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.
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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.
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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.
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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.
Amira Odeh Quiñones is a hydrologist and Caribbean organiser for the 350.org climate campaign group
El Niño, likely to be one of the strongest in modern history, has arrived on Caribbean shores.
Drought is slowly creeping up on our islands. But unlike the fiery wildfires ravaging parts of Europe, there’s no smoke signalling the damage being done, no sirens to warn of the danger. Only announcements from public health officials to stay indoors and remain hydrated — as if outdoor workers and farming communities have the luxury to heed such advice.
During El Niño, strong atmospheric winds alter rain patterns and trap heat across the Caribbean. But while we have experienced El Niño many times before, it has become very visible in recent years how climate change is making this natural phenomenon worse.
Across the Greater Antilles, temperatures are soaring past 38°C (100°F), with real-feel indexes reaching a gruelling 43°C in parts of Puerto Rico where I live. Cuba has it worse. Widespread power outages mean that methods for cooling down are unavailable for most of the day, leaving millions of vulnerable people at risk of heat stroke when temperatures hit 38°C.
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During the last strong drought a decade ago, I had water only two days a week in my home. Today, there are many families whose taps are about to run completely dry. Water authorities have already begun strict rationing in some municipalities, with more on the list scheduled for rationing if conditions don’t change.
Water rationing is far more than an inconvenience; it is an immediate health risk. This means thousands of people need to constantly haul heavy buckets up flights of stairs just so they could bathe, cook, stay hydrated – the basics of survival.
Heat causes health problems
Puerto Rico is home to roughly 300,000 elderly residents. Many live alone, isolated and without support. They risk severe physical injury when carrying heavy water containers, and are wont to suffer from silent heat exhaustion in unventilated rooms.
Furthermore, when water shortages force residents to store water in open household containers, it inadvertently creates breeding grounds for Aedes aegypti mosquitoes. Paired with scorching temperatures that tend to shorten the mosquito breeding cycle, the region is facing explosive outbreaks of dengue fever that endanger our most vulnerable: children and the elderly.
The economic fallout is equally devastating. Dry fields mean millions of dollars in lost crops, forcing small agricultural businesses to collapse, needing urgent government relief to survive. Extreme fuel shortages have already paralyzed Cuba’s agricultural sector, cutting food output by 60% – the El Niño dry spell threatens to decimate it.
At sea, warmer ocean waters fuel massive influxes of sargassum seaweed. Rotting sargassum chokes our beaches, destroying the local tourism industry that so many working families rely on. Tangled seaweed also damages nets and boat engines, slashing fish catches and driving up equipment costs for local fishers.
In the south of Puerto Rico, the coastal town of La Parguera is currently witnessing a historic amount of sargassum on its shores. This has halted most of the boating activity in the area, which is the seaside town’s main tourist draw and economic driver.
All over the Caribbean, from town halls to local group gatherings, the story I hear is always the same: constant headaches, lost work hours, failing health, and a sense that quality of life is silently being stolen. The compounding effects of heatwaves, drought, and marine destruction are exhausting our people, our islands.
Climate change to blame
Climate change makes each El Niño year hotter and more damaging. Higher baseline global temperatures increase the energy and moisture available for extreme weather. Latest projections show that El Niño may push the monthly global average temperature past 2°C of warming for the first time in early 2027. In the Caribbean islands, that will not just be breaking records – it’ll be breaking lives.
Recently, I had the opportunity to share a panel with climate scientists behind what is known as the field of “attribution science” – or the science that compares today’s climate conditions to what the Earth’s climate would be like without human activity, particularly burning fossil fuels. They’re unequivocal: it’s no longer a question of whether extreme weather is caused by climate change, it’s just a question of how much.
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Attribution science recently got a boost from the U.S.’ top scientific advisory body. The National Academies of Sciences, Engineering and Medicine recognized that researchers’ methods have advanced considerably in recent years, resulting in better assessments on how much extreme weather can be attributed to human-caused climate change. It noted that attribution findings could be relevant in some types of legal cases, including those seeking damages from oil companies for climate impacts.
This crisis, which is already taking a heavy toll on our communities’ survival, needs real, urgent, and structural action that goes beyond aid. With similar droughts now gripping parts of Asia and Africa, we’re falling into the familiar narrative of treating the looming humanitarian crisis as if no one was to blame, as if it is being caused solely by a natural phenomenon we can’t control.
It’s not. The world was already on fire before its regular visitor, El Niño, came. While we need humanitarian action, we need climate action too, in order to permanently put out the flames.
The post When taps run dry in the Caribbean, it’s not enough to blame El Niño appeared first on Climate Home News.
When taps run dry in the Caribbean, it’s not enough to blame El Niño
China has released a five-year plan dedicated to addressing climate change.
The 15th five-year plan for a national response to climate change is the latest in a series to outline in-depth climate and energy targets for the 2026-2030 period.
These include five-year plans for “building a Beautiful China”, developing a “new-type energy system” and developing renewable energy.
There are also separate “action plans” for the 2026-2030 period, such as for peaking carbon emissions.
China has pledged to peak its emissions before 2030 and reach carbon neutrality before 2060.
The new plan does not include any major new targets, instead consolidating and reaffirming existing policies.
Nevertheless, it includes significant signals on key policy areas, such as non-carbon dioxide (CO2) greenhouse gases, global climate governance and carbon markets.
Below, Carbon Brief examines some of the notable elements in the latest five-year plan and what it reveals about China’s policy direction through to 2030.
What does the climate plan cover?
The Ministry of Ecology and Environment (MEE) released the plan in late July, in unison with 18 other government departments. These include the National Development and Reform Commission (NDRC), China’s top economic planning agency, and the National Energy Administration.
The document covers a range of topics, including CO2 emissions, other greenhouse gases (non-CO2 GHGs), carbon markets, carbon footprints, climate adaptation and international cooperation on climate change.
For the first time at the five-year plan level, the plan creates a comprehensive target system covering all areas of climate policy, say officials in a MEE Q&A.
They describe it as “the main policy instrument” for advancing China’s climate action during 2026-2030.
China rarely issues high-level multi-year policies dedicated to “responding to climate change”. In 2014, the NDRC published a plan on the topic running through to 2020, but this was not linked to a five-year plan period.
Qin Yan, principal analyst at ClearBlue Markets, tells Carbon Brief that the plan shows that China’s climate governance has reached “an unprecedented strategic level”.
She adds that the plan creates an “all-encompassing target system” to support China’s Paris Agreement climate pledges for 2030 and 2035.
In its 2030 pledge, China aimed to peak emissions “before 2030” and reduce carbon intensity – its emissions per unit of GDP – by more than 65% from 2005 levels.
Last year, president Xi Jinping personally announced China’s 2035 pledge to cut China’s greenhouse gas emissions to 7-10% below peak levels by 2035, while “striving to do better”.
The five-year plan marks a new phase in China’s climate policy, according to researchers at CIB Research, an economic research body affiliated with the Industrial Bank, whose largest shareholder is the Fujian provincial government.
Their analysis adds that the plan represents a broad effort to strengthen China’s climate-governance system, implementation mechanisms and underlying capacity.
Nevertheless, several headline targets and policies in the document simply reiterate already established plans.
These include:
- Cutting carbon intensity by 17% across the five years
- Reducing carbon intensity per product in industries under China’s carbon market by 3%
- Substituting fossil fuels with renewables
- Strengthening climate adaptation
- Supporting the “free flow” of cleantech
What does the plan say about non-CO2 GHGs?
The plan also goes into detail on China’s approach to non-CO2 GHGs. This includes reaffirming a target of an emissions “reduction capacity” from these gases totalling 30m tonnes of CO2 equivalent (MtCO2e) by 2030, although the baseline is unclear.
The target previously appeared in the overarching five-year plan, as well as the plan for building a “Beautiful China”.
The goal refers to emissions reductions, which can be realised through implementing current non-CO2 emissions reduction policies and projects, says Chen Meian, programme director and senior analyst at the Institute for Global Decarbonization Progress (iGDP).
She adds that it is “relatively achievable”, with sources including increasing the number of coal-mine methane utilisation projects.
She points to an MEE explanatory note for a draft methodology under the China Certified Emission Reduction (CCER) scheme, China’s voluntary carbon-credit market. Chen says the note suggests that projects using ventilation air methane and coal-mine methane with concentrations below 8% alone could deliver around 20MtCO2e of reduction by 2030.
The note states that, currently, such projects are estimated to be able to “generate annual emission reductions of approximately 4.5MtCO2e”.
In addition, Chen says, measures targeting industrial nitrous oxide (N2O) and hydrofluorocarbons (HFCs) could help make up the remainder needed to meet the target.
According to iGDP analysis of biennial reports submitted by China to the UNFCCC, China emitted around 14,000MtCO2e of GHGs in 2021, excluding land use, land-use change and forestry (LULUCF).
Non-CO2 GHGs accounted for around 2,700MtCO2e, or 19%, of the total, the majority of which was methane, as shown in the figure below.
China’s plans to curb these super-pollutants in the five-year period include coal-mine methane utilisation projects, end-of-pipe destruction technologies for HFCs and guidance on the use of catalysts to reduce N2O emissions.
The plan also calls for the recovery and replacement of sulphur hexafluoride (SF6) in power equipment.
For Chen, the plan’s focus on SF6 control is particularly noteworthy. She says the gas is “finally receiving policy attention” and that proactive action is “timely and will help avoid future emissions growth” as China’s power system expands.
What does the plan say about global climate governance?
One of the plan’s clearest objectives for international cooperation is for China to play a more active role in global climate governance.
By 2030, it says China should markedly increase its “influence, guiding power, shaping power and moral appeal” in this area.
It says China’s climate action could also feed into the Global Governance Initiative, a policy initiative aimed at reforming the global governance system.
China will also aim to “build a new narrative on climate governance”, it adds.
Prof Thomas Hale, a professor in public policy at the University of Oxford’s Blavatnik School of Government, writes on LinkedIn that the plan “marks a major rhetorical shift” towards China being increasingly willing to “lead and shape” global climate action.
Another clear focal point for international cooperation is in carbon markets.
The plan calls for China to expand the global influence of its carbon market, such as through international rule-setting, cooperation on standards and by hosting the China Carbon Market Conference.
Qin says China’s more active role in global carbon pricing is already evident in the launch of the open coalition on compliance carbon markets with the EU and Brazil. This coalition is expected to adopt a work plan at the China Carbon Market Conference in September.
Qin also notes that China “could become the world’s largest [carbon] offset buyer” as its energy transition progresses.
The country would, therefore, “benefit from helping shape global rules under the Article 6 framework [for carbon trading under the Paris Agreement]”, she adds.
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The post Q&A: What is in China’s new five-year plan for climate change? appeared first on Carbon Brief.
Q&A: What is in China’s new five-year plan for climate change?
About a quarter of the countries signed up to the Paris Agreement are still breaching its rules by failing to submit a new national climate plan, 18 months after the February 2025 deadline.
Forty-five nations had not submitted a plan known as a nationally determined contribution (NDC), according to the Paris Agreement Implementation and Compliance Committee’s (PAICC) newly-published report of its 7-10 July 2026 meeting. One, Oman, has published it since the meeting.
Twelve countries ignored the committee’s repeated attempts to find out why they had not yet produced a climate plan, the report said. They will be invited to the committee’s next meeting, from September 1-4, so it can identify the challenges and constraints they face.
Members of the committee are divided, as they were at their last meeting, on whether to name those countries publicly and will debate the question again in September.
The PAICC does not have any power to punish governments, as building these powers into the Paris Agreement was thought to be so controversial that it could have stopped some governments from joining, experts have previously told Climate Home News.
A key requirement of the landmark 2015 Paris Agreement is that governments publish a more ambitious NDC every five years, setting targets to reduce their planet-heating emissions and outlining their policies to adapt to climate change, in order to meet the accord’s goals on limiting global warming and protecting people from its effects.
The latest set – the third round of plans, with new targets for 2035 – was due in 2025.
Some medium-sized emitters
Countries without an updated NDC include Egypt, Vietnam, Argentina and the Phillippines, all of which rank among the world’s 40 largest greenhouse gas emitters. The rest of the countries are smaller, poorer nations, with many in Africa or the Caribbean.
Some nations have argued that they cannot put together an NDC – which requires a significant amount of work in tracking emissions and consulting on how to curb them across the economy – because of exceptional circumstances. For example, a letter from a Sudanese official to the PAICC committee, seen by Climate Home News, says that the country’s civil war has led to the suspension of its NDC preparation.
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The US and Iran are not signed up to the Paris Agreement, although the US submitted a 2035 NDC under the Biden administration before Donald Trump pulled the US out of the UN climate accords.
The committee also expressed concern that the UN’s NDC registry continued to label the climate plans of countries that are no longer party to the Paris Agreement as “active”, according to its report. The US submission has since been archived.
Since the last PAICC meeting in March, ten countries have published NDCs. The committee did not name them but they include India, Algeria, Cameroon and Guyana.
The post Quarter of countries still missing UN climate plans 18 months after deadline appeared first on Climate Home News.
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