Policy Updates

On November190, 2024, Minister for Foreign Affairs Annalena Baerbock traveled to Baku to attend COP29 with Special representative for International climate policy Jennifer Morgan.

Together with other countries, German Chancellor Scholz signed a statement of the country coalition High Ambition Coalition calling for an increase in international climate financing. The coalition demands increased ambition, yet financing models remain unclear.

The German position is weakened through the Traffic Light coalition break-down on November 6, 2024. Moreover, the German government will likely fail to meet its climate goals, including for international climate finance.

On November 18, 2024, both the European Parliament and the EU Council published their priorities ahead of COP29 negotiations, which highlighted focus on climate financing, carbon pricing, and national contributions.

The EU and its Member States also issued a statement reaffirming their commitment to strengthen gender integration in global climate action.

The European Parliament called for a NCQG for financing climate action which is socially fair, aligned with the polluter-pays principle, and includes public, private, and innovative financing. The MEPs want the big emerging economies with high emissions and high GDPs to financially contribute to global climate action. They also called for the EU to step up its green diplomacy, and help other countries develop their carbon pricing mechanisms. The Parliament also called to transition away from fossil fuels by stopping the subsidies and reallocating this funding to climate action.

On October 14, the Council had approved the EU’s general negotiating position for COP29, calling for:

• An ambitious and balanced outcome which keeps the 1.5°C temperature goal, in line with COP28 ambitions and absolute reduction targets in NDCs for all greenhouse gasses;
• Making progress on long-term adaptation and resilience, and urgently scaling up mitigation and implementation of the global stocktake decision; and
• An agreement on an effective, achievable, and ambitious NCQG, which includes various flows of finance and a broader group of contributors.

Commissioner Wopke Hoekstra delivered remarks at the opening session of COP29. He highlighted that the challenge to meet the 1.5°C target is political and the EU will continue to lead the effort. Regarding the negotiations on the NCQG on Climate Finance, Hoesktra said public finance should remain at its core, but that it is important to expand the donor base to include those who contribute to emissions. The funding will be dispersed to those most in need. Finally, more resources beyond public sector funding must contribute to this effort.

On the opening day of COP29, the EU and its Member States were joined by 17 other countries on a joint statement, which reiterated the importance of gender issues in the fight against climate change. It underscored the disproportionate effect it has on women and the need for full and equal participation in decision-making processes. It also called for the adoption of a work program on gender and climate at COP29, in line with earlier commitments.

On November 18, 2024, Norway announced its contribution to the World Bank's IDA for the period 2026-2028 during Norweigan Prime Minister Jonas Gahr Støre's attendance at the G20 meeting in Rio de Janeiro.

The Norwegian pledge represents an increase of 50% compared to previous replenishment periods. Norway committed NOK5 billion (US$454 million) in this round, which is an increase from NOK3.4 billion (US$303 million) in the previous round.

According to Støre, the Norwegian funding will be used to help provide people with food and access to electricity, as well as to implement measures to address climate change.

Norweigan Minister of International Development Anne Beathe Tvinnereim says that the IDA is one of Norway's most powerful tools in the fight against poverty. She declared that increased support to the IDA is a means of translating the Africa strategy launched in August, 2024, into action by enabling Norway to promote efforts to increase food security and enhance climate-resilient agriculture, areas in which the IDA plays a key role.

A total of NOK600 million (US$54 million) of Norway’s contribution will also be set aside to be used over three years to promote food security.

On 18 November 2024, EC President Ursula von der Leyen delivered a speech at Session I: Social Inclusion and the Fight against Hunger and Poverty at the G20 in Rio de Janeiro.

During her speech at the 1^st Session of the G20 Leaders' Meeting, the president painted a grim picture of the world where climate change, disasters, and conflict are a daily reality. However, she reiterated that the EU is committed to fight poverty, hunger, and social exclusion domestically and internationally. She underlined that globally the EU is the largest provider of ODA, and committed EUR15 billion (US$16 billion) to fight poverty and hunger over the past few 3 years. She also noted that the EU continues to invest in infrastructure and creating jobs through Global Gateway.

On November 17, 2024, during Global Citizen NOW: Rio de Janeiro, von der Leyen and South African President Cyril Ramaphosa launched the global campaign Scaling up Renewables in Africa, together with Global Citizen, and the IEA a policy partner. The one-year long campaign will drive new commitments on policy and finance to mobilize investments from governments, the private sector, and MDBs into renewables in Africa. While Africa holds 60% of the world's best solar resources, the continent attracts only 3% of global energy investment.

Von der Leyen will also invite global leaders to join forces in a new Global Energy Transition Forum, which will bring together governments, international organizations, and financial actors to amplify the implementation of the targets set in COP28 of tripling renewable energy and doubling energy efficiency worldwide.

On November 16, 2024, the Australian government announced a partnership with Pacific nations to scale up energy grid transition, and improve energy security with a AUD125 million (US$82 million) investment in renewable energy at COP29..

Australia announced an AUD75 million (US$50 million) investment through the REnew Pacific program to help deliver community scale renewable energy and off-grid power to rural and remote areas in the Pacific.

A further AUD50 million (US$32 million) was pledged through the APPET in order to provide technical assistance which included feasibility studies, energy modelling, and grid studies.

Funding for APPET was being made available by repurposing funds previously allocated to the IPCOS by the former Australian Government.

On November 15, 2024, Australian Minister for International Development and the Pacific Pat Conroy announced that Australia would fund a new climate program to combine ODA with private capital to accelerate climate action at COP29.

Conroy noted that this would boost climate-focused efforts by businesses in South Asia, Southeast Asia, and the Pacific.

The AUD126 million (US$83 million) package would assist de-risking climate solutions to attract investors from the private sector.

Equity, loans, and guarantees would be used, and funds recovered will be reinvested. The package would also provide technical assistance in project analysis and impact measurement.

On November 15, 2024, Canada announced nearly CAD13 million (US$9 million) for the Building Climate Resilience from Indigenous Perspectives project, which aims to support climate resilience and Indigenous-led climate action projects in Bolivia, Colombia, Guatemala, and Peru in partnership with First Nations, Inuit and Métis peoples in Canada.

The project is a partnership between the BCAFN and Save the Children Canada, the ONAMIAP, and the ECMIA Sur.

The funding will help advance nature-based solutions for climate change adaptation by strengthening climate governance in Indigenous communities and creating space for knowledge sharing.

On November 15, 2024, Norway announced a contribution of NOK50 million (US$5 million) to support ARC, a program under the AU that helps countries respond effectively to climate-related crises such as droughts, floods, cyclones, and epidemics.

This initiative combines advanced weather forecasting, early warning systems, and innovative insurance solutions to enable quicker and more predictable disaster responses.

The funds, along with contributions from the US and the Netherlands, will allow African nations to purchase climate disaster insurance. These payouts ensure timely assistance to affected communities, enhancing their ability to cope with disasters. Norway's support will help ARC expand its reach to assist an additional 13.4 million people from 2024–2028.

This contribution is part of Norway’s broader commitment to building economic and climate resilience in LICs.

On November 14, 2024, USAID announced a series of investments totaling US$54 million with the private sector to mobilize climate finance at COP29.

Building on previous successes which mobilized US$30 billion for climate finance to address development since 2021, USAID announced US$9 million for USAID's EDGE Fund, all for different investments in climate funds.

USAID will also invest US$28 million for the Columbia Invest for Climate activity and an additional US$6 million to the Partnership for Green Investments in Southeast Asia.

On November 13, 2024, UK Foreign Secretary David Lammy announced greater support for countries at the forefront of the climate emergency, and emphasized the need for new partnerships to help tackle illegal deforestation and support indigenous people.

At COP29, he committed to a new initiative supporting forest tenure rights for indigenous and local communities across the Amazon Basin. GBP9 million has also been made available to local scientists working to protect the Congo Basin, home to the world’s largest tropical peatlands to help protect vital natural CO2 storage areas.

GBP100 million of funding will be given for BII's new Mobilisation Facility, which will drive up to GBP500 million (US$647 million) of private capital into investments that support other countries in their transition towards net zero.

Lammy also announced a guarantee of US$280 million to the new IFCAP initiative, which the UK is a founding partner together with the ADB, and other financing partners. The UK’s guarantee contribution will unlock US$1.2 billion of additional climate finance, at no upfront cost to the UK.

The UK's commitment to spend GBP11.6 billion (US$15 billion) of climate finance from 2021/2022 to 2025/2026 will continue to be honored. This includes at least GBP3 billion (US$3.8 billion) on nature, from which GBP1.5 billion (US$1.9 billion) will be dedicated to protecting and restoring forests.

Lammy underscored the UK’s commitment to halting and reversing deforestation, to protect areas which play a key role in absorbing CO2 emissions. This includes announcing partnerships aimed at improving forest management and a new 10-year investment to reduce illegal logging. The program will build on long-running UK initiatives to improve the governance of forests, support the trade of sustainable forest products, and crackdown on illegal ones.