On the eve of the G20 summit in Rio de Janeiro, UN climate chief Simon Stiell urged leaders of the world’s major economies to send a strong message of support for global climate finance. Such a step, according to Stiell, could unlock crucial agreements at COP29 in Baku, where negotiations are moving slowly to increase resources to mitigate the impacts of climate change.
“The G20 must provide clear and comprehensive signals,” Stiell said in his letter, stressing the need to increase grants, loans and debt relief so that vulnerable countries can take bolder climate action without the burden of debt service costs.
Business sector support and challenges in Baku
Business leaders joined the call, with coalitions such as We Mean Business and the Brazilian Council for Sustainable Development, calling for policies that accelerate the energy transition and encourage private investment in clean energy.
At COP29, progress has been limited. Negotiations are seeking to set an annual climate finance target of mobilizing at least $1 trillion by 2030, according to economists. But differences over the amount and which countries should contribute persist, slowing down agreements.
National divisions and priorities
European negotiators have pointed to resistance from major oil producers such as Saudi Arabia, which have blocked key discussions on the global transition away from fossil fuels.
Meanwhile, countries such as Uganda are stressing the urgency of securing agreements on affordable financing for clean energy projects. “Without resources, the energy transition remains a distant dream,” said Ruth Nankabirwa, Uganda’s Minister of Energy.
Time is running out
With the draft now down to 25 pages, much work remains to be done to reach consensus. Stiell and other climate leaders stress that cooperation among nations is essential to reach agreements that mark a turning point in the fight against climate change.
The G20 summit is shaping up to be a crucial stage to generate the necessary momentum and ensure the success of COP29 in its goal of financing a sustainable energy future.