Human Rights Crucial as Wealthy Nations Reap Energy Transition Benefits

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COP28

Yamide Dagnet, the Director for Climate Justice at Open Society Foundations, delves into the intricacies of the negotiations at the United Nations Framework Convention on Climate Change (UNFCCC) 27th session of the Conference of Parties (COP28) in Dubai.

Yamide Dagnet points to the urgency of climate action to meet the Paris Agreements, while protecting frontline communities as about 70 000 attendees grapple with issues during the UN Climate Change Conference COP28. Credit: COP28/Walaa Alshaer

Yamide Dagnet points to the urgency of climate action to meet the Paris Agreements, while protecting frontline communities as about 70 000 attendees grapple with issues during the UN Climate Change Conference COP28. Credit: COP28/Walaa Alshaer

DUBAI, Dec 3 2023 (IPS) – As the world converges for COP 28, the urgency of addressing climate change has never been more palpable. In an exclusive interview with IPS, Yamide Dagnet, the Director for Climate Justice at Open Society Foundations, delves into the intricate details of this pivotal conference—from the unprecedented start to key challenges and opportunities in climate finance. She offers a comprehensive and nuanced perspective on global climate discourse.

As COP 28 unfolds, this interview provides a panoramic view of the complex landscape of climate action. From the challenges of climate finance to the critical role of the private sector and the ethical considerations in technology deployment, Dagnet offers a roadmap for navigating the intricate terrain of climate change, including an urgent call to action urging global leaders, businesses, and civil society to address the challenges that lie ahead collaboratively. As the world grapples with the consequences of climate change, the interview serves as a compass, guiding stakeholders towards a more sustainable and resilient future, and her voice clearly articulates her views that while the just energy and industrial revolution hold immense potential for economic growth in resource-rich nations, it is crucial to protect the rights of frontline communities and activists.

The Start of COP 28

The conference’s initial day set an unprecedented tone. “Positive developments like the creation of the Loss and Damage Fund and sizeable pledges, especially from countries like the UAE, Germany, and the EU, are highlights of this momentum’s emphasis on international solidarity; I hope that the momentum generated on day one will permeate the entirety of COP 28,” Dagnet told Inter Press Service.

Yamide Dagnet, Director for Climate Justice at Open Society Foundations. Credit: TJ Kirkpatrick, Open Society Foundations

Yamide Dagnet, Director for Climate Justice at Open Society Foundations. Credit: TJ Kirkpatrick, Open Society Foundations

Wealthier Nations and Climate Change

Dagnet delves into the role of wealthier nations in the fight against climate change. “While there is an expectation for these nations to fulfil their commitments, reality paints a different picture. Adaptation finance has not seen the necessary investment,” she said while pointing to a critical gap in addressing the immediate impacts of climate change. Looking at the financial dynamics, Dagnet dissected the pledges made by key nations and highlighted the ongoing challenges in reaching the financial targets made since 2009 and outlined in the Paris Agreement. Dagnet contends that “fulfilling pledges and demonstrating seriousness are essential steps for wealthier nations to regain trust and ensure a unified front in the fight against climate change.”

Key Trends in Climate Change Policy

Transitioning into a discussion on key trends shaping climate change policy in the next decade, Dagnet underscored the critical importance of aligning investments with the goals of the Paris Agreement. A concerning trend emerges as she highlights the “doubling of subsidies for fossil fuels, signaling a misalignment with the imperative to transition to clean energy. There is a need to redirect investments toward clean energy, adaptation, and activities in line with the Paris Agreement.”

Delving into philanthropic organizations’ role in supporting climate action, Dagnet says that while some positive dynamics have emerged on loss and damage, much work remains to be done. “Let us not forget that economic and non-economic losses and damages cost several hundreds of thousands of dollars each year.” She says there is a need to prioritize investments in supporting adaptation efforts, acknowledging the urgent need for resilience in the face of climate change impacts. She is hopeful as diverse group of eleven philanthropic organizations committed on December 2 to develop a joint strategic plan, joining the global chorus of voices calling for increased funding and action on climate adaptation.

Balancing Economic Goals and Climate Policies

Dagnet also highlights the challenge of balancing economic goals while adhering to climate policies, emphasizing the integration of climate policy into the broader development agenda. She illustrated the economic risks posed by climate-related disasters, citing examples of hurricanes causing widespread destruction. “Resilient infrastructure is vital, as even substantial economic gains can be wiped out if development projects are not resilient to floods, hurricanes, and other climate-related events,” she said.

Exploring the business sense of investing in reducing emissions, Dagnet highlights that, with the decreasing costs of renewable energy, it is not only an environmental imperative but also financially prudent. “The cost-effectiveness of renewable energy makes a compelling case for nations to prioritize emission reduction efforts, aligning economic goals with sustainable development,” she said.

It also means recognizing that the rare transition minerals needed to scale up the use of renewable energy require a just energy and industrial revolution, which holds immense potential for economic growth in resource-rich nations.

“However, the risk of human rights abuses and other adverse effects should be taken into account and mitigated by focusing on value addition in mineral supply chains by reconciling with the protection of activists and frontline communities, including people’s rights in land use, labor, and conservation of cultural heritage.”

The Role of the Private Sector

Dagnet further delves into the role of the private sector in climate action, focusing on areas such as adaptation and loss and damage. She acknowledged the challenges faced by the private sector in engaging with these aspects, emphasizing the need for them to integrate climate risk into their business models. “While adaptation may not seem immediately profitable, the long-term consequences of inaction are severe,” she says. She suggests that insurance companies need to review their business models, considering how they can better contribute to tackling losses and damages.

Technology for Addressing Climate Change

Turning to the role of technology in addressing climate change, Dagnet discussed the potential and pitfalls. She advocates for a “balanced approach that leverages indigenous knowledge alongside technological solutions. Dagnet highlights the importance of proper assessment, monitoring, safeguards, and global governance to mitigate the risks associated with less-proven and more controversial solutions like geoengineering, carbon dioxide removal, and carbon capture and storage. This is critical for responsible technology deployment, recognizing that while technology can offer solutions, it must be guided by ethical considerations, an understanding of potential risks, and the design of appropriate guardrails to minimize unintended adverse impacts.” She suggested that a holistic approach, which includes both technological advancements and indigenous knowledge, together with a more participatory process bringing various constituencies from both the global north and global south, provides a more robust foundation for addressing climate change challenges in an innovative and equitable way.

Civil Society’s Accountability Role

Dagnet further highlighted the vital role of civil society in holding governments accountable for their climate commitments, including their financial pledges. She contends that efforts to “measure progress and scrutinize government actions are essential tools for civil society to hold governments accountable for their commitments.” She also acknowledged the power of public pressure to drive governments to take more ambitious climate action. Dagnet emphasized the need for a multi-faceted approach, combining legal frameworks, grassroots movements, and international collaboration based on robust data and supported by nuanced and more sophisticated communication strategies, to hold governments accountable on the global stage effectively.

Assessment of International Agreements

Dagnet provided a sober assessment of the international agreements reached so far in the fight against climate change. She also acknowledged that the world is far from achieving its climate objectives, and the window to meet temperature goals is shrinking rapidly. But like many climate justice avengers, she is not defeated and points out ways COP28 and its global stocktake can create an inflection point, with a “course correction pathway” that highlights the need for increased attention to scaling up efforts to keep global temperature increases to 1.5 degrees Celsius and enhance resilience, especially in the face of recent climate-related disasters globally. “No country is immune to the disasters the climate change is unleashing. It is imperative to scale up and speed up efforts to keep fossil fuels on the ground while focusing on building resilience to mitigate the impact of climate change,” she concluded.

IPS UN Bureau Report

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Africa Will Not Cope with Climate Change Without a Just, Inclusive Energy Transition

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COP28

Climate change impact on Africa has been devastating as this photo taken in the aftermath of Cyclone Idai in Mozambique shows. A just transition is needed. Credit: Denis Onyodi / IFRC/DRK

Climate change impact on Africa has been devastating as this photo taken in the aftermath of Cyclone Idai in Mozambique shows. Credit: Denis Onyodi / IFRC/DRK

NAIROBI, Nov 24 2023 (IPS) – A just transition should be viewed as an opportunity to rectify some of the wrongs where women are not prioritised in the energy mix, yet their experience of the impact of climate change is massive, says Thandile Chinyavanhu, a young South African-based climate and energy campaigner with Greenpeace Africa.

Recent UN scientific research on the state of the climate change crisis and ongoing climate action reveals that the window to reach climate goals is rapidly closing. The world is not on track to reach the goals set out in the Paris Agreement, which commits all countries to pursue efforts to limit the global temperature increase to 1.5°C above pre-industrial levels.

To achieve this goal, emissions must decrease by 45% by 2030 and reach net zero by 2050. Ahead of COP28 in Dubai, United Arab Emirates (UAE), expectations are high that a clear roadmap to net zero progress will be reached, bringing issues of energy, a global energy transition, and energy security into sharp focus.

The energy sector has a significant impact on climate as it accounts for an estimated two-thirds of all harmful greenhouse gas emissions. The burning of fossil fuels is the primary cause of the ongoing global climate change crisis, significantly altering planet Earth. The issue of energy and climate is of particular concern to African countries, especially the Sub-Saharan Africa region, as they also relate to increased vulnerabilities for women, especially rural women. The intersection between energy security and economic growth, poverty reduction, and the empowerment of women and girls is not in doubt.

Still, despite access to reliable, affordable, and sustainable energy for all being articulated under the UN’s SDG 7, one in eight people around the world has no access to electricity. In sub-Saharan Africa alone, nearly 600 million people, or an estimated 53 percent of the region’s population, have no access to electricity. Currently, less than a fifth of African countries have targets to reach universal electricity access by 2030. For some, the silver bullet is to dump fossil fuels and go green; for others, it is an urgent, just, and equitable transition to renewables.

IPS spoke to Chinyavanhu about her role as a social justice and climate activist. She says she wants to contribute to climate change mitigation, ensuring that people and cities are prepared for climate change and can adapt to what is coming.

Thandile Chinyavanhu

Thandile Chinyavanhu

Here are excerpts from the interview.

IPS: Why are current energy systems untenable, considering the ongoing climate change crisis?

Chinyavanhu: On going green and dumping fossil fuels, there are several issues at play, and they vary from country to country. Fossil fuels—coal, oil, and gas—are by far the largest contributors to global climate change, as they account for more than 75 percent of global greenhouse gas emissions and nearly 90 percent of all carbon dioxide emissions. South Africa, for instance, has a big coal mining industry and is one of the top five coal-exporting countries globally. The country relies heavily on coal for about 70 percent of its total electricity production. We need to move away from energy consumption models that are exacerbating the climate crisis, but we must also ensure that we are centred on a just transition.

IPS: What should a ‘just energy transition’ look like for Africa and other developing nations?

Chinyavanhu: Overall, we are looking at issues of socio-economic development models that leave no one behind. To achieve this, renewable energy is the pathway that provides us with energy security and accelerated development. We have serious energy-related challenges due to a lack of preparation and planning around the energy crisis. The challenge is that Africa needs energy and, at the same time, accelerates its development in a manner that leaves no one behind, be it women or any other vulnerable group that is usually left behind in policy responses.

There is a need to address challenges regarding access to energy for all so that, in transitioning to clean energy, we do not have any groups of people being left behind, as has been the case. This is not so much a problem or challenge as an opportunity for countries to address gaps in access to energy and ensure that it is accessible to all, especially women, bearing in mind the many roles they play in society, including nurturing the continent’s future workforce. A just energy transition is people-centred.

We must recognise and take stock of the economic impact that moving from fossil fuels to clean energy could have on people and their livelihoods, such as those in the mining sector. It is crucial that people are brought along in the process of transition, giving them the tools and resources needed for them to be absorbed into new clean energy models. There is a very deep socio-economic aspect to it because people must be given the skills and capacities to engage in emerging green systems and industries.

IPS: As a young woman activist, what do you think the roles of women in an energy transition are?

Chinyavanhu: Women are generally not prioritised, and so they do not have the same opportunities as men, even in matters of climate change adaptation and mitigation, and this is true for sectors such as agriculture and mining. Women have great economic potential and have a very big role to play towards a just energy transition as key drivers of socio-economic progress.

In the green energy space, economic opportunities are opening up. Men are quickly taking over the renewable energy industry, but there are plenty of opportunities for women to succeed if given the right resources. We are at a point in time when we have the opportunity to leave behind polluting technologies and, at the same time, address some of the key socio-economic challenges that have plagued societies for a long time.

This transition should be viewed as an opportunity to rectify some of those wrongs in a way that is people-centred and inclusive. No one should be left behind. It is really about building harmony with nature while also addressing many of the socio-economic issues that plague us today. This is more of an opportunity than a hurdle. It is about understanding and rectifying systems’ thinking that contributes to women being left behind. It is important that we see the bigger picture—identify and acknowledge that different groups—not just women, but any identifier that places people at a point of vulnerability—have been left furthest behind. The energy transition process has presented an opportunity to make it right.
IPS UN Bureau Report

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Smallholder Farmers Gain Least from International Climate Funding

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Climate Change Finance

David Obwona at his seed rice farm in Katukatib village, Amoro district, northern Uganda. The farmer is part of a group that is now engaged in seed rice farming to climate-proof agriculture courtesy of the Regional Universities Forum for Capacity Building Agriculture. Credit: Maina Waruru/IPS

David Obwona at his seed rice farm in Katukatib village, Amoro district, northern Uganda. The farmer is part of a group that is now engaged in seed rice farming to climate-proof agriculture courtesy of the Regional Universities Forum for Capacity Building Agriculture. Credit: Maina Waruru/IPS

NAIROBI, Nov 14 2023 (IPS) – Smallholder farmers from the Global South benefit from a grossly disproportionate 0.3% of international climate finance despite producing a third of the world’s food and despite holding the key to climate-proofing food systems.

The family farmers and rural communities received around USD 2 billion from both public and private international climate funds out of the USD 8.4 billion that went to the agriculture sector in 2021, even as over 2.5 billion people globally depended on the farms for their livelihoods.

The USD 8.4 billion was almost half of the USD 16 billion that was availed for the energy sector and is only a fraction of the estimated USD 300-350 billion needed annually to “create more sustainable and resilient food systems,” a new report has found.

The amount was also quite different from the USD 170 billion that smallholder farmers in Sub-Saharan Africa alone would require per year, the study on global public finance for climate mitigation and adaptation conducted by Dutch climate advisory company Climate Focus has found.

The low level of climate finance for agriculture, forestry, and fishing is of concern, given the impact of climate change on food production and the extent to which food and agriculture are fueling the climate and biodiversity crisis.

Agricultural productivity has declined by 21 percent due to climate change, while the food and agriculture sector as a whole is responsible for 29 percent of greenhouse gas emissions and 80 percent of global deforestation, the study explains.

The farmers have been sidelined by global climate funders and locked out of decision-making processes on food and climate despite being the engines of rural economic growth. This is especially so in Sub-Saharan Africa, where up to 80 percent of agriculture is by smallholder farmers and where 23 percent of regional GDP is attributable to the sector.

It reveals that 80 percent of international public climate finance spent on the agri-food sector is channeled through governments and donor country NGOs, making it hard for smallholder farmers’ organizations to access it. This is because of complex eligibility rules and application processes and a lack of information on how and where to apply.

Many family farmers also lack the infrastructure, technology, and resources to adapt to climate impacts, with serious implications for global food security and rural economies as well, it notes.

The study ‘Untapped Potential: An analysis of international public climate finance flows to sustainable agriculture and family farmers,’ published on 14 November, laments that only a fifth of international public climate finance for food and agriculture supports sustainable practice. The money mainly goes to the Global North, even as agriculture becomes the third biggest source of global emissions. and the main driver of biodiversity loss.

“Climate change is hitting harvests and driving up food prices across the globe. It has helped push 122 million people into hunger since 2019. We need to create more sustainable and resilient food systems that can feed people in a changing climate, but we can’t do this without family farmers,” the report compiled on behalf of ten farmer organizations in Africa, Asia, Latin America, and the Pacific says.

“Family farmers are also key to climate adaptation. They are at the forefront of the shift to more diverse, nature-friendly food systems, which the Intergovernmental Panel on Climate Change (IPCC) says is needed to safeguard food security in a changing climate,” it further notes.

The groups are led by the World Rural Forum and include African groups—the Eastern Africa Farmers Federation, Eastern and Southern Africa small-scale Farmers Forum, the Regional Platform of Farmers’ Organisations in Central Africa, and the Network of West African Farmers’ and Producers’ Organisations. Also part of the group is Northern Africa’s Maghreb and North African Farmers Union.

The Asian Farmers Association for Sustainable Rural Development, the Pacific Island Farmers Organization Network, the Confederation of Family Producers’ Organizations of Greater Mercosur, and the Regional Rural Dialogue Programme are also represented in the study.

Many of the farmers are already practicing climate-resilient agriculture, including approaches such as agroecology, which implies a wider variety of crops, including traditional ones, mixing crops, livestock, forestry, and fisheries, while reducing agrochemical use, and building strong connections to local markets.

The study by the new alliance of farmer networks representing over 35 million smallholder producers ahead of COP28, which is set to agree on a Global Goal for Adaptation, is concerned that since 2012, overall, only 11% of international public climate finance has been targeted at agriculture, forestry, and fishing, which amounts to an average of USD 7 billion a year.

In 2021, the World Bank, Germany, the Green Climate Fund, and European Union institutions contributed around half—54 percent, amounting to USD 4 billion collectively, while Nigeria, India, and Ethiopia were the top recipients, receiving a combined USD 1.8 billion. Notably, some of the world’s most food insecure countries, including Sudan, Sierra Leone, and Zambia, each received less than USD 20 million, it discloses.

“As the climate crisis pushes the global food system ever closer to collapse, it is vital that governments recognize family farmers as powerful partners in the fight against climate change,” it warns.

Hakim Baliriane, Chair of the Eastern and Southern Africa small-scale Farmers Forum, observed: “Climate change has helped push 122 million people into hunger since 2019. Reversing this trend will not be possible if governments continue to tie the hands of millions of family farmers.”

The study defines small-scale family farms as those of less than two hectares, mainly in developing countries.

On the other hand, international climate finance broadly refers to finance channeled to “activities that have a stated objective to mitigate climate change or support adaptation. These include multilateral flows in and outside the (UNFCCC) and the Paris Agreement, as well as bilateral flows at national and regional levels, including the Global Environment Facility, Adaptation Fund, and Green Climate Fund, and are usually disbursed as grants and concessional loans

The study finds that family farms are also the backbone of rural economies, supporting over 2.5 billion people globally who depend on family farms for their livelihoods. It says that in Sub-Saharan Africa, where up to 80 percent of farming is done by smallholder farmers, agriculture contributes 23 percent to regional Gross Domestic Product.

Family farmers are also key to climate adaptation in that they are at the forefront of the shift to more “diverse, nature-friendly food systems,” which, according to the Intergovernmental Panel on Climate Change (IPCC), are critical in safeguarding food security in a changing climate.

It finds that millions of smallholder farmers are already practicing climate-resilient agriculture, including approaches such as agroecology—growing a wider variety of crops, including traditional crops, mixing crops, livestock, forestry, and fisheries, reducing agrochemicals use while building “strong connections to local markets.”

It concludes that governments must ensure that available climate finance for sustainable climate-resilient practices is increased, including that of agroecological approaches.

It explains: “This means funds to support diverse, nature-friendly approaches and to create community-based solutions that build on traditional expertise and experience.

It recommends that small-scale family farmers ought to have direct access to more climate finance and that financing mechanisms and funds should be developed with the participation of farmers’ organizations to meet their needs.

In addition, efforts should be made to ensure longer-term, flexible funding so that communities can determine their own priorities.

The role of the farmers as powerful catalysts for climate action, food system transformation, and the protection of biodiversity should be acknowledged and given a “real say” in decision-making on food and climate at the local, national, regional, and international levels. This should include decisions on land reform and agricultural subsidies.

The COP28 in Dubai later this month has food systems as a big part of the agenda.

An August report by the UK’s ActionAid has found that climate adaptation and green transition initiatives in the Global South received 20 times less financing when compared to main global emitters, fossil fuels, and intensive agriculture sectors in the last seven years.

It found that leading banking multinationals funded the emitters’ activities in the southern hemisphere to the tune of USD 3.2 trillion since 2015 when the Paris Agreement on Climate was adopted. German agrochemical giant Bayer was the biggest recipient of the financing, receiving an estimated USD 20.6 billion since 2016.

IPS UN Bureau Report

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Toothless Global Financial Architecture Fuelling Africa’s Climate Crisis

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Climate Change Justice

Africa needs approximately USD 579.2 billion in adaptation finance over the period 2020 to 2030, and yet the current adaptation flows are five to 10 times below estimated needs.
 

This goat died of starvation while surrounded by an inedible invasive plant. Lives hang in the balance as Kenya’s dryland is ravaged by a severe prolonged drought. Credit: Joyce Chimbi/IPS

This goat died of starvation while surrounded by an inedible invasive plant. Lives hang in the balance as Kenya’s dryland is ravaged by a severe prolonged drought. Credit: Joyce Chimbi/IPS

NAIROBI, Sep 5 2023 (IPS) – As thousands convene in Kenya’s capital, Nairobi, for the Africa Climate Summit, the first time the African Union has summoned its leaders to solely discuss climate change under the theme ‘Driving Green Growth and Climate Finance Solutions for Africa and the World’, the backdrop is a country on the frontlines of a climate crisis.

The severe, sharp effects of climate change are piercing the very heart of an economy propped up by rainfed agriculture and tourism – sectors highly susceptible to climate change. After five consecutive failed rainy seasons, more than 6.4 million people in Kenya, among them 602,000 refugees, need humanitarian assistance – representing a 35 per cent increase from 2022.

It is the highest number of people in need of aid in more than ten years, says Ann Rose Achieng, a Nairobi-based climate activist. She tells IPS that Kenya is hurtling full speed towards a national disaster in food security as “at least 677,900 children and 138,800 pregnant and breastfeeding women in Kenya’s arid and semi-arid regions alone are facing acute malnutrition. Nearly 70 per cent of our wildlife was lost in the last 30 years.”

Despite Kenya contributing less than 0.1 per cent of the global greenhouse gas emissions per year, the country’s pursuit of a low carbon and resilient green development pathway produced a most ambitious Nationally Determined Contribution (NDC) to cut greenhouse gasses by 32 per cent by 2030 in line with the Paris Agreement.

But as is the case across Africa, there are no funds to actualise these lofty ambitions. Africa needs approximately USD 579.2 billion in adaptation finance over the period 2020 to 2030, and yet the current adaptation flows to the continent are five to ten times below estimated needs. Globally, the estimated gap for adaptation in developing countries is expected to rise to USD 340 billion per year by 2030 and up to USD 565 billion by 2050, while the mitigation gap is at USD 850 billion per year by 2030.

After five consecutive failed rainy seasons, food insecurity is expected to escalate as maize crop has failed to flourish due to erratic weather patterns. Credit: Joyce Chimbi/IPS

After five consecutive failed rainy seasons, food insecurity is expected to escalate as maize crop has failed to flourish due to erratic weather patterns. Credit: Joyce Chimbi/IPS

As dams and rivers dry up, Kenya will continue to be on the frontlines of a climate crisis unless climate change adaptation and mitigation efforts are escalated. Credit: Joyce Chimbi/IPS

As dams and rivers dry up, Kenya will continue to be on the frontlines of a climate crisis unless climate change adaptation and mitigation efforts are escalated. Credit: Joyce Chimbi/IPS

Frederick Kwame Kumah, Vice President of Global Leadership African Wildlife Foundation, tells IPS a big part of the problem is Africa’s burgeoning gross public debt which increased from 36 per cent of Gross Domestic Product (GDP) to 71.4 per cent of GDP between 2010 and 2020 – a drag on its development progress and a disincentive for climate finance flows.

“There is a concern that climate finance, if and when provided, will be used to first service Africa’s debt burden. The first step to addressing Africa’s Climate Finance must be action towards debt relief for Africa. Freeing up debt servicing arrangements will release resources for continued development and climate finance purposes,” Kumah explains.

He says there is an urgent need to challenge the existing unfair paradigm for financing by developing countries. It is very expensive for developing countries to borrow for development purposes. Africa must then leverage its natural capital towards seeking innovative financing mechanisms such as green bonds and carbon credits to address its development and climate change challenges.

Nearly half, 23 out of 47 counties in Kenya, are classified as arid and semi-arid. Livelihoods are at risk as pastoralists are unable to cope with drastic weather changes. Credit: Joyce Chimbi/IPS

Nearly half, 23 out of 47 counties in Kenya, are classified as arid and semi-arid. Livelihoods are at risk as pastoralists are unable to cope with drastic weather changes. Credit: Joyce Chimbi/IPS

This waterfall is on the verge of drying up. Kenya's economy is heavily dependent on tourism and agriculture. The two sectors are highly susceptible to climate change. Credit: Joyce Chimbi/IPS

This waterfall is on the verge of drying up. Kenya’s economy is heavily dependent on tourism and agriculture. The two sectors are highly susceptible to climate change. Credit: Joyce Chimbi/IPS

“Climate finance was, as expected, a key part of COP27. It is a grave concern for Africa that developed countries’ commitment to provide $100 billion annually has yet to be met, even though the need for finance is becoming increasingly obvious. In COP27, we noted that new climate finance pledges were more limited than expected. Countries such as those in Africa are still waiting for previous pledges to be fulfilled,” says Luther Bois Anukur, Regional Director, IUCN (International Union for Conservation of Nature).

Meanwhile, Anukur tells IPS negotiations on important agenda items, most notably the new finance target for 2025, stalled. In COP27, Parties concentrated on procedural issues – deferring important decisions about the amount, timeframe, sources, and accountability mechanisms that may be relevant to a new finance goal in the future. African countries and many other vulnerable countries are in the fight for our lives, and sadly they are losing.

Anukur stresses that Africa’s natural resources are depleted, eroded, and biodiversity lost due to extreme effects of climate change leading to loss of lives and ecosystem services and damage to infrastructure at an alarming rate. Yet climate finance pledges have not materialised. The Africa Climate Summit should be the platform for Africa and developing partners to address existing finance gaps with clear programmatic and project approaches.

Africa must use the Summit to assess and prepare their position for the COP28 in the United Arab Emirates towards strengthening partnerships for the delivery of desired climate finance. Kumah adds that the principle of equal but differentiated responsibilities of nations must be adhered to for climate justice and to enable developing countries, who are least responsible for the effects of climate, to have much-needed resources to cope and adapt to biodiversity loss and climate change.

“In that respect, the creation of a dedicated funding mechanism to address loss and damage and another for adaptation and mitigation to redress historical and continued inequities in contributions towards biodiversity loss and climate change. We must rethink how private investments can be reshaped and harnessed for the benefit of biodiversity and climate action,” Kumah expounds.

“Private investments can be scaled through green bonds, carbon markets, sustainable agricultural, forestry and other productive sector supply chains.  Transformative financing architecture is necessary at the domestic and international levels to bring the private and public sectors together to secure the critical backbone of Africa’s natural infrastructure.”

Climate finance gap. Graphic: Joyce Chimbi & Cecilia Russell

Climate finance gap. Graphic: Joyce Chimbi & Cecilia Russell

While developing countries submitted revised and ambitious National Adaptation Plans and NDCs as requested, Anukur says complicated processes to access financing for their climate actions persist. Stressing the need for reforming the international financial architecture, starting with multilateral development banks.

“The 2023 Summit for New Global Financing Pact held in Paris committed to a coalition of 16 philanthropic organizations to mobilize investment and support UN’s SDG priorities by unlocking new investment for climate action in low- and middle-income countries while reducing poverty and inequality,” Anukur observes.

Civil society organizations and activists such as Achieng have expressed concerns that such announcements are insufficient considering the scale of the challenges facing planet Earth. The Summit will have failed if the global financial architecture is not overhauled in line with the needs of the African continent, she says.

Anukur says the Summit must therefore propel Africa to new heights of climate financing to help reduce Africa’s vulnerability to climate change and increase its resilience and adaptive capacity in line with the Global Goal on Adaptation. Ultimately expressing optimism that the opportunity to unlock the potential of climate financing – breaking the shackles of debt and building a climate-resilient and prosperous Africa is, at last, in sight.

IPS UN Bureau Report

 

Biodiversity Credits: Solution or Empty Promise for Latin America?

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Climate Change Finance

In the Bosque de Niebla, located in the department of Antioquia in northwestern Colombia, biodiversity bonds have emerged to push for protection of the ecosystem from threats such as deforestation and rising temperatures. But these instruments are still very green in Latin America. CREDIT: Courtesy of Terraso - Unlike offsets for environmental damage due to infrastructure projects, biodiversity credits are an economic instrument that can be used to finance actions that result in measurable positive outcomes through the issuance and sale of biodiversity units

In the Bosque de Niebla, located in the department of Antioquia in northwestern Colombia, biodiversity bonds have emerged to push for protection of the ecosystem from threats such as deforestation and rising temperatures. But these instruments are still very green in Latin America. CREDIT: Courtesy of Terraso

MEXICO CITY, Aug 28 2023 (IPS) – Located in northwestern Colombia, the Bosque de Niebla is home to 154 species of plants, 120 bird species, 21 species of mammals, 16 water springs and five hectares of wetlands.

Forming part of the Cuchilla Jardín-Támesis Integrated Management District in the department of Antioquia, the ecosystem provides water and climate regulation to the entire northwestern region of the country.

“Not all ecosystem services are the same, it has to be a very judicious system. And there have to be local regulations, from green taxonomies (classification of activities) to regulations. Therein lies the dilemma of where the sector has to go.” — Lía González

For this reason, an innovative financing scheme, biodiversity bonds, seeks to strengthen the protection of this area for 30 years, in the face of threats such as deforestation, drought and rising temperatures due to the climate crisis.

Private Colombian investor Terraso and Spanish carbon offset seller ClimateTrade, a climate solutions company that utilizes blockchain technology to facilitate large-scale decarbonization efforts through innovation, created voluntary biodiversity bonds for the Bosque de Niebla in May 2022.

The aim is to care for 340 hectares registered as a habitat bank by the Ministry of Environment and Sustainable Development of Colombia, one of the 10 most biologically diverse countries in the world.

Habitat banks are areas where conservation initiatives are aggregated and ecosystem preservation, enhancement or restoration actions are implemented to generate quantifiable biodiversity gains.

Each biodiversity credit represents 10 square meters of threatened, conserved or restored land. Technical, financial and legal guarantees will sustain the project for at least 30 years. Each bond, worth 30 dollars, corresponds to 30 years of conservation and/or restoration.

But the scheme raises concerns about the commercialization of wildlife and the pursuit of profit over ecological benefits.

Patricia Balvanera, an academic at the Institute for Research on Ecosystems and Sustainability of the public National Autonomous University of Mexico, said the financial market approach does not address the full spectrum of environmental, cultural and social issues, which can cloud the vision of the integral importance of nature.

“Other non-integrated values have to do with social, ethical principles that have developed around nature. We have bought ourselves an image as a factory of resources at the service of people and we have discarded the role of nature and society through a relationship of care and reciprocity,” she told IPS from the northern Mexican city of San Luis Potosí.

The expert is co-author of the study “Diverse values of nature for sustainability”, published on Aug. 9, which addresses a more holistic view of care.

Unlike offsets for environmental damage due to infrastructure projects, biodiversity credits are an economic instrument that can be used to finance actions that result in measurable positive outcomes through the issuance and sale of biodiversity units.

The buyers of biodiversity bonds gain in reputational aspects, by promoting the restoration and protection of ecosystems, and obtain funds by reselling the bonds, as it is a voluntary market.

These are different from carbon credits, where companies and individuals can buy the reduced emissions credits in what is known as the voluntary carbon market, to offset their polluting emissions: each one represents the elimination of one metric ton of carbon from the atmosphere.

For the carbon dioxide equivalent trapped and stored in ecosystems such as forests, project owners can issue certificates for sale in national and international markets to national and international corporations and individuals who want to reduce their polluting emissions.

Mangroves, such as these in the municipality of Paraíso in the southeastern Mexican state of Tabasco, are candidates for biodiversity bonds because of the services they provide and the need to protect them, like other ecosystems. But these credits still need international standards, verification and monitoring guidelines, as well as tangible results. CREDIT: Emilio Godoy / IPS - Unlike offsets for environmental damage due to infrastructure projects, biodiversity credits are an economic instrument that can be used to finance actions that result in measurable positive outcomes through the issuance and sale of biodiversity units

Mangroves, such as these in the municipality of Paraíso in the southeastern Mexican state of Tabasco, are candidates for biodiversity bonds because of the services they provide and the need to protect them, like other ecosystems. But these credits still need international standards, verification and monitoring guidelines, as well as tangible results. CREDIT: Emilio Godoy / IPS

On hold

In Honduras, a project similar to the Colombian one is advancing in Cusuco National Park, in the northwestern department of Cortés.

In the 22,200-hectare forest, decreed in 1987, the international alliance of environmental organizations rePlanet seeks the conservation of 1,883 hectares in 25 years in the face of threats such as deforestation and the risk to 24 species.

The project could issue bonds this year.

Lía González, director for Latin America of the Belgian social impact investment firm Incofin, said the instrument involves several challenges, such as monetization, assigning value to the blocks of land, the creation of standards for measurement, verification, monitoring and issuance, as well as the involvement of the communities.

“Not all ecosystem services are the same, it has to be a very judicious system. And there have to be local regulations, from green taxonomies (classification of activities) to regulations. Therein lies the dilemma of where the sector has to go,” she told IPS from Bogotá.

The executive stressed that the scheme should avoid the carbon credits model and learn from its mistakes, such as inaccurate calculation of carbon sequestration and violations of community rights.

In 2022, Incofin’s portfolio covered 111 clients in 14 Latin American countries for a total of 400 million dollars in segments such as sustainable agriculture and microfinance. In Colombia, it supported eight clients and totaled 44.3 million dollars.

The company focuses on medium-term investments, so that beneficiaries have an additional source of income within the area being protected or restored.

So far, so-called green bonds have fallen short in financing for the conservation of natural wealth and sustainable land use, according to a 2020 report by the Luxembourg Green Exchange and the Global Landscapes Forum, entitled: “How can Green Bonds catalyse investments in biodiversity and sustainable land-use projects?”

Colombia and Honduras are the countries that have moved forward with these instruments, because they have regulations and several financial instruments related to biodiversity, although bonds are still a rarity.

In this regard, the Organisation for Economic Co-operation and Development (OECD), which groups the world’s 38 most developed economies, noted in its 2021 report “Tracking Economic Instruments and Finance for Biodiversity” that, despite the progress made, the substantial potential depends on increasing the use and ambition of biodiversity-relevant economic instruments.

In its Sixth National Biodiversity Report 2020, Honduras recognized the need to improve the monetary and non-monetary valuation of environmental services.

Financing schemes are essential to the development of the United Nations Decade on Ecosystem Restoration 2021-2030, adopted by the U.N. General Assembly in 2019, which seeks to prevent, halt and reverse the degradation of terrestrial and marine ecosystems, to eradicate poverty, combat climate change and prevent the mass extinction of species.

Moving towards a take-off?

In order for it to be successful, the mechanism requires integrity of the projects and the inclusion of all stakeholders, according to the World Economic Forum, dedicated to multinational business lobbying.

The Colombian Bosque de Niebla initiative has already placed 62,063 credits and has 61,773 available.

The investor Terraso has seven other habitat banks in various areas of Colombia that could generate more bonds.

Balvanera warned of perverse incentives that could undermine protection.

“If we think about financial schemes, the link should not only be transactional. There must be involvement of different stakeholders who collectively identify the mechanism that promotes conservation, respects the vision of care and maintains the livelihoods of the inhabitants of these areas,” she said.

The academic argued that “this generates a circular system that connects forest protection, water care, food production and sustainable consumption.”

For her part, González was open to analyzing these investments.

“Water could be a viable focus for climate resilience and its impact on the region’s climate. We are interested in learning about monetization and that additional sources of income can benefit protection processes, so that it is complementary to what we do,” she said.

Last December, the 15th Conference of the Parties (COP15) to the Convention on Biological Diversity (CBD) adopted the Kunming-Montreal Global Biodiversity Framework, which includes cumulative biodiversity funding of at least 200 billion dollars by 2030 from public and private sources.

One of its goals is to encourage innovative schemes such as payment for environmental services, green bonds, offsets, biodiversity credits and benefit-sharing mechanisms that include environmental and social safeguards.

To meet these objectives, the 196 States Parties to the CBD created the Global Biodiversity Framework Fund, which is managed by the Global Environment Facility and whose governing council was approved in June in Brazil.

In addition, the agreement includes the complete or partial restoration of at least 30 percent of degraded terrestrial and marine ecosystems by 2030, as well as the reduction of the loss of areas of high biological importance to almost zero.

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Forus Civil Society Network Urges that Respect for Human Rights, Climate Justice and Accountability should be at the core of the New Global Financing Pact

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Indigenous activist protesting in Colombia. Credit: Sebastian Barros

By Marianne Buenaventura
PARIS, Jun 23 2023 (IPS)

As the Summit for a New Global Financing Pact unfolds in Paris on 22-23 June, Forus, a global network representing over 22,000 civil society organisations across Africa, Latin America, Asia, Europe and the Pacific, calls for the respect of human rights and for meaningful inclusion of civil society in shaping financial systems and structures.

The summit, co-hosted by India, could help find common ground on finance that drives progress at key events later in 2023 and in 2024 – the G20 summit in New Delhi, the COP28 climate talks in Dubai, and the Finance in Common summit with public development banks in Cartagena.

As part of the summit, Sarah Strack, Forus Director, is amplifying civil society’s voices at the high-level Finance in Common event in the presence of French President Emmanuel Macron and other leaders, to discuss and leverage the role of Public Development Banks in financing the SDGs, scaling up sustainable finance, and supporting inclusion. Forus has been engaging in the Finance in Common initiative since its inception in 2020 with the aim to ensure that a people-based approach to development is pursued.

“If we want to have a chance to tackle the most pressing challenges and the multiple crises of our time in a way that really puts first the interests and needs of people, then a shift of mindset and a new financial framework are absolutely necessary. It is essential that civil society plays a central role in shaping this new paradigm at every stage. Let us not forget the wealth of knowledge and leadership present at the local level. By actively engaging and collaborating with communities, we can genuinely measure our progress and honor the commitments we have made to those most in need,” says Sarah Strack.

Harsh Jaitli, CEO of the Voluntary Action Network India (VANI), is representing Forus as an official respondent in the Summit Roundtable “Power Our Planet: Act today. Save tomorrow”, co-hosted by Global Citizen and CISCO. The event seeks to rally for immediate action on economic, social, and climate justice, engaging both public and private sectors to catalyze renewable energy investment in climate-vulnerable countries to reduce energy poverty and accelerate the low-carbon transition.

Harsh Jaitli of VANI states that the New Global Financial Pact will require improved partnerships and the building of trust.

“Double standards have negatively impacted our collective capacity to deliver on effective development and climate related programmes. In some countries, multinational corporations respect human rights, fiscal and climate regulations, but in other countries decisions are made to violate them. Not only does this send the wrong message that some countries and populations are more important than others, but also jeopardizes our collective efforts to affect change. Multinational corporations should commit to respecting human rights, fiscal and climate regulations in all countries and in a consistent manner. When no strong regulations exist, this is the opportunity for multinationals to be proactive and to apply strong rules, which are coherent with their policies,”says Harsh Jaitli.

Julien Comlan Agbessi, Coordinator of the Regional Coalition of West Africa (REPAOC) emphasizes the importance of multi-stakeholder cooperation. Agbessi explains that cooperation between the private sector and the civil society organisations is possible, since the private sector could leverage hugely on the experience and outreach of civil society. “Many poverty alleviation programs and projects with significant funding implemented over the past decades have failed to deliver for communities. Transformative investments in low-income countries and climate impacted countries require putting the needs of people first,” says Julien Comlan Agbessi.

Lina Paola Lara Negrette, Coordinator of the Confederación Colombiana de ONG (Ccong), states that the New Global Financial Pact must incorporate stronger and more meaningful engagement with civil society.

“Civil society has an important role to play in ensuring the accountability and transparency of both government and private sector actors. Civil society can work closely with governments and the private sector to ensure the delivery of social and environmental needs in all investments, which includes respect of human rights”.

Olivier Bruyeron, President of the French platform of CSOs Coordination SUD, equally emphasizes the importance of partnerships with the public and private sector, “CSOs hold valuable knowledge and expertise on international solidarity needed to construct sustainable global solutions and to link them with local development” adds Olivier Bruyeron.

Marianne Buenaventura is project coordinator at Forus.

IPS UN Bureau

 


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