UN Climate Change executive secretary Simon Stiell has said that the forthcoming COP29 in Azerbaijan must be a “stand-and-deliver COP“, reiterating the importance of climate finance to protect the global economy.
Steill was commenting at a virtual event hosted by the Brookings Institution, at which he underscored the need for robust climate finance as the world gears up for COP29. As he noted, climate finance is no longer a peripheral concern but rather central to global economic stability and environmental sustainability.
“We can only prevent the climate crisis from decimating all economies – including the largest – if every nation has the means to slash greenhouse gas pollution and boost climate resilience,” Steill noted, emphasising the need to move away from a “two-speed global transition. “So, we know trillions more are needed.
“Doing so is a crucial investment to protect the global economy, and will be a fraction of the costs every nation will pay if we allow the climate crisis to keep running rampant, devastating more and more lives and livelihoods every day, every week, every month and every year.”
Progress made to date
Stiell acknowledged significant progress in climate finance, noting that over a trillion dollars was invested in climate action last year—an impressive increase from a few hundred billion a decade ago.
As an example, in 2022, developed countries mobilised more than $100 billion in climate finance for developing nations, according to the OECD. However, despite these advances, Stiell noted that current funding levels fall dramatically short of what is required to tackle the climate crisis effectively.
“International climate finance must grow up, step up, and scale up, to meet this moment,” he added, noting the significance of the World Bank recently announcing more concessional lending for climate.
“This is good news. But incremental increases won’t lead to an exponential surge of investment and green growth. On climate finance, we have a need for speed, and without much larger scale, all economies will fail. So many countries are facing debt crises that amount to fiscal straight-jackets, making it near-impossible to invest in climate action.”
Debt relief
Stiell called for a greater focus on debt relief and the introduction of climate-related debt clauses to alleviate financial burdens. The G20 countries, as the largest shareholders of development banks, must advocate for adequate funding and support broader reforms in the international financial system.
“Under Brazil’s G20 leadership, climate and finance ministers have finally been brought together,” he added. “This essential collaboration must continue and be translated into clear outcomes.
“Progress on climate finance outside our negotiation process enables breakthroughs within it and vice- versa. If we fail at either, it could be a knock-out blow to crucial parts of the Paris Agreement.“
The role of climate finance
As COP29 approaches, Stiell stressed that climate finance is fundamental to safeguarding the global economy and protecting vulnerable communities – a move that will require new targets to be set.
“It’s not my job to prejudge what the new goal will look like. But it’s clear public finance must be at the core,” he noted. “As much of this finance as possible needs to be grant or concessional, and must be made more accessible to those who need it most.
“And we must make climate cash count, wherever possible leveraging more private finance and sending signals to financial markets that green is where the gains are.”
Geopolitical tensions
In conclusion, Stiell urged nations to focus on solutions that ensure the benefits of bold climate action, despite the current geopolitical tensions in the marketplace.
“In times like these, there is the temptation to turn inward,” he commented. “A delusional belief that what happens in my neighbour’s backyard is not my problem or my concern.
“If we go down this path, it will soon be game-over in the world’s climate fight. So let’s instead choose the game-changer path ahead – the one that recognises that bigger and better climate finance is entirely in every nation’s interests, and can deliver results everywhere.” Read more here. [Photo: Kiara Worth | UN Climate Change]
