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Finance: Everything back on the table
Yesterday, developing countries told the co-chairs of the talks on a new climate finance goal to put all the options they wanted back into a nine-page text that had been slimmed down as a basis for negotiations. They went away last night and did so – and at 8.30 this morning they released a new text, which is 34 pages long.
Fernanda Carvalho, WWF’s climate and energy policy lead, described the ballooning length as “frustrating” because “after three years of preliminary talks, we had hoped to see a more streamlined text at this point”. She noted that the “swollen draft text puts everything back on the table – both good and bad options”.
The basic options on the structure of the New Collective Quantified Goal (NCQG) remain the same in both texts. The first option is a goal for a certain dollar amount, consisting of finance provided by governments and private finance mobilised by their money.
The second is a provision and mobilisation goal, plus a wider investment goal that includes private and domestic finance. As this goal is “multi-layered”, it has been compared to an onion – and it’s what developed countries want.
There are several different proposals for the size of the government finance goal: $100bn+, $1tn+, $1.1tn, $1.3tn+ or $2tn. Developed countries want less and developing countries want more, with the G77 and China umbrella group jointly pushing for $1.3tn+.
On who pays, both texts include the same options – either just developed countries or various criteria to identify a larger set of contributors based on countries’ wealth and emissions. The African Group’s lead negotiator Ali Mohamed said today that attempts to widen the contributor base beyond developed countries were “why we had to reject the earlier draft”.
Newly arrived in the text are specific proposals for minimum amounts that should go to Least Developed Countries (LDCs) and Small Island Developing States (SIDS). The latest text has options for $220bn for LDCs and $39bn for SIDS in grant-equivalent terms each year.
It also introduces options specifying that climate finance should transition away from fossil fuels or “emissions intensive investments”. That might seem obvious but it’s not, for example, to the Asian Infrastructure Investment Bank – which last year counted its investment in a gas-fired power plant in Bangladesh as climate finance.
Both the new and old texts have – outside brackets, suggesting it’s uncontroversial – commitments to phasing out “inefficient fossil fuel subsidies that do not address energy poverty or just transitions”. But the new text adds a target date of 2025 alongside the previous text’s options of 2035 and “as soon as possible”.
MDBs’ big climate-cash goal
Multilateral development banks (MDBs) say they are “walking the talk” on climate finance as pressure piles on them to channel more of their cash into developing countries’ efforts to shift to clean energy and adapt to climate change.
Their overall climate finance provision is estimated to reach $170 billion a year by 2030 – up 30% from a “record high” of $125 billion in 2023, the group of ten MDBs, including the World Bank, said in a joint statement on Tuesday.
Drilling down into the numbers, over 70% of the money ($120 billion) is expected to go to low and middle-income countries, with more than a third of that earmarked for adaptation.
Rob Moore, associate director for public banks and development at think-tank E3G, told journalists on Wednesday that this number is “significant” as it “provides a basis” for the New Collective Quantified Goal (NCQG) to go significantly beyond the existing figure of $100 billion a year.
MDBs have been under the spotlight over the last few years as several country leaders and campaigners have called for wide-ranging reforms that would enable the financial institutions to pour more money into climate action. The World Bank – the largest among them – updated its mission to focus more on climate and made a series of technical tweaks to free up more capital for projects across the world.
Nadia Calviño, president of the European Investment Bank, said in a statement on Tuesday that “the family of multilateral development banks is walking the talk” with its new climate finance commitment. But experts think MDBs could and should go further.
Economists Vera Songwe and Nicholas Stern wrote in an influential report last year that development banks need to triple their lending to $390 billion by 2030 with a substantial chunk of the extra dollars funding climate projects.
In their statement on Tuesday, MDBs warned that their ability to do more largely depends on the commitment of their shareholders from both developed and developing countries. The group of banks urged them to show “greater ambition”, adding that “additional capital” could “unlock more MDB financing”.
Campaigners have also raised concerns over where the MDB’s climate cash actually ends up and on what terms it is provided.
In a report published this week, NGO Recourse said that the lenders’ definition of climate finance is “far from as extensive and stringent as required”, allowing for “troubling and high emitting projects”, like fossil gas, waste-to-energy incineration and airport expansion projects, to count as climate finance. It also highlighted that the majority of funding comes as loans, which contributes to “worsening the debt crisis in many countries”, the NGO said.
The MDBs added on Tuesday that they aimed to mobilise an additional $130 billion a year from the private sector by 2030. The development lenders have repeatedly stressed their role as multipliers of climate finance, using relatively modest amounts of public money to unlock much higher private capital.
But a Climate Home investigation earlier this year found private-sector climate projects enabled with the World Bank’s backing included the renovation of luxury hotels in Senegal, while a vulnerable fishing community next door struggled against rising seas with almost no support.
Meanwhile, some leaders are continuing their search for “innovative” ways to fill up the climate coffers. Barbados’ Prime Minister Mia Mottley used her speech on Tuesday to point out that putting levies on shipping companies, airlines, and bonds and stocks, as well as taxing fossil fuel extraction, could raise hundreds of billions of dollars.
Fourteen countries – including France, Spain, Kenya, Senegal and Colombia – plus the European Commission and the African Union are trying to make those ideas more concrete through a “Coalition for Solidarity Levies”. It announced five new developing-country members in Baku on Tuesday and said it will target carbon-intensive industries.
In brief…
Fossil fuel emissions still rising: Carbon dioxide (CO2) emissions from fossil fuels worldwide are expected to grow 0.8% in 2024, belying predictions of a peak, according to the Global Carbon Project. That’s higher than the average growth rate of 0.6% per year over the past decade and follows a rise of 1.4% in 2023. Global fossil CO2 emissions are now 8% higher than in 2015, when the Paris Agreement was negotiated. Emissions from coal use are set to increase 0.2% in 2024, hitting another record high, due to growth in India and China.
Youth take on NDCs: Youth-led organisations are calling for a “Universal NDC Youth Clause” to be included in countries’ updated national climate plans, urging governments to involve young people more actively in climate strategies. The proposed clause has three pillars: recognising young people as essential drivers of climate action, collaborating with youth in developing the NDCs, and educating young people on the impacts of climate change. At the launch, the organisations noted that “several governments” are expected to announce commitments to the clause in the coming days.
The post COP29 Bulletin Day 3: New finance text and development banks’ 2030 offer appeared first on Climate Home News.
COP29 Bulletin Day 3: Finance text balloons and Brazil presents new NDC
Climate Change
Efforts to green lithium extraction face scrutiny over water use
Mining companies are showcasing new technologies which they say could extract more lithium – a key ingredient for electric vehicle (EV) batteries – from South America’s vast, dry salt flats with lower environmental impacts.
But environmentalists question whether the expensive technology is ready to be rolled out at scale, while scientists warn it could worsen the depletion of scarce freshwater resources in the region and say more research is needed.
The “lithium triangle” – an area spanning Argentina, Bolivia and Chile – holds more than half of the world’s known lithium reserves. Here, lithium is found in salty brine beneath the region’s salt flats, which are among some of the driest places on Earth.
Lithium mining in the region has soared, driven by booming demand to manufacture batteries for EVs and large-scale energy storage.
Mining companies drill into the flats and pump the mineral-rich brine to the surface, where it is left under the sun in giant evaporation pools for 18 months until the lithium is concentrated enough to be extracted.
The technique is relatively cheap but requires vast amounts of land and water. More than 90% of the brine’s original water content is lost to evaporation and freshwater is needed at different stages of the process.
One study suggested that the Atacama Salt Flat in Chile is sinking by up to 2 centimetres a year because lithium-rich brine is being pumped at a faster rate than aquifers are being recharged.
Lithium extraction in the region has led to repeated conflicts with local communities, who fear the impact of the industry on local water supplies and the region’s fragile ecosystem.
The lithium industry’s answer is direct lithium extraction (DLE), a group of technologies that selectively extracts the silvery metal from brine without the need for vast open-air evaporation ponds. DLE, it argues, can reduce both land and water use.
Direct lithium extraction investment is growing
The technology is gaining considerable attention from mining companies, investors and governments as a way to reduce the industry’s environmental impacts while recovering more lithium from brine.
DLE investment is expected to grow at twice the pace of the lithium market at large, according to research firm IDTechX.
There are around a dozen DLE projects at different stages of development across South America. The Chilean government has made it a central pillar of its latest National Lithium Strategy, mandating its use in new mining projects.
Last year, French company Eramet opened Centenario Ratones in northern Argentina, the first plant in the world to attempt to extract lithium solely using DLE.
Eramet’s lithium extraction plant is widely seen as a major test of the technology. “Everyone is on the edge of their seats to see how this progresses,” said Federico Gay, a lithium analyst at Benchmark Mineral Intelligence. “If they prove to be successful, I’m sure more capital will venture into the DLE space,” he said.
More than 70 different technologies are classified as DLE. Brine is still extracted from the salt flats but is separated from the lithium using chemical compounds or sieve-like membranes before being reinjected underground.
DLE techniques have been used commercially since 1996, but only as part of a hybrid model still involving evaporation pools. Of the four plants in production making partial use of DLE, one is in Argentina and three are in China.
Reduced environmental footprint
New-generation DLE technologies have been hailed as “potentially game-changing” for addressing some of the issues of traditional brine extraction.
“DLE could potentially have a transformative impact on lithium production,” the International Lithium Association found in a recent report on the technology.
Firstly, there is no need for evaporation pools – some of which cover an area equivalent to the size of 3,000 football pitches.
“The land impact is minimal, compared to evaporation where it’s huge,” said Gay.


The process is also significantly quicker and increases lithium recovery. Roughly half of the lithium is lost during evaporation, whereas DLE can recover more than 90% of the metal in the brine.
In addition, the brine can be reinjected into the salt flats, although this is a complicated process that needs to be carefully handled to avoid damaging their hydrological balance.
However, Gay said the commissioning of a DLE plant is currently several times more expensive than a traditional lithium brine extraction plant.
“In theory it works, but in practice we only have a few examples,” Gay said. “Most of these companies are promising to break the cost curve and ramp up indefinitely. I think in the next two years it’s time to actually fulfill some of those promises.”
Freshwater concerns
However, concerns over the use of freshwater persist.
Although DLE doesn’t require the evaporation of brine water, it often needs more freshwater to clean or cool equipment.
A 2023 study published in the journal Nature reviewed 57 articles on DLE that analysed freshwater consumption. A quarter of the articles reported significantly higher use of freshwater than conventional lithium brine mining – more than 10 times higher in some cases.
“These volumes of freshwater are not available in the vicinity of [salt flats] and would even pose problems around less-arid geothermal resources,” the study found.
The company tracking energy transition minerals back to the mines
Dan Corkran, a hydrologist at the University of Massachusetts, recently published research showing that the pumping of freshwater from the salt flats had a much higher impact on local wetland ecosystems than the pumping of salty brine. “The two cannot be considered equivalent in a water footprint calculation,” he said, explaining that doing so would “obscure the true impact” of lithium extraction.
Newer DLE processes are “claiming to require little-to-no freshwater”, he added, but the impact of these technologies is yet to be thoroughly analysed.
Dried-up rivers
Last week, Indigenous communities from across South America held a summit to discuss their concerns over ongoing lithium extraction.
The meeting, organised by the Andean Wetlands Alliance, coincided with the 14th International Lithium Seminar, which brought together industry players and politicians from Argentina and beyond.
Indigenous representatives visited the nearby Hombre Muerto Salt Flat, which has borne the brunt of nearly three decades of lithium extraction. Today, a lithium plant there uses a hybrid approach including DLE and evaporation pools.
Local people say the river “dried up” in the years after the mine opened. Corkran’s study linked a 90% reduction in wetland vegetation to the lithium’s plant freshwater extraction.
Pia Marchegiani, of Argentine environmental NGO FARN, said that while DLE is being promoted by companies as a “better” technique for extraction, freshwater use remained unclear. “There are many open questions,” she said.
AI and satellite data help researchers map world’s transition minerals rush
Stronger regulations
Analysts speaking to Climate Home News have also questioned the commercial readiness of the technology.
Eramet was forced to downgrade its production projections at its DLE plant earlier this year, blaming the late commissioning of a crucial component.
Climate Home News asked Eramet for the water footprint of its DLE plant and whether its calculations excluded brine, but it did not respond.
For Eduardo Gigante, an Argentina-based lithium consultant, DLE is a “very promising technology”. But beyond the hype, it is not yet ready for large-scale deployment, he said.
Strong regulations are needed to ensure that the environmental impact of the lithium rush is taken seriously, Gigante added.
In Argentina alone, there are currently 38 proposals for new lithium mines. At least two-thirds are expected to use DLE. “If you extract a lot of water without control, this is a problem,” said Gigante. “You need strong regulations, a strong government in order to control this.”
The post Efforts to green lithium extraction face scrutiny over water use appeared first on Climate Home News.
Efforts to green lithium extraction face scrutiny over water use
Climate Change
Maryland’s Conowingo Dam Settlement Reasserts State’s Clean Water Act Authority but Revives Dredging Debate
The new agreement commits $340 million in environmental investments tied to the Conowingo Dam’s long-term operation, setting an example of successful citizen advocacy.
Maryland this month finalized a $340 million deal with Constellation Energy to relicense the Conowingo Dam in Cecil County, ending years of litigation and regulatory uncertainty. The agreement restores the state’s authority to enforce water quality standards under the Clean Water Act and sets a possible precedent for dozens of hydroelectric relicensing cases nationwide expected in coming years.
Climate Change
A Michigan Town Hopes to Stop a Data Center With a 2026 Ballot Initiative
Local officials see millions of dollars in tax revenue, but more than 950 residents who signed ballot petitions fear endless noise, pollution and higher electric rates.
This is the second of three articles about Michigan communities organizing to stop the construction of energy-intensive computing facilities.
A Michigan Town Hopes to Stop a Data Center With a 2026 Ballot Initiative
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