Government has welcomed the new finance deal of US$300 billion per year by 2035 - which was committed by high-income economies, to finance climate action for developing economies.
The deal was clinched at the United Nations Framework Convention on Climate Change (UNFCCC) 29th Conference of the Parties (COP29), which concluded in the early hours of Sunday in Baku, Azerbaijan.
The agreement signals to private sector and multilateral development banks to scale up financing to developing economies to US$1.3 trillion per year by 2035.
“The decision underscores the importance of reforming the multilateral financial architecture, to make it fit for purpose to address the climate crisis. It also calls for scaled up support for climate action from multilateral financial institutions through grant-based and concessional financing,” Department of Forestry, Fisheries and the Environment Deputy Director-General for Climate Change and Air Quality Management Maesela Kekana said on Monday.
Kekana, who was the Chief Negotiator, said the decision further underscored the need to reduce barriers and address disenablers faced by developing economies in such as limited fiscal space, high levels of debt and high cost of capital.
South Africa’s delegation at the conference was led by Minister of Forestry, Fisheries and the Environment, Dr Dion George, who said the decisions that were adopted at COP29 are “a win for the country”.
“Parties adopted the Baku Climate Unity Pact consisting of a New Collective Quantified Goal (NCQG) on climate finance, Global Goal on Adaptation and Sharm el-Sheikh Mitigation Ambition and Implementation Work Programme as well as the key decisions on implementing the Paris Agreement’s Article 6.2 and 6.4.
“The adoption of Article 6.2 and 6.4 decision on carbon markets will allow South Africa and other developing economies to initiate new carbon market projects, which will facilitate investments in green technologies and economic opportunities,” the department said.
Going into the negotiations, the Minister was optimistic parties would take meaningful decisions toward quantifying quantify resources for developing economies, to meet ambitious climate targets.
“There have been complaints from other parties about the leadership of the COP29 Presidency and that the decisions were not reached through full consensus. However, for South Africa, the decisions that were adopted are a win.
“While we understand the frustration expressed by some parties, we do see the outcomes as a significant step in the right direction as it is more than what we had going into the negotiations and we can now build on that, especially given that South Africa will be the next President of the G20,” George said.
South Africa’s negotiating team was particularly pleased about the decision on the Mitigation Work Programme, which was Co-Chaired by Minister George and his Norwegian counterpart, Tore O. Sandvik.
“The Mitigation Work Programme will provide further opportunities to share experiences and match investment needs with investors. I am pleased with the outcome,” said Minister George.
On adaptation, parties are on track to finalise the work on the adaptation indicators to track progress in the implementation of the global goal on adaptation, at COP30 in Brazil in 2025.
“The conference also welcomed the rapid institutionalisation of the Loss and Damage Fund. Under the leadership of South Africa and France, the fund is expected to disburse funds to climate vulnerable communities in mid-2025. Team South Africa believes that COP29 was a huge success, which has inspired hope that we will be able to do more in future,” the department said. -SAnews.gov.za
