ESG Post

Sustainable Finance

UN climate chief urges G20 to deliver bold climate finance signal

The United Nations’ climate chief, Simon Stiell, has called on leaders of the world’s largest economies to issue a decisive signal in support of global climate finance initiatives during their upcoming summit in Rio de Janeiro. This appeal, made in a letter to G20 leaders, comes as COP29 negotiations in Baku grapple with finalising a deal to scale up funding to address the escalating impacts of climate change.

“Next week’s summit must send crystal-clear global signals,” said Stiell, executive secretary of the United Nations Framework Convention on Climate Change in the letter. He urged G20 leaders to back increases in grants, loans, and debt relief to ensure that vulnerable nations can prioritize climate action without being constrained by debt servicing costs.

Business leaders have expressed growing frustration over the lack of progress at COP29, with some voicing concerns about the negotiations’ focus and pace. Brazilian climate official Ana Toni emphasised the importance of a strong climate signal from the G20 summit to unlock critical progress in Baku.

The stakes are high at this year’s UN climate summit, where success hinges on securing an ambitious annual climate finance target. Economists estimate that developing countries will require at least $1 trillion annually by 2030 to mitigate and adapt to climate change. However, midway through the two-week conference, negotiators remain at odds over key issues, including the scale of the target and the responsibilities of wealthier nations and development lenders.

The negotiations have reduced a 33-page draft text to 25 pages, but fundamental disagreements persist. Sweden’s climate envoy, Mattias Frumerie, noted that the toughest issues—defining the target’s size and determining contributors—remain unresolved. “The divisions we saw coming into the meeting are still there, leaving much for ministers to tackle next week,” he said.

Samir Bejanov, COP29’s deputy lead negotiator, called for nations to overcome their differences, stating, “It’s time for the negotiators to start proving doubters wrong.”

European negotiators have accused major oil-producing nations, including Saudi Arabia, of obstructing discussions on advancing last year’s COP28 agreement to transition away from fossil fuels. Saudi Arabia’s government has yet to respond to these claims, but progress on this issue has been described as “dire” by a European negotiator.

For many developing nations, securing affordable financing for clean energy projects remains a priority. Uganda’s energy minister, Ruth Nankabirwa, stressed the importance of leaving COP29 with a tangible deal. “When you look around and don’t have the money, you wonder if we’ll ever achieve a real energy transition,” she said.

As the world watches, the outcomes of the G20 summit and the second week of COP29 will be crucial in shaping the future of global climate action.