Praying for COP28 - Finance & Partnership

COP28 - 4 December 2023
Finance & Partnership

Today at COP28 a number of topics are up for discussion, but the main one (we think) is ‘Finance’. We are going to pray for finance within the context of ‘Partnership’ as, inevitably, financing all the adaptations and mitigations requires a range of partnerships between rich and poor nations.

COP28 has called on the relevant stakeholders to close outstanding commitments, i.e. provide the promised money. It is also working on scaling up climate finance, including private financing. “This thematic day at COP28 will focus on four key aspects: scaling up efforts, improving access, and enhancing affordability”. … and strengthening voluntary carbon markets.

Additionally, COP28 will introduce trade as a means for climate-smart, equitable growth, including supply chain decarbonization, transition, and resilience”.

A short prayer

Lord we pray for a sense of solidarity amongst those who manage funds used for mitigating the impact of climate change in the Global South. We all share the one planet, the one global climate. We have all contributed to a problem and can all help mitigate it. We pray that the spirit of partnership will be stronger than the self-serving voices of those of us in the Global North who normally profit from financial transactions

A longer prayer

Creator God, we in the global north are rich beyond measure compared to many of our neighbours in the global south and we experience a comfort and security that we often take for granted. Today we pause to give you thanks for all you have provided for us.

However, we also pause to acknowledge before you that we have not distributed the wealth of your world fairly. We have allowed practices to develop that have imprisoned many in the global south in a cycle of debt and poverty. We also acknowledge that our wealth has been created on the back of practices that have damaged your creation. The impacts of this are experienced daily by so many of our southern neighbours, many of whom have been driven further into poverty because of them.

Today the COP28 discussions focus around finance and how to make our global financial systems work better and more fairly for the poorest in the world and those at most risk from climate disaster. We ask that these discussions will unlock funds that can be accessed easily and without the constraints of additional debt. We also ask that developed countries will acknowledge their role in creating the climate issues we face today and will find the resources needed to lift poorer countries out of poverty and into healthy development, without harming the environment. We pray in particular for the multi-lateral development banks (MDBs) which have a tough but pivotal role to play.

From the Bible

Exodus 22: 25-27

If you lend money to one of my people among you who is needy, do not treat it like a business deal; charge no interest. If you take your neighbour’s cloak as a pledge, return it by sunset, because that cloak is the only covering your neighbour has. What else can they sleep in? When they cry out to me, I will hear, for I am compassionate.

2 Corinthians 9: 8

And God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work.

Issues

The following summary of COP28’s position on climate finance is taken from the message from the President Designate

Finance is a critical enabler of climate action. But to unleash its power, climate finance must be affordable, available, and accessible to developing countries. We know that the current international financial architecture is fragmented and offers insufficient solutions. If we are to achieve the goals of the Paris Agreement, emerging and developing countries need in excess of USD 2.4 trillion of annual investment in climate action by 2030...

The COP28 Presidency is encouraged by the G7 Communiqué and early pledges towards the Green Climate Fund (GCF). We are calling on developed countries to maintain this momentum and urgently make ambitious pledges to replenish the GCF. In addition, we urge developed countries to ensure that the goal of doubling adaptation finance by 2025 is on track, as agreed at COP26, and call on multilateral development banks (MDBs) and development finance institutions (DFIs) to continue putting a stronger emphasis on scaling adaptation finance.

The Presidency continues to encourage developed countries to progress and provide assurances on the delivery of the USD 100 billion, in conjunction with Germany and Canada as coordinators of the Climate Finance Delivery Plan (see below). To provide the basis for ambitious commitments at COP toward closing the gaps between aspiration and implementation.

Multi-lateral Development Banks (MDBs) must release more capital for climate action in developing countries. We urge shareholders of MDBs to endorse the 2022 G20 Capital Adequacy Review recommendations to unlock much needed public finance. MDBs must also take bold steps to use public finance more effectively to catalyse much greater flows of private capital for the net zero transition. We have joined forces with the International Monetary Fund (IMF), Glasgow Financial Alliance for Net Zero (GFANZ), and the World Bank to implement specific actions on private capital mobilization

We need to reform and harmonize regulatory systems, including agreeing on definitions for transition finance and disclosure of climate-related data, and unlock voluntary carbon markets.

The Climate Finance Delivery Plan. A good example of a financial partnership at work - or not working, depending how you look at it, is a pledge of $100 billion, made by wealthy countries in 2009, which we think is being delivered this year. In 2009 rich nations - i.e. members of the Organisation for Economic Cooperation and Development (OECD) - committed to pay $100 billion to a climate fund by 2020. In September this year the OECD confirmed that the money will be forthcoming - only three years late. While this looks like good news the OECD also said the existence of the funds could not be confirmed before 2025! Apparently it takes an extra two years to track all the financial transfers. Saleemul Huq, a Bangladeshi campaigner and adviser to the Cop28 presidency, told Climate Home that “the fact that developed countries still cannot guarantee the delivery of the mythical $100bn… is simply the symptom of their lack of seriousness to deliver on their promises”. And Climate Action Network campaigner Harjeet Singh said even if the target was met it was “too little and too late”, as the “genuine costs faced by developing nations run into trillions annually” (From Climate Change News)

Hope

The climate change fund looks like being delivered this year
The International Monetary Fund established the Resilience and Sustainability Trust in 2022 to provide long term financing and low interest loans to vulnerable countries
The Just Transition Partnerships - aiming to put justice into the transition to green economies in countries of the Global North and Global South
COP27 closed with a late decision to launch the Loss and Damages fund, showing what can be achieved with campaigning, listening and prayer

COP28 discussions

Specific discussion sessions on Day 5 include:

- - Trade solutions for global climate actions
  - IFI (international financial institutions) & MDBs (multilateral development banks) reform
  - Delivering on past commitments
  - Promoting the use of trade
  - Leveraging sustainable finance for trade

COP28 - 4 December 2023Finance & Partnership