Connect with us

Published

on

Can anyone remember a time when we didn’t start the year thinking that this time climate finance was key? Yet there is something historic and different this year. What’s on the table is a perfect combination for things to go really right or really wrong.

Last year ended with a historic outcome. After more than 30 years, the UN climate negotiations finally identified the core driver of the crisis – fossil fuels – and set out a series of steps to phase them out, which will require significant investment.

How significant? The high-level expert group on climate finance estimates that developing countries (excluding China) need $2.4 trillion annually in climate investment by 2030. Not an easy feat.

Renewables are the cheapest form of electricity generation in the majority of countries. They are projected to become even more affordable, as technology advancements and economies of scale drive down costs.

Witness bribing minister’s family own Congolese carbon credit company

They also offer greater price stability since they don’t rely on fuel purchases. However, the upfront capital investment needed is often higher than for fossil power plants. For many countries where market interest rates exceed 10 percent, this puts clean energy ambitions out of reach.

On top of this, mounting climate impacts are hitting the poorest and most vulnerable communities around the world. The cruel injustice of the climate crisis is that those who did the least to cause the problem are hit first and worst by its impacts, and have the least capacity to invest in their resilience.

New finance foundations

We know what needs to be delivered at Cop29 in Azerbaijan: all the way back in 2015 governments agreed to set a new climate finance goal, beyond the existing $100 billion per year target, before 2025.

But there are three foundations governments need to lay this year that can actually make an ambitious goal achievable: reforming multilateral development banks, addressing debt, and initiating innovative taxation.

Let’s start with the oldest of the multilateral development banks (MDBs). The World Bank turns 80 this year and is notorious for its overbearing and cumbersome bureaucracy.

Germany and US warn Brazil against using Amazon Fund to pave rainforest road

MDBs were created to provide financing to countries on more favourable terms than the market to invest in development, but have grown long in the tooth.

The ideas for what needs to change are all there: fully aligning with the Paris Agreement’s goals by ending financing for fossil fuels; reforming their blunt eligibility rules to allow middle-income countries to access cheaper financing for climate projects; and raising more capital through both conventional—government contributions and bond issuances—and unconventional means, such as rechanneling IMF Special Drawing Rights.

Debt debates

On debt, governments have finally recognised the link between countries’ fiscal space and their ability to undertake climate action, and emphasised the importance of low-cost financing to address this. The pandemic has turbocharged a sovereign debt crisis that was already brewing before 2020. The IMF has warned that 60 percent of low-income countries and 25 percent of emerging markets are in or near debt distress.

Underlying these countries’ fiscal situations are the fingerprints of climate change. Many developing countries face a climate investment trap: existing debts and high interest rates make it costly to borrow to invest in climate mitigation and adaptation.

As a result, they are more vulnerable when disasters hit, meaning higher recovery costs and a hit to credit ratings, making future investments even more expensive.

The United Nations Environment Programme estimates that climate change has raised average borrowing costs for vulnerable countries by 117 basis points, equating to an extra $40 billion in interest payments over the past decade. Countries need a way to break out of the climate investment trap if the world is to meet its climate goals.

“A la carte menu”: Saudi minister claims Cop28 fossil fuel agreement is only optional

The current multilateral process for dealing with sovereign debt, the G20 Common Framework, is not delivering; as a piecemeal approach, it is neither common nor a framework. Major economies in the G20 need to acknowledge this and develop a new fit-for-purpose strategy for dealing with debt.

A promising new initiative launched at Cop28 was the Expert Review on Debt, Nature and Climate. Led by Presidents Macron of France, Petro of Colombia and Ruto of Kenya, the review will bring together leading experts to independently examine how sovereign debt can hinder climate ambition and explore solutions.

Once debt crises are addressed, more sustainable financing options must be made available for countries, otherwise they are likely to fall back into crisis. Providers of climate finance must ensure that their finance is structured to best address country and project needs.

Too often it is the other way around: due to political constraints, contributors have preferences for debt-creating instruments and try to shape climate projects to fit these in ways that may not deliver the biggest benefits for people or the planet.

New taxes

Lastly, the most controversial words in a major election year are going to be unavoidable: new taxes. We know that current government contributions to climate funds have been a drop in the ocean until now.

Getting polluters to pay the costs of their actions—such as taxing the fossil fuel industry’s $4 trillion-a-year profits, a levy on the emissions of the shipping industry, and surcharges on business and first-class flights—offer much more equitable ways of raising revenues to finance the response to climate change.

Antigua and Barbuda, Barbados, France, Kenya and Spain have already come together to set up a Taskforce on International Taxation that will look into these and other measures and agree on specific proposals for raising additional climate finance by Cop30.

Progress on all of these fronts is essential to lay the groundwork for a successful finance outcome at Cop29. We have to learn from history: setting climate finance goals without the revenues and systems to deliver on them is a recipe for disappointment. This time must be different.

The post High stakes for climate finance in 2024 appeared first on Climate Home News.

High stakes for climate finance in 2024

Continue Reading

Climate Change

Q&A: “False” climate solutions help keep fossil fuel firms in business

Published

on

From cross-border pipelines for green hydrogen that can also carry natural gas, to sustainable aviation fuel that threatens forests, and costly carbon capture projects that are used to recover more oil, “false solutions” to climate change have gained ground in recent years, often backed by fossil fuel firms.

A new research paper, published last month in the journal Energy Research and Social Science, shines a light on this trend, exploring such projects that have also caused environmental injustices such as air pollution or depriving communities of their source of income.

The study by the Institute of Environmental Science and Technology at the Universitat Autònoma de Barcelona (ICTA-UAB), in collaboration with the University of Sussex, is based on 48 cases of environmental conflicts around the world, contained in the ICTA-UAB’s Global Atlas of Environmental Justice (EJAtlas).

The selected cases range from Norway’s Trollvind offshore wind farm, built partly to decarbonise the power supply to the Troll and Oseberg oil and gas fields; to US fossil fuel firms working with the dairy industry to turn manure into biogas; and a tree plantation in the Republic of Congo proposed by TotalEnergies, where locals say they have been prevented from accessing their customary farmland.

“House of cards”: Verra used junk carbon credits to fix Shell’s offsetting scandal

The researchers argue that “false solutions” – which also include large-scale carbon offsetting projects, many of which have been discredited – help to reinforce the political and economic power of the industry that is responsible for the climate crisis, and are undermining the global energy transition.

Climate Home News spoke to co-author Freddie Daley, a research associate at the University of Sussex’s Centre for Global Political Economy, about the paper’s findings and implications for climate policy.

Q: What was your motivation in exploring these types of “false solutions” to the climate crisis?

A: It’s very much a reaction to the fossil fuel industry insisting these technologies are solutions, rather than us creating a typology of things that are not working. All of the [paper’s] authors are very keen on a habitable planet – and we’re not going to let perfection be the enemy of the good.

But this is a call [to] arms to say that governments need to be very careful about what they’re giving public subsidy to, because in a complex situation – where there’s an urgency for reducing emissions but also for creating sustainable livelihoods and for ensuring that the needs of people living in and around these projects are met – I think it’s very important to scrutinise the viability of these schemes.

The starting point was off the back of oil majors – or so-called integrated energy companies – coming out and being very bullish on sustainability and net zero, and alongside this, proffering that they were part of the solution to climate mitigation, energy transition, job creation, green growth. And we took this as a problem statement to begin our analysis: How can fossil companies be part of the solution?

Q: What did your work reveal about “false solutions” and how can it deepen understanding of them?

A: “False solutions” is a term that’s been used for many, many years by Indigenous groups and by frontline communities – so we wanted to formalise it because it’s not really been engaged with in academic literature so far. We thought it was quite a big gap that needed to be filled.

We thought how can we categorise it? How can we help redefine it? What are the characteristics of these false solutions? So we dug into the data, the EJ Atlas, across many technologies – from hydrogen through to carbon offsets and biofuels, but also renewable energy projects, because we were finding that renewable energy projects causing conflicts were either being used to fuel fossil fuel production, such as solar panels or wind turbines to run rigs, which we thought was an interesting pattern – and also utility-scale renewable energy projects which were operated by fossil fuel firms.

Out of total energy generation, fossil fuel companies’ production of renewables is a tiny, tiny fraction. Why do these projects exist, and how do they operate within the broader energy system? We wanted to look at what their function was – and going through the data and the lived experience of the communities on the frontlines of these projects, we found that they’re very much used to legitimise fossil fuel expansion or just continued operation.

Is the world’s big idea for greener air travel a flight of fancy?

And then we also looked at the governmental role within the institutions as well – so fossil fuel firms using these technologies and these false solutions as ways to garner public subsidy, particularly for carbon capture and storage (CCS) and hydrogen, to some degree.

And what we found across all these cases was they did very little to reduce emissions and generated environmental conflicts… and they ultimately delayed an energy transition, or the sort of industrial transformation that’s required to deliver deep and rapid emissions cuts.

Q: Shouldn’t fossil fuel companies be able to use all the climate solutions available to help reduce their emissions while the world is transitioning away from coal, oil and gas?

A: My response [to that argument] is to actually look at the data. When people say hydrogen and CCS are very important and they’re crucial, I don’t disagree with the idea that we might need some sort of technology to suck carbon out the atmosphere at some point in the future. But currently, the operational projects are not delivering that, and fossil fuel projects should not be expanded on the premise that future technologies can undo their emissions.

Just a few weeks ago, the Financial Times ran a very big story about how most of the oil majors have cancelled all their hydrogen projects because the scale of it’s not there yet, and they don’t think it’s going to stack up. These are companies with huge amounts of capital in an easy-to-abate sector – energy – saying we’re not going to do this. So you have to question the plan of hydrogen as a solution, if even the people that have the expertise and the capital to make it work are saying we’re not going to do this because we cannot make it work.

Clean hydrogen hype fades as high costs dampen demand

Likewise with carbon capture, many of the large energy projects and energy producers that have garnered vast amounts of public subsidies on the promise that they will do carbon capture are cutting those research projects down.

So at this stage in the energy transition – which some people call the “mid transition”, the difficult part – I think we need to scrutinise these technologies and look at what they do deliver on a project-by-project basis, and then on an aggregate basis.

Q: High-carbon industries say they need government subsidies to cover the high cost of researching, developing and creating markets for new technologies to help combat climate change. Is this justified?

A: I’m a big believer in the idea that the energy transition – the ideal energy transition, which is one of scaling up new industry while phasing out an old one – is going to require not only public money, but public coordination. That means states actively stewarding investment, picking winners and sequencing what is going to be a highly disruptive process.

I think public subsidy is necessary. We need to see deep and rapid decarbonisation, especially in wealthy industrialised states, but it should be used in a very targeted way to scale up technologies which have a marked impact on emissions and also uplift welfare as well – so heat pumps insulating homes in poorer communities. With these sort of things, you get your bang for your buck.

Comment: The battle over a global energy transition is on between petro-states and electro-states

You don’t get bang for your buck giving BP and Shell money to pilot a carbon capture and storage facility. It’s an extension of existing relationships between big business and government that needs to be looked at closely in the context of energy transition, because ultimately, these companies are not serious about transitioning at the requisite speed or scale to stave off climate disaster.

Look at both oil and gas companies’ ownership of renewable assets (1.42% of operational renewable projects around the world) and the renewables share of their primary generation (0.13%). They have the capital, and they have the know-how to do this. They haven’t done it. The question is, why do they need more public subsidy to continue not doing it?

This interview was shortened and edited for clarity.

The post Q&A: “False” climate solutions help keep fossil fuel firms in business appeared first on Climate Home News.

Q&A: “False” climate solutions help keep fossil fuel firms in business

Continue Reading

Climate Change

States Say They Need More Help Replacing Lead Pipes. Congress May Cut the Funding Instead.

Published

on

The U.S. House voted to cut millions promised for the work this year. The Senate will vote this week, as advocates and some lawmakers push back.

The Senate is taking up a spending package passed by the House of Representatives that would cut $125 million in funding promised this year to replace toxic lead pipes.

States Say They Need More Help Replacing Lead Pipes. Congress May Cut the Funding Instead.

Continue Reading

Climate Change

6 books to start 2026

Published

on

Here are 6 inspiring books discussing oceans, critiques of capitalism, the Indigenous fight for environmental justice, and hope—for your upcoming reading list this year.

The Deepest Map: The High-Stakes Race to Chart the World’s Oceans
by Laura Trethewey (2023)

The Deepest Map: The High-Stakes Race to Chart the World’s Oceans

by Laura Trethewey (2023)

This book reminds me of the statement saying that people hear more about the moon and other planets in space than what lies beneath Earth’s oceans, which are often cited as ‘scary’ and ‘harsh’. Through investigative and in-depth reportage, ocean journalist and writer Laura Trethewey tackles important aspects of ocean mapping.

The mapping and exploration can be very useful to understand more about the oceans and to learn how we can protect them. On the other hand, thanks to neoliberal capitalism, it can potentially lead to commercial exploitation and mass industrialisation of this most mysterious ecosystem of our world.

The Deepest Map is not as intimidating as it sounds. Instead, it’s more exciting than I anticipated as it shows us more discoveries we may little know of: interrelated issues between seafloor mapping, geopolitical implications, ocean exploitation due to commercial interest, and climate change.


The Code of Capital: How the Law Creates Wealth and Inequality
by Katharina Pistor (2019)

The Code of Capital: How the Law Creates Wealth and Inequality

by Katharina Pistor (2019)

Through The Code of Capital, Katharina Pistor talks about the correlation between law and the creation of wealth and inequality. She noted that though the wealthy love to claim hard work and skills as reasons why they easily significantly generate their fortunes, their accumulation of wealth would not last long without legal coding.

“The law is a powerful tool for social ordering and, if used wisely, has the potential to serve a broad range of social objectives: yet, for reasons and with implications that I attempt to explain, the law has been placed firmly in the service of capital,” she stated.

The book does not only show interesting takes on looking at inequality and the distribution of wealth, but also how those people in power manage to hoard their wealth with certain codes and laws, such as turning land into private property, while lots of people are struggling under the unjust system.


The Intersectional Environmentalist: How to Dismantle Systems of Oppression to Protect People + Planet
by Leah Thomas (2022)

The Intersectional Environmentalist: How to Dismantle Systems of Oppression to Protect People + Planet

by Leah Thomas (2022)

Arguing that capitalism, racism, and other systems of oppression are the drivers of exploitation, activist Leah Thomas focuses on addressing the application of intersectionality to environmental justice through The Intersectional Environmentalist. Marginalised people all over the world are already on the front lines of the worsening climate crisis yet struggling to get justice they deserve.

I echo what she says, as a woman born and raised in Indonesia where clean air and drinkable water are considered luxury in various regions, where the extreme weather events exacerbated by the climate crisis hit the most vulnerable communities (without real mitigation and implementations by the government while oligarchies hijack our resources).

I think this powerful book is aligned with what Greenpeace has been speaking up about for years as well, that social justice and climate justice are deeply intertwined so it’s crucial to fight for both at the same time to help achieve a sustainable future for all.


As Long As Grass Grows
by Dina Gilio-Whitaker (2019)

As Long As Grass Grows

by Dina Gilio-Whitaker (2019)

Starting with the question “what does environmental justice look like when Indigenous people are at the centre?” Dina Gilio-Whitaker takes us to see the complexities of environmental justice and the endless efforts of Indigenous people in Indian country (the lands and communities of Native American tribes) to restore their traditional cultures while healing from the legacy of trauma caused by hundreds of years of Western colonisation.

She emphasizes that what distinguishes Indigenous peoples from colonisers is their unbroken spiritual relationship to their ancestral homelands. “The origin of environmental justice for Indigenous people is dispossession of land in all its forms; injustice is continually reproduced in what is inherently a culturally genocidal structure that systematically erases Indigenous people’s relationships and responsibilities to their ancestral places,” said Gilio-Whitaker.

I believe that the realm of today’s modern environmentalism should include Indigenous communities and learn their history: the resistance, the time-tested climate knowledge systems, their harmony with nature, and most importantly, their crucial role in preserving our planet’s biodiversity.


The Book of Hope
by Jane Goodall and Douglas Abrams with Gail Hudson (2021)

The Book of Hope

by Jane Goodall and Douglas Abrams with Gail Hudson (2021)

The Book of Hope is a marvelous glimpse into primatologist and global figure Jane Goodall’s life and work. The collaborator of the book, journalist Douglas Abrams, makes this reading experience even more enjoyable by sharing the reflective conversations between them, such as the definition of hope, and how to keep it alive amid difficult times.

Sadly, as we all know, Jane passed away this year. We have lost an incredible human being in the era when we need more someone like her who has inspired millions to care about nature, someone whose wisdom radiated warmth and compassion. Though she’s no longer with us, her legacy to spread hope stays.


Ocean: Earth’s Last Wilderness
by David Attenborough and Colin Butfield (2025)

Ocean: Earth’s Last Wilderness

by David Attenborough and Colin Butfield (2025)

“I could only have dreamed of recording in the early stages of my career, and we have changed the ocean so profoundly that the next hundred years could either witness a mass extinction of ocean life or a spectacular recovery.”

The legend David Attenborough highlights how much humans have yet to understand the ocean in his latest book with Colin Butfield. The first part of it begins with what has happened in a blue whale’s lifetime. Later it takes us to coral reefs, the deep of the ocean, kelp forest, mangroves, even Arctic, Oceanic seamounts, and Southern Ocean. The book contains powerful stories and scientific facts that will inspire ocean lovers, those who love to learn more about this ecosystem, and those who are willing to help protect our Earth.

To me, this book is not only about the wonder of the ocean, but also about hope to protect our planet. Just like what Attenborough believes: the more people understand nature, the greater our hope of saving it.


Kezia Rynita is a Content Editor for Greenpeace International, based in Indonesia.

6 books to start 2026

Continue Reading

Trending

Copyright © 2022 BreakingClimateChange.com