Question of climate finance still unanswered

Speakers at a session titled Just Energy Transition in the Global Sout- Challenges for Tripling Renewable Energy by 2030 on Tuesday in Baku

Just two days before the conclusion of COP29, the question of climate finance is still unanswered. There is disagreement over whether richer developing countries such as China and those in the Middle East should chip in on a trillion-dollar climate funding pool. Developed nations in Europe are arguing for their inclusion while developing nations, such as G20 host Brazil, are against it.

The larger existential question emerging from the COP process, however, is whether it is now time for COP to be overhauled. Suggestions from those such as Christina Figueras, the architect of the Paris Agreement, include smaller, more solutions-driven events, with fewer fossil fuel lobbyists, and governance mechanisms to hold countries to account for their climate commitments.

Some in Southeast Asia are not waiting on climate finance promises to accelerate the energy transition. On a recent EB Hangout session for our subscribers, Eco-Business correspondents Hannah Fernandez and Gabrielle See explained how transition credits are being used to finance the early closure of a coal plant in the Philippines. Watch our new mini documentary on the financing mechanism. 

But shutting down coal plants is not easy – especially when unexpected costs are involved. Just ask Singapore’s banking giant DBS, which admitted that it has faced difficulties in trying to phase out Indonesian coal plant Cirebon-1 due to unanticipated issues with grid stability and integrating renewables.

While climate mitigation efforts continue to face challenges, vulnerable rural communites are already struggling to adapt to extreme weather brought on by climate changes. On the Eco-Business podcast this week, researcher Dr Thomas White spoke about the plight of camel herders in Inner Mongolia, who say they have not been able to sustain their livelihoods in the face of climate change and other policies.

Samantha Ho

Eco-Business <newsletter@eco-business.com>