitigation measures can be implemented as soon as they are available. The public and passengers should also be made more aware of the issue.

    According to a recent study, only three percent of all flights cause 80 percent of global warming through contrails. More than half of this could be reduced by 2040 simply by changing flight routes. The resulting benefit for the climate would be at least 15 times greater than the additional CO2 emissions of longer flight routes, according to the study. For a route from Frankfurt to Washington, the additional costs per flight and passenger would amount to less than four euros.

    Changing flight routes is a simple way to stop global warming

    “Preventing contrails has proven to be one of the most easily achievable options to stop the rise in global temperatures,” says Anthony Patt, Professor of Climate Policy at ETH Zurich and one of the signatories of the open letter. However, as air traffic must be strictly regulated for safety reasons, even minor changes to flight routes require “coordinated government leadership“. ch

    • Klimaforschung

    Climate.Table Editorial Team

    CLIMATE.TABLE EDITORIAL OFFICE

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