At the opening of the UN climate conference in Sharm al-Sheikh (COP27) on Sunday, it was decided to negotiate financial aid for poorer countries as a separate item for the first time. On Monday, UN Secretary-General Antonio Guterres said it was an issue that could no longer be swept under the carpet.
Guterres called for solidarity between the rich industrialized countries and poorer countries – they would finally have to pay for damages. According to the UN Secretary-General, this aid could be financed, among other things, with taxes on profits from fossil fuels. In the meantime, appeals have also come from heads of state and government such as French President Emmanuel Macron, who sees China and the USA as the main challenge here.
Guterres at COP27: “The clock is ticking”
At the world climate conference in Sharm al-Sheikh, UN Secretary-General Antonio Guterres warned in somber terms of the consequences of global warming. “We are fighting the fight of our lives – and we are about to lose,” he warned, referring to the droughts, floods, storms and rising sea levels caused by the climate crisis. The Portuguese called for a “climate solidarity pact” that wealthy countries would now have to conclude with emerging and developing countries.
Debate between Global North and South
Federal President Alexander Van der Bellen expects “tough arguments, ultimately about money issues, but also about morality and responsibility. The industrialized countries are reluctant to accept this responsibility and the global South – and rightly so – never tires of pointing this out.”
Climate justice
The term “Climate Justice” sheds light on how differently regions of the world are affected by the climate crisis. And asks who should be held responsible for the consequences and their alleviation.
In fact, climate justice is a debate that is primarily fought between the Global North and South. Data on global emissions shows that it is primarily countries in the Global North that are responsible for the majority of global CO2 emissions. Depending on the calculation, the top three places in the world’s biggest climate sinners are shared by China, the USA and the EU.
Countries of the Global South contribute only a fraction to the climate crisis, but suffer most from its effects such as floods, rising sea levels, drought and heat. Consequences that become more devastating and at the same time more expensive with every degree.
The “New York Times” (“NYT”) cites Pakistan as an example. The rainfall that would have led to the historic monsoon floods this year has worsened by around 50 percent due to the climate crisis. In its entire industrial history, the country has emitted only as much CO2 into the atmosphere as the United States does in one year.
Who causes the damage has to pay?
According to the demand of the Global South, the industrialized countries should finally pay for the “loss and damage” – and make corresponding compensation payments in accordance with the polluter pays principle.
Last but not least, increasing climate damage would lead to growing indebtedness in poorer countries – and subsequently to more difficult access to the financial markets.
Climate fund required for adaptation and protection
For example, a climate fund is required to support the countries most affected. Because despite decades of UN climate negotiations, there is still no financing mechanism for the payment of damages.
Although the industrialized nations promised poorer countries annual payments of around 100 billion dollars (101.4 billion euros) from 2020, this promise has not been kept to this day. A break that overshadows the negotiations and possible promises.
In addition, the poorer countries are calling for a significant increase in the share of funds for adaptation to climate change in the promised 100 billion dollars. In the future, half of the money will be available for adaptation measures such as the installation of storm and flood warning systems or better irrigation systems due to increasing drought, while the other half will be used for climate protection measures such as the expansion of renewable energies.
Financing “the all-determining issue”
The environmental portal Carbon Brief also states that the existing climate finance is far from sufficient. “To phase out fossil fuels and protect citizens from worsening climate catastrophes, developing countries need trillions rather than billions of dollars.”
The report of the Intergovernmental Panel on Climate Change (IPCC report) is quoted, according to which payments would have to increase four to eightfold in the coming years in order to achieve the 1.5 degree target.
Even if binding commitments are not yet in sight, according to the “Financial Times” (“FT”) it is already clear: “Financing will be the all-determining topic of this climate conference.”