Donors were supposed to step up, not step back on climate finance – Climate Home News

Report on Climate Finance Commitments and Implications for Sustainable Development Goals

Introduction

An analysis of current global climate finance trends reveals a significant divergence between established commitments and actual disbursements by donor countries. This shortfall presents a critical threat to the achievement of the Paris Agreement objectives and the broader 2030 Agenda for Sustainable Development. This report details the status of climate finance pledges, the challenges in their implementation, and the direct consequences for several Sustainable Development Goals (SDGs).

Discrepancy Between Pledges and Disbursements

The Baku Finance Goal and Competing Priorities

At COP29, the international community established the Baku Finance Goal, a new collective quantified goal (NCQG) on climate finance. However, recent actions by donor countries contradict the spirit of this agreement.

• The Goal: A target was set to mobilize $300 billion per year by 2035 for climate action in developing nations.
• The Reality: Instead of increasing contributions, developed countries are diverting funds away from climate action. Budgets for official development assistance are being reduced while military expenditures are increasing.
• Impact on SDG 17 (Partnerships for the Goals): This trend represents a failure of global partnership and solidarity, directly undermining Target 17.3, which calls on developed countries to mobilize financial resources to assist developing countries.

Impediments to SDG 13 (Climate Action)

The lack of reliable financial support directly compromises the ability of developing nations to pursue robust climate mitigation and adaptation strategies.

• Nationally Determined Contributions (NDCs): Developing countries’ capacity to enhance their NDCs and contribute to keeping the 1.5°C target viable is contingent on receiving the promised financial and technological support.
• Erosion of Trust: The failure to deliver on past promises breeds distrust within international climate negotiations, hindering progress and cooperation essential for achieving the targets of SDG 13.

Governance and Accountability Deficits

Lack of Enforcement Mechanisms

A fundamental weakness in the current climate governance framework is the absence of a formal mechanism to ensure compliance with financial pledges.

1. There is no international body with the power to enforce commitments made under the UNFCCC.
2. Accountability relies on non-binding norms, political will, and the perceived self-interest of nations in collective action.
3. This institutional gap allows for commitments to be ignored without direct consequence, weakening the foundation of international agreements.

Consequences for SDG 16 (Peace, Justice and Strong Institutions)

The repeated failure to honor international commitments erodes the credibility and effectiveness of global institutions. This breakdown of trust not only affects climate negotiations but also weakens the multilateral system required to address all global challenges, a core principle of SDG 16.

Immediate Financial Milestones and Broader SDG Impacts

The Glasgow Pact Adaptation Finance Target

A critical and immediate test of donor commitment is the adaptation finance pledge made at COP26, which is due in 2025.

• The Pledge: Under the Glasgow Pact, developed countries committed to collectively double their provision of adaptation finance to developing countries from 2019 levels by 2025, equating to at least $40 billion per year.
• Critical Test: Failure to meet this near-term, smaller-scale target signals a low probability of achieving the much larger $300 billion goal by 2035.

Widespread Impact on Sustainable Development

A shortfall in adaptation finance has severe, direct consequences for the most vulnerable populations and jeopardizes progress across multiple SDGs.

• SDG 1 (No Poverty) & SDG 2 (Zero Hunger): Lack of funding for adaptation leaves communities on the frontlines exposed to climate impacts, threatening livelihoods, food security, and progress in poverty eradication.
• SDG 10 (Reduced Inequalities): The burden of climate change falls disproportionately on the world’s poorest. Failing to provide support exacerbates existing inequalities between developed and developing nations.
• SDG 11 (Sustainable Cities and Communities): Financial resources are essential for building resilient infrastructure and helping communities adapt to the physical consequences of climate change.

Conclusion: A Call for Renewed Commitment

The decision by developed countries to renege on climate finance commitments is a shortsighted choice that corrodes the international system. Leadership requires honoring promises, especially in times of fiscal constraint. Fulfilling financial pledges is not merely a matter of funding but is fundamental to maintaining the integrity of the Paris Agreement and ensuring the viability of the entire 2030 Agenda for Sustainable Development. Donor countries must provide a clear signal that their commitments will be met to restore faith in global partnerships and enable collective action on the world’s most pressing challenges.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 13: Climate Action

  This is the central theme of the article. It directly discusses climate finance, emission reduction efforts, adaptation to climate change impacts, and the international agreements (Paris Agreement, Glasgow Pact, Baku Finance Goal) designed to address the climate crisis.

• SDG 17: Partnerships for the Goals

  The article heavily focuses on the financial commitments of developed countries to developing nations, which is a core component of global partnerships. It highlights the breakdown of trust and the failure to deliver on promises, such as the slashing of aid budgets and the diversion of funds, which undermines the spirit of this goal.

• SDG 1: No Poverty

  The article connects the lack of climate finance directly to the most vulnerable populations. It mentions that funds are being diverted from “communities on the frontlines of the climate crisis” and refers to the impact on “the world’s poorest,” linking climate action failures to increased vulnerability and poverty.

• SDG 16: Peace, Justice and Strong Institutions

  The article explicitly points out the weakness of global governance structures regarding climate commitments. The author states, “we currently have no formal power to hold countries to account” and “There is no international enforcement mechanism,” which speaks directly to the need for effective and accountable institutions at the international level.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 13: Climate Action

   • Target 13.a: Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries. The article discusses this by referencing the new “Baku Finance Goal agreed at COP29” which sets a target of “$300 billion a year by 2035,” a direct successor to the original goal.
   • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries. The article specifically mentions the pledge from the “Glasgow Pact” for developed countries to “at least double their collective support to help communities adapt to the consequences of climate change by 2025.”

2. SDG 17: Partnerships for the Goals

   • Target 17.2: Developed countries to implement fully their official development assistance commitments. The article notes that “aid budgets are being slashed,” indicating a failure to meet this target.
   • Target 17.3: Mobilize additional financial resources for developing countries from multiple sources. The new “$300 billion a year by 2035” goal is a clear example of an effort to mobilize such resources.

3. SDG 1: No Poverty

   • Target 1.5: By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events. The call to provide adaptation finance to “communities on the frontlines” and “the world’s poorest” directly aligns with this target.

4. SDG 16: Peace, Justice and Strong Institutions

   • Target 16.8: Broaden and strengthen the participation of developing countries in the institutions of global governance. The article highlights the struggle of “Small island states” who “will fight to get climate finance on the agenda,” pointing to the need for their stronger participation and influence.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several specific quantitative and qualitative indicators:

• Indicator for Target 13.a: The amount of money mobilized for climate finance. The article provides two clear figures:
  • The new “Baku Finance Goal” of $300 billion a year by 2035.
  • The fact that this is a “three-fold increase on the current funding,” which implies a current (and failing) level of around $100 billion.
• Indicator for Target 13.1: The amount of money provided for climate adaptation. The article specifies the Glasgow Pact pledge to provide “at least $40 billion a year” for adaptation by 2025.
• Indicator for SDG 13 (overall): The global temperature target. The article mentions the goal of keeping “the 1.5 degree Celsius target within reach.”
• Indicator for Target 17.2: The volume of Official Development Assistance (ODA). The article implies this indicator by stating that “aid budgets are being slashed.”
• Indicator for Target 16.8: The effectiveness of international agreements. The article provides a qualitative indicator by stating there is “no international enforcement mechanism” for climate promises, indicating a weakness in institutional strength.

4. Summary Table of SDGs, Targets, and Indicators

Source: climatechangenews.com