COP29 climate finance goals must be in trillions of euros rather than billions, says ActionAid Ireland

New climate finance goals to be agreed at COP29 by world leaders next week must be set in trillions of euros every year, rather than billions, with a clear obligation on rich, high-polluting countries to provide this money, according to ActionAid Ireland.

In its asks of Ireland and global leaders attending the COP29 climate gathering in Azerbaijan, ActionAid Ireland says the climate finance goals – known as the New Collective Quantified Goal (NCQG) – must be ambitious enough to allow climate vulnerable countries in the Global South respond to climate impacts, to transition to a sustainable future, and to take action to avert runaway climate breakdown.  

ActionAid Ireland stressed that Ireland must also play a leading role in climate justice and deliver on our international climate finance obligations, estimated to be at least €500m per year. Ireland needs to increase this amount in line with our fair share of the new post- COP29 global climate finance goal.

In its COP29 statement, which sets out four key actions needed to achieve climate justice and women’s rights, ActionAid Ireland says the climate finance target must include specific sub-goals for loss and damage, adaptation and mitigation.  Ireland’s contributions to the Fund for Responding to Loss and Damage should also be stepped up through new and innovative sources of finance, and a pathway developed to deliver Ireland’s fair share of Loss and Damage finance of at least an estimated €1.5 billion per year by 2030.

ActionAid Ireland CEO, Karol Balfe, said: “Globally we have experienced a year marked by extreme climate crises, reinforcing the urgency for action at COP 29.  Although crises have been felt everywhere, for example most recently the devasting floods in Spain, people in the Global South, and particularly women, continue to suffer the worst effects of climate chaos with more frequent extreme weather events. This compounds poverty and inequality, undermines attempts to alleviate hunger, exacerbates conflict and erodes women’s rights and genders equality.”

Ms Balfe added: “It is estimated that 75% of the costs of the global crisis are borne by countries of the Global South, despite the poorest half of the world’s population causing just 10% of carbon dioxide emissions. The need for decisive climate action at COP29 in Azerbaijan is urgent and Ireland has a crucial role to play.”

In relation to Ireland’s role, Ms Balfe said: “Ireland needs to be seen as a leader for climate justice and the reality is we can do more. For example, Ireland must address the fact that billions flow through our foreign direct investment to climate harming activities in the Global South. The role of private finance flows have to be addressed.” 

“Additionally, our pledge at the last COP of €25m for loss & damage falls well below our estimated fair share of the global effort needed, with recent analysis by Christian Aid and Trócaire estimating this pledge should be at least €1.5 billion per year by 2030.  Ireland should use COP29 to set the pace for bold climate leadership, going beyond standard commitments to define a new benchmark for meaningful climate action.” said Ms Balfe.

ActionAid Ireland has set out four major asks of Cop29:

1. Step up finance commitments. Global South countries on the front lines of the climate crisis are already bearing the massive costs of climate change. This pushes them deeper into debt. In spite of the Paris Agreement’s $100bn climate finance target, developed countries which have been industrializing and burning fossil fuels for more than a century provided only $28-35bn in grant-based finance in 2022. The bulk of climate finance mobilized so far has been in the form of loans which worsen the climate crisis.
2. Advance global goals on adaption. As the climate crisis accelerates, there continues to be a major gap in focus and financing to support frontline countries to adapt to escalating climate impacts. Adaptation must be elevated at COP29, and the narrative shifted to spotlight the urgency of action and finance. The Irish Government should push for adaption indicators to include finance, gender, agroecology and human rights.
3. Deliver for women’s rights as a key part of climate justice. Irish government policies on gender equality must be translated into gender transformative climate policies. Ireland must use COP29 to push this agenda. According to UN Women, women are 14 times more likely to die from climate disasters as men. The greater the gender and economic inequality, the greater the disparity between men and women’s chances of survival. 80% of people displaced by climate disasters are women.
4. Ensure money is going to the right places and deliver economic reform. At COP29 there needs to be collective recognition on the link between debt crises and the climate crises. There must be a  just transition away from fossil fuels. As the climate crisis alarmingly escalates, fossil fuels and industrial agriculture – the two industries that are the largest contributors to climate change – continue to expand and thrive. The world must shift to renewables fast and there must be debt cancellation for Global South countries crippled with debt.