Fiona Nanna, ForeMedia News

5 minutes read. Updated 6:00AM GMT Thurs, 1August, 2024

The European Union (EU) is preparing to intensify pressure on emerging economies, particularly China, to contribute significantly to climate action funding during the upcoming COP29 climate conference in November. This strategic move comes as part of a broader effort to address the financing challenges faced by developing nations grappling with the impacts of climate change, according to an exclusive document reviewed by POLITICO.

The central issue of this year’s United Nations Climate Conference, COP29, revolves around the financing necessary to assist developing countries in reducing greenhouse gas emissions and adapting to the adverse effects of global warming. The existing funding commitment of $100 billion per year, which extends until 2025, is set to expire, necessitating the establishment of a new financial target at COP29. This current pledge, originally agreed upon in 1992 when the UN climate treaty was formulated, is primarily supported by industrialized nations. The EU, as the largest contributor, intends to uphold its funding obligations but seeks to broaden the contributor base to include nations that have achieved substantial economic growth over the past three decades.

The draft of the EU’s COP29 stance, dated July 26, emphasizes the need for expanding the funding contributor base to reflect the evolving capabilities of countries since the 1990s. The EU’s draft position articulates a call for all nations, particularly emerging economies, to contribute according to their financial capacities. This move is intended to enhance financial support for the most vulnerable countries and communities, demonstrating global solidarity.

While the draft does not explicitly single out any nation, European diplomats and officials have been vocal about urging China to step up its financial contributions. As the world’s second-largest economy and leading emitter of greenhouse gases, China’s involvement is seen as crucial. Last week, German climate negotiator Jochen Flasbarth indicated that increased funding from wealthy countries would be contingent on China’s financial participation.

Furthermore, the EU’s draft suggests a potential shift in focus, proposing that new funding be directed more selectively toward countries most affected by climate change, such as island nations and Least Developed Countries (LDCs). This approach contrasts with the previous broad inclusion of all developing nations. The EU document hints at a reevaluation of beneficiaries, aiming to prioritize those with the greatest vulnerabilities.

The debate over climate financing echoes last year’s contention regarding China’s refusal to contribute to a fund for communities affected by climate damage. Despite pressure from the U.S., EU, and other allies, China resisted, while the UAE became the first country outside the traditional donor group to contribute through an official UN fund, which raised approximately $655 million. The forthcoming negotiations in November will escalate the financial stakes, with developing countries proposing an ambitious $1 trillion annual target. European diplomats view this conference as an opportunity to challenge the outdated dichotomy between rich and poor nations.

In addition to China, other affluent Gulf states—such as Qatar, the UAE, and Saudi Arabia—are also expected to face pressure to increase their contributions. Singapore, too, may be targeted for its role in climate finance. The EU’s draft position underscores the necessity of private sector investments in achieving the new financial targets, emphasizing that national budgets alone cannot cover the required funding.

The draft, discussed by EU officials on Tuesday, remains subject to revisions before the COP29 summit begins in Azerbaijan on November 11. EU finance ministers are slated to finalize the funding aspect of the position on October 8, with the final draft being approved by the bloc’s environment ministers on October 14.

Backlinks:

  • EU’s COP29 Stance
  • China’s Role in Climate Finance
  • Developing Countries’ Climate Funding Needs
  • COP29 Conference Details