At COP29, financial innovation and accountability took centre stage. Discussions around solidarity levies—targeting high-carbon sectors like aviation and cryptocurrency—gained traction, with leaders such as Macron and Mottley advocating for this $355 billion solution to ensure climate justice.
However, tension escalated as Azerbaijan’s fossil-fueled Climate Finance Action Fund was shelved amidst criticism, with campaigners dismissing it as “greenwashing.” Calls for “ambitious and investible” NDCs highlighted the need for detailed frameworks to attract private capital, while Colombia’s push for a global minerals treaty stressed the importance of traceability and local value addition in resource-rich nations. Can these initiatives move from ambition to implementation in time to address the escalating climate crisis?
Presidency’s Fossil-Fuelled Climate Fund Stalled
- Azerbaijan’s Climate Finance Action Fund (CFAF), intended to channel fossil fuel money to developing countries, was deprioritised and its launch event cancelled during COP29.
- Azerbaijan’s lead negotiator, Yalchin Rafiyev, cited the complexity of establishing the fund and ongoing efforts to develop a workable concept for potential donors.
- The CFAF aims to raise at least $1 billion, with funding primarily distributed as commercial loans.
- Only 20% is planned for highly concessional or grant-based support to vulnerable nations. Campaigners called the fund a distraction from holding fossil fuel producers accountable for climate damages, with some labelling it as “greenwashing.”
“The presidency’s fossil fuel fund was a distraction and a greenwashing fund”
– Andreas Sieber 350.org
Europe Strikes Back at Criticism from Aliyev
- Azerbaijan’s President Ilham Aliyev accused the EU of “double standards” and singled out France and the Netherlands for their colonial history and alleged political hypocrisy.
- France’s environment minister canceled her COP29 trip, calling Aliyev’s remarks “unacceptable” and accusing Azerbaijan of using climate change for personal agendas.
- EU foreign affairs chief Josep Borrell criticised Aliyev’s comments as undermining COP29’s climate goals and spotlighted Azerbaijan’s human rights issues, including the detention of critics.
- Aliyev used the Small Island Developing States summit to highlight perceived colonial injustices, listing territories he claimed are “still suffering…from colonial rule.”
- Lead negotiator Yalchin Rafiyev defended Azerbaijan’s inclusivity at COP29, insisting the presidency remains open to all participants despite the fallout.
“Azerbaijan is instrumentalising the fight against climate change for its own unworthy personal agenda”
– Agnes Pannier-Runacher
Where will $1 trillion year needed by developing countries come from ?
- Authors estimate that developing countries (other than China) need $1 trillion a year from external sources by 2030 for climate investments.
- Advanced economies are urged to increase their $100 billion annual climate finance commitment to $300 billion.
- The remaining funding should come from private sector investments and multilateral development banks.
- Developed nations oppose efforts to expand the NCQG contributor base to include new donors like China and Gulf states.
Solidarity Levies Funding Climate Action
- Focus on Solidarity Levies: Proposed taxes on high- carbon sectors like cryptocurrency and aviation aim to generate up to $355 billion annually for climate finance.
- Leaders including French President Macron, Barbadian PM Mottley, and Kenyan President Ruto champion these levies.
- Emphasised the levies are about justice, urging financial innovation to support vulnerable nations.
- The initiative seeks to ensure fair financial contributions from high-carbon industries to aid climate resilience efforts.
‘Ambitious and Investible’ NDCs
- Organisations like the IIGCC call for “investible NDCs” that provide detailed policy frameworks to attract long-term private investment.
- Such NDCs should include sectoral targets, decarbonisation pathways, regulatory frameworks, capital needs, and social considerations like workforce gaps.
- Experts emphasise the need for cross-departmental coordination and actionable national strategies to translate NDCs into investment opportunities.
- While developed nations are expected to lead in setting benchmarks, organisations like the NDC Partnership support developing economies in enhancing their NDC quality.
- Governments and private sectors must “co-develop” opportunities, providing clear signals and linking NDCs to broader transition plans for sustainable implementation.
Campaigners Support Transition Minerals Treaty
- Colombia proposed a treaty at COP16 to ensure traceability of critical minerals like lithium, cobalt, and nickel from mining to recycling.
- Campaigners stress that voluntary standards are insufficient to prevent human rights abuses and environmental harm linked to critical mineral extraction.
- Advocates argue for greater investment in mineral-rich African nations, ensuring value addition stays local rather than exporting raw materials.
- President Mnangagwa emphasised avoiding historical exploitation and highlighted Zimbabwe’s aim to become a battery manufacturing hub by 2030.
“The West needs to realise that they cannot keep the whole pie” – Kuda Manjojo
