ISLAMABAD: Prime Minister Shehbaz Sharif said on Tuesday developing countries would need an estimated $6.8 trillion by 2030 to implement less than half of their current nationally determined contributions (NDCs), or national action plans for reducing emissions and adapting to climate impacts defined by the Paris Agreement.
Nearly 200 nations have gathered in Baku, Azerbaijan, for COP29 climate talks this week to thrash out the details of a deal known as the New Collective Quantified Goal, designed to deliver billions of dollars of climate finance to the regions that need it the most. But the United States, Europe and others say they will only commit to the fund if the list of countries contributing to it is widened to include the likes of China, South Korea and Singapore, and the resulting deadlock could block progress during the talks.
Meanwhile, COP29 follows a year of weather disasters that have emboldened developing countries in their demands for climate cash.
Pakistan is ranked the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. In 2022, devastating floods killed over 1,700 people and affected over 33 million, with economic losses exceeding $30 billion. International donors pledged over $9 billion last January to aid Pakistan’s flood recovery but officials say little of the promised funds have been received so far.
“Developing countries will need an estimated $6.8 trillion by 2030 to implement less than half their current NDCs,” Sharif said in an address on the sidelines of the World Leaders’ Climate Action Summit.
“Donor countries should fulfill their commitment to provide 0.7 percent of their gross national income [as development assistance] and capitalize existing climate funds.”
One such commitment, the $100 billion Annual Climate Finance pledge established over a decade ago at COP15, is now reported by the Organization for Economic Co-operation and Development to have reached only $160 billion, Sharif said.
“Despite this number remaining a tiny proportion of the defined need, a significant part of this financing is dispersed in the form of loans, further enhancing the debt burden on developing nations and potentially pushing them toward mounting debt traps, I call them death traps,” Sharif added.
“Pakistan alongside many other developing countries calls for stronger, more equitable climate finance mechanisms. Debt cannot become the acceptable new normal in climate financing which is why we must resume focus on non-debt financing solutions, enabling countries to fund climate initiatives.”
Sharif also called on the United Nations Framework Convention on Climate Change to set up a committee to review NDCs “periodically.”
“We need to double adaptation financing from present level and loss and damage funds must be enhanced and directed toward resilient infrastructure and other pressing needs,” Sharif added.
Governments last year pledged $800 million toward a new ‘loss and damage’ fund to help poorer nations being hit by climate-fueled disasters. The fund, which has a director and a host nation, will now be deciding how the funds should be dispersed and calling for more contributions at COP29.
On Tuesday, the world’s top multilateral banks, including the World Bank, European Investment Bank and Asian Development Bank, pledged to ramp up climate finance to low and middle income countries to $120 billion a year by 2030 as part of efforts at COP29 to agree to an ambitious annual target.
Reaffirming a goal of capping global warming at 1.5 degrees Celsius above the pre-industrial average by 2050, the new figure is a more than 60 percent increase on what the group of 10 multilateral development banks (MDBs) had funneled to poorer nations last year, according to a statement released during the UN climate summit.
The new figure includes $42 billion to help adapt to the impacts of extreme weather, a 70 percent increase over the 2023 number.
