Diplomatic tensions over climate change spilled into the G20 summit negotiations in Rio de Janeiro this week, with major economies managing to reach a fragile agreement on climate finance something that had proven elusive during the UN talks in Azerbaijan. As world leaders gathered on Sunday, they prepared to tackle a wide range of issues, from global poverty to institutional reform. However, the focus remained on how to address the ongoing climate crisis.
While the COP29 summit in Baku, Azerbaijan, has been charged with securing a goal for climate finance, the G20 economies hold the financial power needed to mobilize billions of dollars for climate efforts. G20 countries, which represent 85% of the global economy, are also the largest contributors to multilateral development banks, which fund climate finance initiatives.
UN Secretary-General António Guterres emphasized the G20’s responsibility, noting that these nations contribute to 80% of global emissions. He urged G20 leaders to show leadership by example in combating climate change and improving the state of COP29 negotiations. Similarly, UN climate chief Simon Stiell sent a letter to G20 leaders, urging them to bolster financial support for developing countries and reform the multilateral development banks.
The ongoing negotiations at the G20 summit mirrored the contentious debates that have dominated COP29. One key issue is how much financing should be directed toward developing nations. Experts have recommended a target of at least $1 trillion. Wealthy countries, particularly in Europe, argue that this goal can only be achieved if richer developing nations such as China and Middle Eastern oil producers also contribute.
However, countries like Brazil resisted calls for mandatory contributions, advocating instead for voluntary donations from developing nations. After intense discussions, negotiators reached a compromise, agreeing on language that mentions voluntary contributions without making them mandatory.
Despite the progress in Rio, the G20’s achievements are overshadowed by the political uncertainty surrounding the United States’ commitment to climate action. President-elect Donald Trump is expected to withdraw the US from the Paris climate agreement once again, which could significantly undermine global efforts to raise climate finance.
Trump’s decision to roll back climate policies introduced by outgoing President Joe Biden has raised concerns about the future of climate funding. Biden, who visited the Amazon rainforest on his way to the summit, had highlighted his administration’s commitment to tackling climate change, but his successor’s stance could derail these efforts.
The outcome of COP29 and the upcoming COP30 summit, set to be held in Brazil next year, is crucial to achieving global climate goals. Brazil’s strategy for COP30 focuses on “Mission 1.5,” a push to limit global warming to 1.5°C in line with the Paris Agreement. However, the UN estimates that current national targets would lead to a rise of at least 2.6°C.
Developing countries argue that they can only enhance their emissions reduction targets if wealthy nations take responsibility for financing the necessary efforts. Bahamas Prime Minister Philip Davis stated that limiting warming to 1.5°C is technically possible, but only with a significant, G20-led effort to reduce greenhouse gas emissions worldwide.
