The 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) will be held in Baku, Azerbaijan, starting on the 11th. ‘Financial resources’ is expected to be the biggest issue at this general meeting. This is because opinions between developed and developing countries are sharply divided on how and how to raise the financial resources needed to respond to and adapt to climate change.
According to the Ministry of Environment on the 5th, the core issue of COP29 is the ‘New Collective Quantified Goal (NCQG)’ (NCQG). The United Nations Framework Convention on Climate Change stipulates that developed countries, which are currently largely responsible for climate change, must provide financial resources to support climate action in developing countries. Climate action includes greenhouse gas reduction and climate change adaptation activities.
COP29. AP Yonhap News
Developed countries promised to donate $100 billion (about 137.8 trillion won) per year by 2020 at COP16 held in Cancun, Mexico in 2010, but failed to keep it. Afterwards, at COP21 held in Paris, France in 2015, it was decided to achieve the goal by this year.
In May of this year, the Organization for Economic Co-operation and Development (OECD) announced that as of 2022, the climate finance resources provided by developed countries to developing countries amounted to $115.9 billion (approximately KRW 159.8 trillion). Developed countries have kept their promises, but since the OECD tally includes both formal and informal, public and private financial resources, developing countries are not accepting it, saying it is an overestimate.
It is expected that there will be fierce competition between developed and developing countries over NCQG. The Standing Committee on Finance (SCF) under the United Nations Framework Convention on Climate Change recently released a report stating that developing countries need an annual investment of $500 billion (approximately KRW 689.3 trillion) to respond to climate change. However, developing countries want a ‘quantum jump in climate finance’ and provide the maximum ‘public funding’. They are requesting $1 trillion (approximately KRW 1,378.6 trillion) in financial resources and an additional $5 trillion (approximately KRW 6,892 trillion) in private finance.
There is also controversy over how much climate finance can be considered. Opinions are divided over whether or not to put the ‘Loss and Compensation Fund’, which was launched with difficulty at COP28, into climate finance.
Not only ‘how much’ but also ‘who’ will provide the financial resources is a subject of debate. Developed countries argue that the number of mandatory donors for climate finance should be expanded and that private investment should also be included in the finances, but developing countries counter that developing countries should emphasize the donor obligations of developed countries and expand climate finance, focusing on public finances.
Korea is not included in the ‘Annex II’ countries, which are advanced countries, when signing the Climate Change Convention, so it is not obligated to donate climate resources. However, the government has been making voluntary donations beyond that of mandatory donors. The government’s stance is that it will continue to make donations and play an active role in establishing the NCQG.
At COP29, detailed implementation guidelines for Article 6 of the Paris Agreement will also be discussed. Article 6 of the Paris Agreement is a provision that stipulates a ‘market-based approach’ so that the parties to the agreement can exchange greenhouse gas reduction performance. The ‘international reduction project’, in which developed countries carry out greenhouse gas reduction projects in developing countries and then recognize the performance as their own, is based on Article 6 of the Paris Agreement. Detailed implementation guidelines for Article 6 of the Paris Agreement must be established. Developing countries are focusing on enabling flexible operation of reduction projects, but developed countries are focusing on ensuring ‘environmental soundness and transparency’ of reduction projects, leading to intense discussions. It is expected.
As this COP29 is being held with the vision of ‘increasing motivation and promoting action’, it is expected that some countries will submit the ‘2035 National Greenhouse Gas Reduction Target (NDC)’ and ‘Biennial Transparency Report (BTR)’ early. Azerbaijan is urging the parties to the Framework Convention on Climate Change to submit an NDC in line with the Paris Agreement’s goal of maintaining the increase in global average temperature within 1.5 degrees compared to pre-industrial levels before February 10 of next year. Together with the United Arab Emirates (UAE), the previous COP host country, and Brazil, the next COP host country, we plan to submit an NDC in advance that meets the ‘1.5 degree path’.
Last year, the Intergovernmental Panel on Climate Change (IPCC) stated in its 6th Assessment Report that greenhouse gas emissions must be reduced by 60% by 2035 compared to 2019 to meet the 1.5 degree path. Azerbaijan plans to submit the BTR before COP29 and urge other parties to follow suit.
BTR is a report containing greenhouse gas emissions and absorption and the status of implementation of reduction goals according to the Paris Agreement, and must be submitted to the Secretariat of the United Nations Framework Convention on Climate Change every two years starting from the end of this year. As of the 31st of last month, Japan, Andorra, Guyana, and Panama have already submitted BTRs, and Azerbaijan and the United States are known to be planning to submit in time for COP29. The remaining countries, including Korea, generally plan to submit their BTR at the end of the year, which is the deadline under the Paris Agreement.
Reporter Cho Hee-yeon [email protected]
[ⓒ 세계일보 & Segye.com, 무단전재 및 재배포 금지]
