UN climate conference in Glasgow: poorer countries insist on solidarity

Effective climate protection costs money. On the fourth day of the UN conference in Glasgow, therefore, it was all about financing issues. The poorer countries are demanding that the industrialized countries meet their obligations – in clear terms.

No effective climate protection without financial commitments: This formula should be familiar to the negotiators in Glasgow, Scotland, by now. Money is also one of the sticking points at this year’s World Climate Conference. With urgent appeals, representatives of poorer countries today reminded industrialized nations of their financial promises – and of what it means for them if not enough is done to stop global warming.

“We can’t wait any longer,” said Sonam Phuntsho Wangdi from the South Asian state of Bhutan, speaking for a group of developing countries. “We have contributed the least to this climate crisis.” The 46 countries in the group, in which around one billion people live, are responsible for only one percent of global climate-damaging emissions. At the same time, they are already suffering from climate change on a daily basis. “We are dependent on the decisions that are made here.”

“It is too little and too late”

The representative of the Least Developed Countries expressed his disappointment that the industrialized countries are late in meeting the promise made in the Paris Agreement of 2015 to provide 100 billion dollars each year to deal with the climate crisis. “It’s too little and too late,” said Wangdi. Actually, the sum should have been flowing into the severely affected countries since 2020. It is now expected to be reached for the first time in 2023.

The German Secretary of State for the Environment, Jochen Flasbarth, was optimistic that the industrialized countries could come “very close” to the 100 billion dollar target or achieve it in the coming year. The target will “definitely” be reached in 2023 and exceeded in 2024 and 2025 in order to compensate for the previous underfunding. The industrialized countries proved “that they keep their promise.”

Environmental associations demand climate justice

The meeting of heads of state and government in Glasgow also brought new commitments: Great Britain, Spain, Japan, Australia, Norway, Ireland and Luxembourg pledged to increase their climate finance. Important to know: The funds from the climate finance pot consist of around 70 percent loans, only 30 percent are grants.

Environmental associations and the developing countries themselves are calling on the industrialized countries to pay even more than before for the losses and damage caused by climate change. Climate justice must be the focus of the conference, affirmed Harjeet Singh of the Climate Action Network, which includes more than 1500 organizations from all over the world. “The people who are already suffering today also need support today.”

Finance industry wants to mobilize $ 130 trillion

The global effort is also about making more private finance available. “It is a fact that we need the private sector to create this great transformation,” said UN climate chief Patricia Espinosa. The financial industry set an example here: More than 450 financial companies from 45 countries announced their intention to mobilize 130 trillion dollars in private capital to make the world climate neutral by 2050.

The Canadian bank manager Mark Carney in Glasgow, who heads the so-called Glasgow Financial Alliance for Net Zero, recalled that the said capital was still five trillion dollars two years ago.

Many announcements, implementation open

Climate expert David Ryfisch from Germanwatch described the advance of the financial companies as “potentially transformative”. Ryfisch sees indications that a fundamental rethinking has begun in the financial sector. The financial world has meanwhile become a “driving force behind the implementation of the Paris Agreement”. The “effectiveness” of the commitments has yet to be shown.

Laurent Babikian from the Carbon Disclosure Project organization made a similar statement. The project examines announcements by banks, funds and companies to determine whether they are in line with the Paris Agreement. “It’s great to see net zero financial announcements growing rapidly. But we still have to see them for what they are: announcements,” said Babikian. The reality so far looks different: A new analysis shows that less than 0.5 percent of global investment funds are in line with the Paris climate target.