COP29: A Global South Perspective on Climate Finance and the NCQG

The 29th United Nations Climate Change Conference (COP29), hosted in Baku, Azerbaijan, from November 11 to 22, 2024, unfolded amid heightened expectations and pressing climate emergencies. For the Global South, COP29 was another opportunity to seek justice, as these nations bear the brunt of climate impacts despite their minimal contributions to global emissions.

The conference focused on finalising the New Collective Quantified Goal (NCQG) and operationalising the Loss and Damage Fund, alongside discussions on scaling up climate finance. However, while some progress was made, COP29 fell short of delivering the transformative solutions needed to address the magnitude of the climate crisis facing vulnerable nations.

NCQG: Progress or Disappointment?

The New Collective Quantified Goal (NCQG), intended to replace the outdated $100 billion annual target, was finalised at COP29. The NCQG aims to provide more dynamic and needs-based funding to address the growing financial requirements of developing nations. However, the pledged $300 billion annually by 2035 is woefully insufficient when compared to the estimated $1.3 trillion required annually to adequately address adaptation, mitigation, and loss and damage in developing countries.

Rather than being hailed as a breakthrough, the NCQG is a stark reminder of the persistent disparity between promises and the actual needs of the Global South. For vulnerable nations, the framework raises critical questions:

1. Accessibility: Will the pledged funds be easily accessible to countries that need them most, or will they be tied up in bureaucratic red tape?
2. Adaptation Deficit: Historically, climate adaptation has been grossly underfunded compared to mitigation efforts.
3. Private Sector Dependency: A significant portion of the NCQG relies on mobilising private sector investments, which often come with conditions that may not align with the priorities of vulnerable nations.

Loss and Damage: A Fund in Need of Funds

The Loss and Damage Fund, established at COP28, was a focal point at COP29. While progress was made in defining its governance structure, the fund remains largely underfunded, with limited clarity on how contributions will meet the growing needs of nations already grappling with climate disasters.

For communities in countries like Bangladesh, Vanuatu, and Mozambique, delays in operationalising this fund could mean the difference between survival and devastation. Despite some donor contributions, the fund’s future sustainability remains a critical concern.

Key Concern: Will this fund merely act as a symbolic gesture, or will it evolve into a robust mechanism capable of addressing the scale of loss and damage faced by frontline nations?

Persistent Challenges for the Global South

For countries in the Global South, COP29 underscored the deep inequities in global climate governance.

1. Insufficient Financial Commitments: The $300 billion pledge, though larger than previous targets, pales in comparison to the real costs of climate adaptation and mitigation.
2. Delayed Disbursements: Many developing nations expressed frustration over the slow pace of fund disbursement, with past pledges still unmet.
3. Unmet Expectations: The gap between what is promised and what is delivered continues to erode trust between the Global South and developed nations.

Opportunities for the Global South

Despite these setbacks, COP29 showcased the resilience and determination of Global South nations to advocate for their rights.

• Regional Solidarity: Alliances like the G77+China and AOSIS demonstrated collective power, ensuring that issues such as adaptation and loss and damage remained central to negotiations.
• South-South Cooperation: By sharing resources, technology, and expertise, Global South nations can reduce dependency on external funding and build resilience from within.
• Innovative Financing Models: Mechanisms like debt-for-climate swaps provide a way for vulnerable nations to reduce debt burdens while addressing climate challenges.

A Call for Climate Justice

For the Global South, COP29 reinforced the need for a climate framework rooted in justice and equity. The inadequacy of financial commitments highlights the failure of developed nations to honour their historical responsibilities and provide sufficient support to those most impacted by climate change.

As nations prepare for COP30 in Belém, Brazil, the Global South must continue to demand more than tokenistic pledges. Real progress requires:

• Timely implementation of financial commitments.
• Equitable distribution of resources.
• Transparent mechanisms to hold donors accountable.

The climate crisis is no longer a distant threat — it is a daily reality for millions across the Global South. COP29’s outcomes, while providing a starting point, are not enough. Transformative action, driven by the principles of fairness and inclusivity, is the only path forward.