The Bonn Climate Change Conference marked the halfway point on the road to COP29, as humanity’s push to limit global temperature rises to 1.5 Celsius this century enters its second phase.
UN Climate Change Executive Secretary Simon Stiell kicked off the conference with a stark warning. Although the last 30 years of collective effort have succeeded in reducing the trajectory of global heating this century from around 5 degrees to 2.7, this is still ruinously high.
Finance, which Stiell called “the great enabler of climate action,” was a key focus in Germany over the last 10 days, as policymakers sought to get the Paris Agreement’s machinery firing on all cylinders.
The high-level meetings set about creating a third round of Nationally Determined Contributions (NDCs), national climate plans Stiell deemed “among the most important policy documents produced so far this century.”
Transparency and climate reporting were also high on the agenda, with parties to the Paris Agreement due to submit their first transparency reports this year, along with the rapid development of National Adaptation Plans to ensure economies and vulnerable communities are insulated from climate change impacts.
Inclusivity and equality were also focal points for discussion, particularly the involvement of indigenous communities and young people in the climate transition.
As we look ahead to COP29, the spotlight is on the rapid acceleration of climate finance, mechanisms to quantify parties’ efforts and ensure accountability, and the role of international collaboration in securing a just and equitable transition to a green economy.
Resilient40 Founder, Michael Kakande, was on the ground at the Bonn conference, getting a read on where we are in the climate transition, and how far we still need to go. Here are his key takeaways:
On Finance: The need for specificity about the quality of finance was emphasized. It was acknowledged that public finance alone is inadequate and can lead to more debt, with 60% of climate finance being debt-inducing.
Globally, we need to move beyond debt-building public finance to focus on more sustainable and equitable sources of funding.
Ensuring finance is not only about meeting a numerical target but also addressing rising needs, including loss and damage, in the new financial goals is essential.
There is a need to think innovatively about transforming the existing infrastructure, and leveraging public-private partnerships will play a key role. Governments, businesses, financial institutions and international organisations will need to work in lockstep to convert ambition into action.
There is a strong business case for private sector organisations to deliver the investment that will place them at the vanguard of this transformation.
On Public-Private Collaboration: With days left for NDC submissions next year, it is crucial that the focus shifts to swift and just implementation involving all of society.
To achieve maximum acceleration, it is essential that government cabinets and boardrooms align on priorities. Spotlighting investable solutions and breaking down silos between sectors will be vital. Additionally, it is necessary to continue the dialogue from COP28 and build momentum towards COP29.
We will of course be doing our utmost to facilitate that throughout 2024 and beyond, through our youth regional engagements, partnership and coalition-building.
On SMEs: SMEs are incredibly significant in the context of climate finance and renewable technology innovation. They represent 50% of the global market and 80% of employment, making them the backbone of the global economy.
SMEs are responsible for 25-30% of private sector innovation in renewable technologies. Therefore, supporting SMEs is crucial for driving sustainable economic growth and technological advancements in the fight against climate change.
On Fossil Fuels and the ‘Just Transition’: The divergence in conversations about phasing out fossil fuels between the global north and south is rooted in differing interpretations of a ‘just transition.’ There seems to be a collective memory oversight about promises made in previous COP meetings, such as COP28.
The lack of dialogue between countries in Bonn has been a significant issue, with no substantial conversations addressing the specifics of fossil fuel phase-out tailored to the distinct needs of the global north and south.
To bridge this gap, it is essential to facilitate meaningful dialogues between countries to understand and address their specific challenges and needs regarding fossil fuel phase-out.
We need to clearly define what a just transition means for different regions to ensure fair and equitable progress, and we must revisit and uphold commitments made in previous climate agreements to maintain trust and accountability.
In Conclusion: The mood among officials and policymakers was one of urgency and concern, particularly as current trends point towards a 2.7 degrees Celsius annual rise in global temperatures, as noted by the UNFCCC chair.
There was a call for more focus on locally led adaptation efforts, highlighting a structural problem in the way dialogues are conducted. Many cities that could benefit from these discussions have not been participating in the SB 60 meetings.
There is significant in the lack of movement on finance, with a need for a greater emphasis on quality, justice, transparency, and income sources in climate finance.
Officials pushed for the establishment of a New Collective Quantified Goal (NCQG), which is intended to culminate in the parties agreeing a substantial new global climate finance target.
The Resilient40 will have a significant presence at COP29 across the Blue Zone at the COP Water Pavilion as a core partner providing a nexus for negotiations among frontrunners in the global effort to finance the transition to net zero.
