Experts recommend new, ambitious climate finance goal for Africa at COP29

As stakeholders look to Baku, the capital of Azerbaijan for the 29th annual United Nations (UN) Climate Change Conference of the Parties (COP29) talks come November, experts have called for a new goal requiring industrialized nations to go farther into their wallets to finance climate in Africa.

They called on developed countries to commit to the New Collective Quantified Goal (NCQG) a post-2025 climate finance goal and a successor to what the experts describe as the failed $100 billion annual commitment that was agreed upon by the industrialized nations at the COP15 in in Copenhagen, Denmark in 2009.

COP15 ended in acrimony and the $100 billion was later formally accepted at COP16 in 2010. It was meant to be achieved by 2020, but more than a decade after, experts say its objectives have not been achieved.

During a media briefing last week on the Africa’s perspective on the NCQG, experts said failure to meet the $100 billion goal for climate finance by 2020 has left developing countries filled with mistrust, frustration and skepticism and the continent’s needs and priorities have grown.

They said industrialized nations must now commit, at least $5.9 trillion, by 2030 to developing countries’ growing needs and priorities to finance adaptation, mitigation, the just transition, as well as loss and damage.

However, formal deliberations on NCQG have proven contentious since it was established during COP21 (or Paris Climate Conference),but experts think it is high time for its operationalization as without a finance goal, it would be challenging to organize the climate finance system, incorporate climate action into development, and plan Africa’s intervention design.

Iskander Erzini Vernoit, Director at the Imal Initiative for Climate & Development, a non-profit climate think-tank based in Morocco said commitments need to be made without political undertones. He said the United Nations Framework Convention on Climate Change (UNFCCC) regime in recent years has been unbalanced.

“As Africa and developing countries worldwide, we must be clear: we cannot continue participating in the UNFCCC process if we do not receive serious, new, and additional increases in finance to support our aspirations. Otherwise, it becomes a performative charade, unbalanced, unjust, and something history will not approve of,” the Climate and development expert said.

Why financial architecture hasn’t benefited developing countries

Julius Mbatia a Climate Finance Expert agrees the financial architecture has not benefited developing countries because it was not designed with their needs in mind.

He said financing for climate is different from financing for development or economic purposes. It requires specific principles, such as being additional to development finance and new, as climate change imposes an additional burden on developing countries with constrained economies

The $100 billion goal, Mbatia said, was a top-down political decision, but the NCQG offers an opportunity for a science-based approach, informed by science rather than just politics. “Transparency and accountability are crucial for effective climate finance. Developed countries should be held accountable for their contributions and mobilizations. There is also a need to distinguish between grants and loans, as grants are the most suitable form of climate finance for developing countries,” said Mbatia.

Experts say African countries should not passively accept the terms offered in global climate negotiations. Instead, they should demand more favorable financial terms and be prepared to withhold their Nationally Determined Contributions (NDCs) or boycott COP 29 if necessary. While this approach is risky and could marginalize Africa’s voice, Mbatia believes that it is essential for Africa to negotiate from a position of strength due to its abundant renewable energy resources and essential minerals.

He said the post-2025 finance goal must constitute a quantum that is commensurate with the needs of developing countries to fairly transition, support adaptation, tackle loss and damage, as well as set a low carbon climate-resilient path.

“The discussion on climate finance must focus on the needs of the African continent and be based on fair terms that reflect the realities on the ground. Grants and highly concessional financing are essential. Additionally, finance must be scaled to support not only local communities but also economy-wide approaches to ensure that economies continue to function amidst a climate crisis,” Mbatia said.

Developing countries require at least $400 billion annually for adaptation, loss and damage and $1.9 trillion for energy system investments according to scientific assessments.