The enormous gap between adaptation finance needs and flows means the world is failing to adapt to current impacts with adaptation planning slowing and implementation falling behind, said Deputy Prime Minister and Finance Minister Prof Biman Prasad.
Addressing the session on ‘Nature-based Financing for Climate Resilience: Leveraging Natural Solutions for Sustainable Development’ at the COP29 meet in Baku, Azerbaijan on Thursday, Mr Prasad said most recently, small islands developing states’ (SIDS) urgent need for climate finance had been reaffirmed by the Antigua and Barbuda Agenda for SIDS and the global stocktake of the Paris Agreement.
He said climate finance reached $US115.9billion (approx $F264.3b) in 2022 but SIDS had access to only $US1.5billion (approx $F3.4b) out of the $US100billion ($F228.0b) in 2019.
He cited UNFCCC estimates that nearly $6trillion was needed for developing countries’ climate action plans by 2030.
He also referred to the Adaptation Gap Report 2024 estimates that more than 40 per cent of SIDS were on the edge of or were already grappling with unsustainable debt levels.
He said evidence showed private external debt in SIDS tended to rise during and after every major disaster.
“Between 2016 and 2020, SIDS paid in debt service 18 times more than what they received as climate finance. These vulnerabilities challenge the ability of SIDS to withstand external shocks and enhance their resilience,” he said.
“COP29 is crucial for us. At COP29, we must agree on the NCQG (New Collective Quantified Goals). We can’t delay this any further,” Mr Prasad said.
He urged nations to adopt an ambitious NCQG for climate finance in Baku and pursue innovative approaches to mobilise additional financial resources, including by creating the right enabling environment for public and private sector investment.
The NCQG on climate finance is a key element of the 2015 Paris Agreement aimed at setting a new financial target to support developing countries in climate actions.
