- Global transfers to developing countries rose from US$22 billion in 2021 to US$28 billion in 2022.
- Even achieving the Glasgow Climate Pact’s goal of increasing exchange rates to at least US$ 38 billion by 2025 would reduce the economic gap of US$ 187-359 billion by about 5 percent.
- In addition to providing more funding and implementation to solve the growing climate problems, more efforts are needed in energy production and technology transfer.
Nairobi, November 7, 2024 – As climate disasters escalate and hit the world’s most vulnerable people, a Adaptation Gap Report 2024: Come hell and high waterfrom the United Nations Environment Program (UNEP), considers that countries should significantly increase their efforts on climate change, starting with a commitment to economic action at COP29.
Global warming is approaching 1.5°C above pre-industrial levels, and the latest UNEP estimates Emissions Gap Report putting the world on track for a dangerous rise of 2.6-3.1°C this century without immediate and significant cuts in greenhouse gas emissions. The report, released shortly after the COP29 talks to be held in Baku, Azerbaijan, shows that there is an urgent need to change the course of this decade in order to deal with the increasing challenges. But this is hampered by the huge gap between financial needs and the international financial system for people’s transformation.
UN Secretary-General António Guterres said: “Vulnerable people are the most affected. And the taxpayers are the ones behind the law. Even those who spend all this – especially the fossil fuel companies – get huge profits and subsidies.”
“We need developed countries to increase the investment of at least $ 40 billion per year by 2025 – an important step to close the economic gap. We need to open a new economic goal at COP29,” he added.
Global remittances to developing countries increased from US$22 billion in 2021 to US$28 billion in 2022: the largest and relative annual increase since the Paris Agreement. This shows the progress of the Glasgow Climate Pact, which encouraged developed countries to double the investment in developing countries from about US$ 19 billion in 2019 by 2025. It is estimated that about US$ 187-359 billion per year, about 5 percent.
“Climate change has already devastated communities around the world, especially the poorest and most vulnerable. Hurricanes are destroying homes, wildfires are destroying forests, and land degradation and drought are destroying landscapes,” said Inger Andersen, UNEP Director-General. “People, Their lives and livelihoods are at risk from climate change. Without action, this is a reflection of our future and why the world should not think about adapting, now.”
As developing countries face more and more damage, they are already suffering from an increase in debt. Fair and just reform, including equity and justice, is more important than ever. The report calls on countries to advance their goals by adopting a new, concrete goal for climate finance at COP29 and include tools for change in their climate pledges, or nationally determined contributions, which are due early next year before the COP30 in Belém, Brazil.
Delays in planning and implementation
In terms of planning, 171 countries now have at least one tool to prepare for national change – for example, a plan, policy or strategy – in place. Of the 26 countries that do not have a national planning instrument, 10 do not show that they are developing; seven of these countries are conflict-affected or fragile countries and will need appropriate support if the UAE Framework for Global Climate Resilience’s goal of planning is to be met by 2030. and mixed, which shows the need for dedicated support to ensure that planning leads to action in these situations .
Actions that change are gradually increasing, but that is not related to the difficulty. In addition, the analysis of the projects implemented with the support of the funding agencies under the UN Framework Convention on Climate Change (UNFCCC) shows that almost half are either unsatisfactory or cannot be sustained without the funding of the project in the long run. Countries are showing progress in implementing their NAPs but have found that the scale and pace of change is insufficient in relation to climate risks. Overall, more efforts will be needed to achieve the goal of the UAE Framework for Global Climate Resilience.
Economic growth
Given the magnitude of the problem, bridging the economic gap will also require new ways to generate additional income. Strong resources, innovative strategies and financial instruments are essential for unlocking transitional capital, both for the public and private sectors.
Things that can help government agencies include the establishment of funds and funding mechanisms, climate economic policy and climate budget policy, national development policies and medium-term spending policies, and financial management policies. This can be supported by the reforms being proposed to international financial institutions and international development banks.
Private sector resources include new strategies and tools that aim to leverage the financial risk of the private sector using public funds. This can be supported by exchange accelerators and platforms.
Transitional funding also needs to shift from fixed, incremental, and project-based to predictable, creative, and flexible, otherwise it will not provide the scale or types of transition needed. However, this requires action in areas where access to funds is difficult: to support this, there is a need to use international funds more wisely.
In addition, the question of who pays for the change is not fully answered. In most financial arrangements, the final balance of payments is provided by developing countries; this can help to eliminate economic disparity, but it does not correspond to the principle of positions that are similar but different in their skills, or it is a waste of money.
Creativity is technology
In addition to finance, there is a need to promote capacity building and technology transfer to improve performance – which is in line with the COP29 strategic focus.
Recommendations on capacity and technology are almost ubiquitous in the UNFCCC text, particularly in the areas of water, food and agriculture. However, efforts to meet these needs are often inconsistent, expensive and short-term. There is also little evidence that these efforts are benefiting underprivileged groups. There are several factors that limit the effectiveness of technology. Some of the most common are economic and financial problems – such as high cost of living, difficulty getting credit, and laws and regulations that require home support policies.
The report makes recommendations for improvement in this regard:
- Actions should strengthen existing infrastructure, emphasize technology and future trends, and focus on gender equality and social inclusion.
- Stronger evidence is needed, including evidence from assessments and evaluations of current strengths and needs, which approach work, and its actual costs.
- Capacity building and technology change plans should support changing sectors, scales and development requirements.
- Adaptation strategies should be developed based on a comprehensive understanding of needs rather than simply pushing other technologies, making them part of broader development strategies.
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