Baku: Developing countries have clarified that expanding the contributor base to include high income, developing countries would violate the provisions of the Paris Agreement, countering one of the arguments of developed countries concerning the New Collective Quantified Goal (NCQG).
NCQG is the new climate funding target, the money the developed world will give to the developing world to support their climate actions after 2025. It is meant to build on the $100 billion a year funding that the developed world agreed to give the developing world in 2009, but which it finally did (depending on how it is calculated), in 2022.
Developing countries are clear that with several proposals to expand contributor base being discussed, it is important to understand that what developing countries, especially China and others may contribute in South-South solidarity is outside the ambit of NCQG.
“It is voluntary and there is no obligation on developing country parties to contribute to NCQG. We are here to discuss NCQG under Paris Agreement. The Agreement very clearly states that money will flow from developed to developing countries. We are not here to renegotiate that,” a developing country negotiator said on Wednesday morning.
Negotiators said there is clearly an effort by the developed countries to deflect responsibility. “They are trying to deflect responsibility from paying up climate finance which has not been fulfilled since 2009. Voluntary contributions are outside this climate finance obligation,” a second negotiator added.
There has been talk of China becoming a donor and India not needing climate finance support anymore.
“There is no debate over whether India is a developing country or not. Please look at India’s per capita income and emissions. They are several times lower than the world average. In fact, there is no ask for India to join the contributor base,” said a negotiator for a developing country.
“While developed countries recognize their responsibility to lead, they argue that other countries with the ability to provide climate finance — some of whom already invest in climate action in developing nations — should also transparently contribute to a new goal, due to their relative wealth and emissions profiles,” wrote Melanie Robinson, Global Director, Climate, Economics and Finance, World Resources Institute on Wednesday.
“As mentioned earlier, one way for the new goal to include new contributors would be to count all financial flows from the MDBs rather than just those from developed countries. But regardless of the approach taken, it is important to developing countries that contributing to a new climate finance goal would not change their development status,” she wrote.
During the stocktake plenary on Wednesday, the Like Minded Developing Countries (LMDC, a grouping that includes India) said the $ 200 to 300 billion NCQG quantum being discussed informally and expansion of contributor base are both redlines.
“This is unfathomable. And there too, these meagre figures are being tied to contributor base discussions. We will not accept a renegotiation of the Paris Agreement. This is a super red line,” said Diego Pacheco, spokesperson of LMDC.
Three proposals on quantum of NCQG have been discussed formally in negotiations, Chris Bowen of Australia informed the COP29 Presidency during the stocktake on Wednesday. But the break-up of sources (public/private/in grants/loans) in them is not clear.
“We’ve heard three different proposals for the provided quantum of $900 billion, $600 billion and $440 billion. Many mentioned that it’s important that whatever figure we land on, it be both ambitious and achievable… Many countries say that they need both provided and mobilised together under one quantum, not separate targets,” Bowen said.
COP29 negotiator Yalchin Rafiyev said new draft texts on New collective Quantified goal, Just Transition Work Program and Mitigation Work Program, which are concise and with fewer options will be published by midnight on Wednesday. Rafiyev also said the COP29 Presidency has not started drafting any cover text from Baku.
Developing countries are seeking $1.3 trillion a year.
But, observers said a package of five texts is expected out of Baku.
Following the release of new texts, parties will reflect on the drafts before they are finalised on Friday when COP29 is officially scheduled to close. These texts include the NCQG, Just Transition Work Program, Mitigation Work, Adaptation among others. Thursday onwards, UN Secretary-General Antonio Guterres is expected to be in Baku to work with parties and attend key bilaterals to support the landing of the package.
While redlines were clear, some points of consensus may emerge on Thursday, observers said. For example, there is a discussion on an “onion layered” approach to contributor base based on article 9.1, 9.2, 9.3 and 9.5 of the Paris Agreement.
Article 9.1 states: “Developed country Parties shall provide financial resources to assist developing country Parties with respect to both mitigation and adaptation in continuation of their existing obligations under the Convention.”
While article 9.5 states: “Developed country Parties shall biennially communicate indicative quantitative and qualitative information… to be provided to developing country Parties. Other Parties providing resources are encouraged to communicate biennially such information on a voluntary basis.”
The G77 +China, African Group of Negotiators and LMDC were also clear that any contribution by developing countries should be voluntary. They, however, scoffed at the quantum numbers being discussed. When asked how would they respond to a quantum of $200 billion, spokespeople of all three groups laughed and asked: “Is it a joke?”
“Even the Adaptation Gap reports says the gap in financing adaptation is $400 billion. So, this quantum cannot even respond to that,” said Ali Mohamed, AGN Chair.
Adonia Ayebare, chair of G77, said its very clear in the Paris Agreement that finance will flow from developed countries to others. “We can look at another layer of voluntary contributions for example.”
“The G77 and China communicated their needs transparently. We specified exact quantum and quality of financial support required ($1.3 trillion per year and most in grants).
There is noticeable absence of detailed plans from developed countries. This complicates progress and undermines negotiation process. It also heightens uncertainty and urgency of the situation. We have strong hope for forthcoming text to clearly define financial commitments. Detailing amount, quality, and mechanism for delivery is crucial,” Ayebare said.
Linda Kalcher, executive director, Strategic Perspectives, a Brussels-based think tank, said, “This meeting is only going to get unlocked if the EU leads the G7 countries with a strong offer, the EU is best placed to do so.”
