Climate 411

Loss and Damage Finance: the FRLD and Transforming Climate Finance Quality

By Juan Pablo Hoffmaister / Published: December 20, 2024

B4 FLRD Board meeting opening by Mrs. Maria Antonia Yulo-Loyzaga, Secretary of Environment & Natural Resources of The Philippines. Photo credit: Government of the Philippines

The newly established Fund for responding to Loss and Damage (FRLD) represents more than just another funding mechanism – it’s an opportunity to reimagine how climate finance can work better for countries already experiencing the extreme impacts of climate change.  

As the Fund prepares for its “start-up phase” in 2025, it has the potential to address longstanding quality issues that have kept climate finance from making positive climate impact, which are more important than ever as the international community gets for COP30 and to triple finance to developing countries, from the previous goal of USD 100 billion annually, to USD 300 billion annually by 2035 and secure efforts of all actors to work together to scale up finance to developing countries, from public and private sources, to the amount of USD 1.3 trillion per year by 2035. 

Here’s how:  Read More »

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Effective participation and engagement of Indigenous Peoples and Local Communities at COP29

By Bärbel Henneberger / Published: November 22, 2024
Juan Carlos Jintiach from the Global Alliance of Territorial Communities, speaking on direct access to finanance for Indigenous People at COP29. Photo by Bärbel Henneberger.

Juan Carlos Jintiach from the Global Alliance of Territorial Communities, speaking on direct access to finanance for Indigenous People at COP29. Photo by Bärbel Henneberger.

This post was authored by Bärbel Henneberger, Senior Partnerships Manager at the Environmental Defense Fund. 

On November 21, COP29 celebrated Indigenous Peoples and Local Communities (IP and LCs) as a thematic day in the Action Agenda of the Azerbaijani COP presidency. The day underscored the essential role of IP and LCs in safeguarding 80% of the world’s biodiversity and preserving 36% of intact forest landscapes.

To succeed in the fight against climate change, we must collaborate with IPs and LCs and respect their principles, culture, and methods while providing the support they need to further our shared conservation goals. We won’t succeed in conserving tropical forests without the partnership and leadership of IPs and LCs.

Climate conferences like COP29 offer a platform for IP and LCs to amplify their voices, and shape negotiations. It’s an opportunity for them to show the world how their efforts to conserve and sustainably manage their territories, which are some of Earth’s most important ecosystems, are critically important in the climate fight.

At COP29, IP and LC delegates spotlighted examples of effective participation in negotiations, policy frameworks, and innovative climate finance mechanisms. These efforts, though diverse, share a common goal: to embed Indigenous rights and knowledge systems into global climate action. Below are a few examples of Indigenous approaches to conservation efforts showcased during COP29. Critically, the world must continue to support, and learn from, these approaches well after the negotiations in Baku have ended.

Spotlight on LCIPP and the IP Caucus

Read More »

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What to watch in week 2 of COP29, from the finance conversation to critical sectoral action

By Christopher Dekki / Published: November 18, 2024

This blog was authored by Christopher Dekki, Manager, Global Engagement and Partnerships.

Hopefully, COP29 delegates savored every moment of the rest day here in Baku because week 2 is already off to a hectic start. As deep divides within the negotiations remain unbridged, Azerbaijan, the newly minted COP29 Presidency, will need to increase its efforts to ensure consensus within the process and deliver a meaningful outcome.  

Little progress made on the climate finance goal 

The core outcome of this COP, a New Collective Quantified Goal (NCQG) on Climate Finance for developing countries, stands on shaky ground as massive disagreements between the Global North and South are making it difficult for negotiations on the substance of the goal to take place in earnest. Nevertheless, the result of this process will have major implications for the ability of developing countries to transform their economies and societies and realize more ambitious climate action. With finance needs estimated to be $2.4 trillion per year by 2030 in developing countries alone, the COP negotiators must urgently step up action in this arena.  

While a great deal of attention has been placed on the quantity of money that should be provided, EDF has entered the finance fray by advocating for greater attention to quality – going beyond the raw numbers and ensuring systems are put in place to make the most of every dollar spent on climate action. It is critical for delegates to work together during week 2 to break the deadlock, and deliver a climate finance goal that is concessional, accessible, and impactful. The good news is that the latest text includes many provisions taking us in this direction, laying out options that can lay the foundation for better finance, and thus better outcomes for the climate. We need negotiators to come together around the best solutions.  

Making moves on carbon credits  Read More »

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Climate Finance and Accountability at COP29

By Leslie Labruto / Published: November 14, 2024
COP29 sign in Baku

COP29 sign in Baku. Photo by UNclimatechange via Flickr

 

Today, November 14, is Finance Day at COP29. We caught up with Leslie Labruto, EDF’s Managing Director for Sustainable Finance, about what she’s watching for at COP29, the United Nations’ climate change talks in Baku, Azerbaijan. Follow Leslie on LinkedIn.

Q: You’re in Baku for COP29. What key issues are on your radar?

A: The spotlight here this year is on scaling up climate finance for developing countries, and a need for redoubled global cooperation to achieve our shared climate goals. My team and I, along with the rest of the +Business team at EDF, are laser focused on working with the private sector to ensure climate and nature wins. A major focus at COP will be the establishment of a climate finance goal, called the New Collective Quantified Goal (NCQG), which will replace the $100 billion annual commitment that high-income countries pledged to deliver under the Paris Agreement. The NCQG could reach at least $1 trillion a year—a figure that better aligns with the financial gap that needs to be closed to address the climate crisis.

Developing countries need these funds to tackle climate change, transition to clean energy, and adapt to the impacts of climate change, and it’s crucial that the finance be provided in a way that’s just, equitable, and effective. Let’s not forget that those ‘wins’ in developing countries are good for everyone everywhere, since climate impacts are felt globally. Successful climate finance means more forests still standing, a larger climate workforce, more resilient food systems, more methane abated, and greater global renewable energy capacity. Because climate-related investments are needed to meet global goals and address inequitable impacts from past emissions, low-income borrowers should have access to concessional finance. The NCQG will not only scale up ambition but also support countries as they prepare to submit their updated climate commitments in 2025.

Q: You’ve emphasized both the quantity and quality of climate finance. What do you mean by “quality”?

A: While the amount of climate finance is essential, its effectiveness — its quality — is equally important. When we talk about quality, we mean ensuring that climate finance is structured to be concessional, accessible, and impactful. In the private sector, finance is tracked with metrics like profits and losses that communicate shareholder value. In climate finance, however, there is less accountability in terms of impact metrics.

Climate finance should leverage public and private investment to make rapid progress toward net zero emissions and benefit local communities. To make sure financing achieves this, we need a system that is accountable for being easy to access, impactful in tackling climate-related challenges, and affordable for borrowers.

Read More »

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At COP29, Article 6 must deliver on urgent finance for forests and Indigenous communities

By Pedro Martins Barata and sagarcia / Published: November 13, 2024

This blog was authored by Pedro Martins Barata, Associate Vice President, Carbon Markets and Private Sector Decarbonization and Santiago García Lloré, Senior Manager, IPLC & Conservation Partnerships, Forests

UN Climate Change, Kamran-Guliyev/ Flickr

At the start of COP29, negotiators in Baku secured a major breakthrough by agreeing on new standards for a UN-led global carbon market under Article 6 of the Paris Agreement, potentially unlocking billions in funding for climate projects.

But the terms of the standards are still flexible, meaning there’s a real chance to shape them to make sure the money goes where it’s needed most – like Indigenous Peoples and local communities who are fighting to conserve the planet’s last intact forests, known as high forest, low deforestation (HFLD) regions.

The stakes are higher now than ever, especially after the recent US election, which casts doubt on future public climate funding from one of the world’s biggest economies. In this uncertain landscape, carbon markets must step up to fund critical climate solutions, especially nature-based projects like forest conservation.

Read More »

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From Cali to Belèm: Finding Common Ground for Nature and Climate

By Milloni Doshi and Annie Mark / Published: November 8, 2024

This blog was authored by Milloni Doshi, Project Manager, Global Engagement and Partnerships and Annie Mark, Senior Director, Global Partnerships.

Photo by Milloni Doshi at COP16

The Conference of the Parties (COP) of the UN Convention on Biological Diversity (CBD) is a global meeting focused on conserving nature. Unlike the United Nations’ larger annual climate conferences, CBD meetings are usually smaller and have a specific focus: conserving and restoring biodiversity. In 2022, countries adopted the Kunming-Montreal Global Biodiversity Framework (GBF), a landmark plan aimed at halting and reversing biodiversity loss by 2030. Many call it the “Paris Agreement” for nature.  

This year’s COP16 took place in Cali, Colombia and was the largest yet. Although discussions moved slowly and ended without a final agreement, COP16 sparked important conversations about how nature and climate are deeply connected. This was a positive development on the “Rio Trio” —a partnership between the leadership of the UN three conventions on biodiversity, climate, and desertification. These pathway ideas may help shape future climate talks, including next week’s COP29 in Baku, Azerbaijan, and COP30 next year in Belem, Brazil.  

Pathway 1: Recognizing Indigenous Peoples and Local Communities (IPLCs) and Their Vital Role Read More »

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