Climate Action or still just Climate Speeches?

 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗔𝗰𝘁𝗶𝗼𝗻 𝗼𝗿 𝘀𝘁𝗶𝗹𝗹 𝗷𝘂𝘀𝘁 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗦𝗽𝗲𝗲𝗰𝗵𝗲𝘀?

𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 (Part 1 of 2)

𝙉𝙤𝙩𝙚:

Please do read basic terminologies before reading this article.

Such as- COP, UNFCCC, Kyoto Protocol, Paris Agreement 2015 (especially objectives- global warming temperature goals, adaptations, finances, Article 6), NDCs, Glasgow 2021, 17 SDGs, etc.

Let’s deep dive, if already aware.

1st important key 𝙩𝙖𝙠𝙚𝙖𝙬𝙖𝙮 from recently concluded COP 29 at Baku, Azerbaijan- NCQG.

-COP 29 adopted the New Collective Quantified Goal (𝗡𝗖𝗤𝗚).

-A new financial goal designed to target developing countries in their climate actions post-2025.

-Central focus being climate finance (a key element of the Paris Agreement, 2015).

𝙆𝙚𝙮 𝙖𝙨𝙥𝙚𝙘𝙩𝙨 𝙤𝙛 𝙉𝘾𝙌𝙂:

𝟭. 𝗧𝗿𝗶𝗽𝗹𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗖𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁: Developed countries to mobilize USD 300 billion per year for developing countries by 2035 from the previous goal of USD 100 billion per year.

𝟮. 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻 𝗼𝗳 𝗘𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗲𝘀: For the first time, the NCQG encourages voluntary financial contributions from wealthier developing countries, such as China and Gulf states, recognizing their growing economic capabilities.

𝟯. 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗦𝗲𝗰𝘁𝗼𝗿 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁: The goal encompasses an 'additional layer' aiming to mobilize up to USD 1.3 trillion per year by 2035, primarily from private financing sources, to support climate initiatives.

𝙉𝙚𝙜𝙖𝙩𝙞𝙫𝙚𝙨:

1. UNFCCC decided to mobilise 𝗨𝗦𝗗 𝟭𝟬𝟬 𝗯𝗻 𝗯𝘆 𝟮𝟬𝟮𝟬.

Subsequently extended to 𝟮𝟬𝟮𝟱.

Now successfully pushed to 𝟮𝟬𝟯𝟱.

2. Actual estimated amount of 𝗨𝗦𝗗 𝟭.𝟯 𝘁𝗿𝗶𝗹𝗹𝗶𝗼𝗻 but only 100 bn dollars tripled to 300 bn dollars. So, a highly inadequate amount.

3. 𝗜𝗻𝗱𝗶𝗮 has rejected NCQG on the following grounds:

i. 𝗜𝗻𝘀𝘂𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝘁 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗖𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁- “too little too distant”.

ii. 𝗟𝗮𝗰𝗸 𝗼𝗳 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝘃𝗶𝘁𝘆- doesn’t reflect the priorities of the Global South.

iii. 𝗔𝗿𝘁𝗶𝗰𝗹𝗲 𝟵 𝗼𝗳 𝘁𝗵𝗲 𝗣𝗮𝗿𝗶𝘀 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁- India emphasized that developed countries have a greater responsibility in mobilising climate finance.

When it comes to speeches, there are great speeches from the leaders of the developed world. But when it comes to finance, their lips are sealed and it is always in the near future- which might never arrive.

𝗖𝗮𝗿𝗯𝗼𝗻 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 (Part 2 of 2)

2nd important key 𝙩𝙖𝙠𝙚𝙖𝙬𝙖𝙮 from recently concluded 𝗖𝗢𝗣 𝟮𝟵 at Baku, Azerbaijan- Carbon Market

-Adoption of the New Collective Quantified Goal (NCQG).

-Detailed discussion on Article 6.2 and Article 6.4 of the Paris Agreement, 2015 (𝗖𝗮𝗿𝗯𝗼𝗻 𝗠𝗮𝗿𝗸𝗲𝘁𝘀)

𝙆𝙚𝙮 𝘼𝙨𝙥𝙚𝙘𝙩𝙨 𝙤𝙛 𝘼𝙧𝙩𝙞𝙘𝙡𝙚 6 - It enables countries to collaborate on climate action through market and non-market approaches.

𝟭) 𝗔𝗿𝘁𝗶𝗰𝗹𝗲 𝟲.𝟮: Countries to cooperate on achieving their climate targets through 𝗯𝗶𝗹𝗮𝘁𝗲𝗿𝗮𝗹 𝗼𝗿 𝗺𝘂𝗹𝘁𝗶𝗹𝗮𝘁𝗲𝗿𝗮𝗹 agreements. It enables Internationally Transferred Mitigation Outcomes (𝗜𝗧𝗠𝗢𝘀). This means emissions reductions can be transferred between countries to help meet their Nationally Determined Contributions (NDCs).

𝟮) 𝗔𝗿𝘁𝗶𝗰𝗹𝗲 𝟲.𝟰: It establishes a 𝗺𝗮𝗿𝗸𝗲𝘁-𝗯𝗮𝘀𝗲𝗱 𝗺𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺, similar to the Clean Development Mechanism (CDM) under the Kyoto Protocol. This involves international cooperation in reducing emissions through projects that generate certified emission reductions (CERs). The mechanism is overseen by 𝗮 𝗦𝘂𝗽𝗲𝗿𝘃𝗶𝘀𝗼𝗿𝘆 𝗕𝗼𝗱𝘆 (a UN body responsible for overseeing the market) to ensure transparency and proper accounting.

𝙉𝙚𝙜𝙖𝙩𝙞𝙫𝙚𝙨:

1) Risk of 𝗱𝗼𝘂𝗯𝗹𝗲 𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 are not completely airtight.

“Voluntary” credits purchased by private companies do not have to go through the Article 6 system. This means that largely unregulated private schemes can still allow double counting

2) Article 6.2 in action while 𝘂𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆 remains on the operation of 𝗔𝗿𝘁𝗶𝗰𝗹𝗲 𝟲.𝟰 as the 𝗦𝗼𝘃𝗲𝗿𝗲𝗶𝗴𝗻 𝗕𝗼𝗱𝘆 is not fully functional.

3) Possible inclusion of emission removal projects with 𝘀𝗵𝗼𝗿𝘁-𝗹𝗶𝘃𝗲𝗱 𝘀𝘁𝗼𝗿𝗮𝗴𝗲 (such as most nature-based activities), which do not lead to permanent emissions removals and should not be used as offsets.

4) ITMOs can be generated by certain countries on the basis of 𝗾𝘂𝗮𝗻𝘁𝗶𝗳𝘆𝗶𝗻𝗴 “policies and measures” in 𝗖𝗢𝟮𝗲 𝘁𝗲𝗿𝗺𝘀, which remains 𝘃𝗮𝗴𝘂𝗲 and is potentially subject to abuse.

Analysis clearly says that we have a carbon market but there is no clarity in terms of quantification. Most importantly no onus of responsibility in transparent accounting of carbon credits.

This article highlights that in terms of Climate Change and Sustainability it requires a collaborative effort. Both developed and developing nations need to collaborate on various fronts while the former has more responsibility than the latter. However, there are talks but no walks, so we have a long way to go before we achieve Net Zero and Paris Agreement targets.