The impacts of climate change have become increasingly severe, with their intensity proving more irreversible and unpredictable than ever before. This has led to a heightened call for the operationalization of Loss and Damage mechanisms during COP29 as the most vulnerable communities’ representatives call for $1.3 Trillion.

These climate shocks leave many vulnerable communities facing devastating losses, including livelihoods and even lives. COP29 has been widely referred to as the “finance COP” due to the ambitious financial outcomes anticipated.

In recent weeks, various groups have convened to strategize on securing sustainable financing options that avoid exacerbating debt burdens. African Ministers met under the auspices of AMCEN in Abidjan, while 45 least developed countries (LDCs) gathered in Lilongwe, Malawi. These conventions highlight the crucial need for financing adaptation and mitigation measures in Africa to enable a just transition towards climate resilience.

Following the establishment of a new financing model, the New Collective Quantified Goal (NCQG), African ministers under AMCEN have called on wealthy nations to mobilize at least $1.3 trillion annually for developing countries.

Ali Mohamed, Chair of the African Group of Negotiators on Climate Change (AGN), stated that in preparation for COP29, the Africa group is prioritizing ambitious climate finance outcomes.

He emphasized a particular focus on an ambitious NCQG outcome based on the evolving needs reflected in developing countries’ Nationally Determined Contributions (NDCs), National Adaptation Plans (NAPs), and other national climate planning instruments.

COP29 is expected to deliver a financing deal geared towards achieving the goals set in previous COPs in Glasgow, Sharm el-Sheikh, and Dubai, AMCEN Ministers noted.

A key issue raised is the need for responsiveness to the evolving needs of countries’ climate action plans, including their NDCs and NAPs, while reflecting the outcomes of the global Stocktake and the latest scientific and technological advancements.

Trillion-Dollar Climate Finance

Ministers have stressed that achieving their climate goals requires at least $1 trillion in climate finance. They are demanding that the new climate finance goal be science-based, reflecting developing countries’ actual needs through increased public finance, primarily delivered as grants. They also call for easier access to concessional loans.

Africa, despite its vast natural and human capital, remains a climate hotspot experiencing devastating impacts. Evans Njewa, Chair of the Least Developed Countries Group, emphasized the need for COP29 to deliver a bold commitment to addressing climate change, stating that it’s not just about promises but providing the necessary resources to protect vulnerable communities.

Concessional loans and grants are considered crucial, particularly for adaptation and addressing loss and damage, as it is wealthy nations that have historically contributed most to greenhouse gas emissions.

Iskander Erzini Vernoit, Director of the Imal Initiative for Climate and Development, echoed this sentiment, noting that African negotiators are calling for $1.3 trillion per year in the new climate finance goal.

Ministers from both LDCs and the African Group of Negotiators on Climate Change (AGN) have urged international financial institutions (IFIs) and multilateral development banks (MDBs) to reform their funding approaches.

They advocate for responsiveness to Africa’s needs, revised finance terms, and greater openness to debt restructuring and relief, enabling climate and development finance without exacerbating debt burdens.

“Our position includes a quantum of $1.3 trillion per annum by 2030; quality of finance informed by criteria including debt sustainability, cost of borrowing, and a significant portion from public sources, emphasizing grant and highly concessional finance; and transparent mechanisms for accountability,” stated AGN Chair, Ali Mohamed.

Keeping the Finance Promise

The Loss and Damage fund, revitalized by the New Collective Quantified Goal (NCQG), is crucial for supporting vulnerable nations. However, the question of financial responsibility remains a contentious issue.

There is a strong call for implementing the principle of common but differentiated responsibilities and respective capabilities (CBDR&RC), acknowledging each country’s varying abilities and responsibilities in addressing climate change.

Amos Wemanya, Greenpeace Africa’s Responsive Lead, urged wealthy nations to hold polluters, particularly the fossil fuel industry, accountable for the losses and damages suffered by communities. He emphasized that Africa needs climate finance to invest in renewable energy, ecosystem protection, land restoration, and food sovereignty.

Both AMCEN and LDC Ministers want the Loss and Damage Fund and the Santiago Network (which connects vulnerable countries with technical assistance providers) to be urgently operationalized and capitalized. African Ministers have also called for reconsidering the decision to host the Santiago Network in Geneva rather than Nairobi, while LDC Ministers are pushing for a sub-goal on loss and damage within the NCQG.

The Ministers are demanding that the Global Goal on Adaptation (GGA) be fully operationalized to ensure adequate adaptation responses, particularly focusing on finance, capacity building, and technology transfer. The estimated adaptation finance needed annually is $360 billion, significantly exceeding the $18 billion available in 2019.

Joab Okanda, a climate and energy policy expert, emphasized the need to avoid repeating the failures of the unmet $100 billion goal by 2020. He stressed that COP29 in Baku must ensure adaptation finance is scaled up to at least $360 billion annually in grant equivalents.