At Bonn, talks hit climate finance roadblock ahead of Baku summit

Half way through the two week Bonn Climate Change Meeting, observers said there has been no progress on talks to define a new collective quantified goal (NCQG) , which is expected to define the contours of discussion at the next UN climate conference, COP29, at Baku, Azerbaijan.

The US has repeated its stance on how contributing to the new fund, meant to replace the existing goal of $100 billion per year, should be voluntary. The Arab group, Cuba and African nations have called for determining the quantum of the new goal.

The agenda of COP29 this November is to negotiate a new financial goal to be set from the floor of $100 billion for the post-2025 period. This is expected to help developing countries transition to a low-carbon future.

“Proper progress is urgently needed at the UNFCCC climate negotiations this week as, with each day passing, the talks are turning into a cesspit of inaction,” said an update by the Climate Action Network on Monday.

According to Loss and Damage Collaboration, a climate policy group that is tracking the negotiations, the US has argued that NCQG is separate from the provisions under the United Nations Framework Convention on Climate Change. This weakens the provision in the convention and the Paris Agreement that developed nations ought to deliver climate finance to developing countries, experts said. They also said developed countries are urging to expand the number of donors by including emerging economies and limiting beneficiaries to least developed countries.

The African group of countries have demanded discussions on what will be the quantum of this new goal. “What we are focusing on is the $1.3 trillion (demand) that was put forward by developing countries and how we’re going to deliver,” Ambassador Mohamed Nasr, Egypt’s chief climate negotiator said on behalf of the Africa group on Saturday during a meeeting on the NCQG.

“At the end of week one we are still far from convergence on an ambitious finance target. Multiple options are on the table, and developed countries are still making bad faith demands to open up discussions like the contributor base, despite Article 9 of the Paris Agreement being clear that finance must flow from developed to developing countries. The G77 is so far united in its asks and must scale up pressure in week two to move the need ahead of COP 29,” said Avantika Goswami, programme manager - climate change, Centre For Science And Environment.

“The negotiations surrounding the new climate finance goal reveal a moral and legal abdication by developed nations, spearheaded by the US and Europe. This is not just an evasion of responsibility; it is an act of profound immorality,” said Harjeet Singh, climate activist and observer at the Bonn negotiations.

HT reported on May 6 that major differences are emerging again between rich and developing countries on who should contribute to the NCQG. In an Ad Hoc Work Programme (AHWP) of the United Nations Framework Convention on Climate Change (UNFCCC), held in Cartagena in Colombia from April 23 to 26, the US is reported to have said the New Collective Quantified Goal (NCQG) is “voluntary” for those that “choose to pay.”

Meanwhile, UN Climate Chief Simon Stiell called on parties to submit biennial transparency reports before COP29 in Baku.

“Biennial Transparency Reports – BTRs – help to shine a light on progress. They tell us if the machinery is working, how it is performing, whether we are reaching our Paris Agreement goals,” Stiell said during his opening address at the Dialogue on the Enhanced Transparency Framework at Bonn on Monday.

Only two countries--Andorra and Guyana have submitted their BTRs so far. “Last year, Andorra became the first country ever to submit a BTR, and another came in just recently from Guyana, a member of the Alliance of Small Island States. Preparing these reports isn’t just about ticking a box. Knowledge gained will help countries make informed choices, set ambitious goals, and unlock the finance needed to support them. For example, Guyana’s report details the progress made measuring the vast forests that cover the country and the carbon they capture,” Stiell said.

Under the Enhanced Transparency Framework, Parties to the Paris Agreement are required to submit biennial transparency reports every two years, with the first submission due by December 31, 2024. BTRs are supposed to include information on national inventory reports (NIR), progress towards NDCs, policies and measures, climate change impacts and adaptation, levels of financial, technology development and transfer and capacity-building support, capacity-building needs and areas of improvement.