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The difficult economic period of COP26 on the economic climate in developing countries

The expenditure on rich countries in developing countries to support climate change proves to be crucial at the COP26 summit.

Money has been a hot topic since the start of the two-week negotiations, with rich countries admitting to missing out on a $ 100bn annual promise made a decade ago.

At the end of the summit, a series of “cover” notes will summarize the international agreement reached on the summit. Analysts say climate change decisions are the most controversial.

A growing group of developing countries say they need to see financial transparency by the end of COP26, in order to agree on greenhouse gas emissions.

COP26 president Alok Sharma said he had summoned the cabinet at the end of Thursday evening to try to form a coalition. He said: “There is much work to be done. “Economic negotiations need to be accelerated, and they need to be accelerated now.”

The revised version, which is expected to last all night, was delayed until Friday, among other things due to disputes and disagreements over the language of exchange rates and damage and damage.

India alone has stated that it wants $ 1tn in global currency, as part of its commitment to reduce greenhouse gas emissions by 2070. A large number indicate the growing tensions between the various financial institutions.

At a press conference between Glasgow, delegates from climate-sensitive countries and Greenpeace criticized the US and the EU for curbing the ambitions and for refusing to raise enough money to help developing countries deal with climate change.

“Financial issues have always been very difficult to do,” said Alden Meyer, chief consultant at E3G. “We are at risk of a collapse, when the US and Europe and other developed countries reduce their economic potential, and Saudi Arabia, China, and others limit what they can to reduce it.”

While some countries were concerned that there might not be enough detail or requirements in the written word, others were not willing to volunteer to provide more.

The US has been under a lot of pressure, as negotiators and human rights activists have said they did not make enough donations even though they had adjusted their contributions before the meeting to $ 11.4bn. President Joe Biden’s promise to deliver by 2024 was also very far in the future, he said.

“The Biden government is in trouble, they can’t just hold their fingers and earn money,” said one spokesman. “But the reality is that they are making up a quarter of their seasonal income.”

Major economies, including the US, have been opposed to the idea of ​​a new fund that could provide compensation for losses and damage related to climate change.

They are also opposed to the legitimate tax on carbon debt that is sold between countries that can go to a fund for poor countries, instead of making voluntary contributions to such a fund sufficient.

“It is very important for us to have a place of waste and destruction,” said Emmanuel Tachie-Obeng, an employee at the Ghana Conservation Agency. “Look at the catastrophic effects of climate change. All our farms are being demolished, our schools are being demolished. Who is responsible for this devastation? ”

One of the tasks of the negotiators in Glasgow is to approve the process of setting a new climate target for 2025 and beyond, even though the previous goal has not been achieved.

Up to $ 100bn annual target was set for 2020, and is now pushing towards the end of 2022.

“We can never find ourselves in a place where we are overreacting, overreacting” to the economic climate and failing to keep our word, said one official.

Developing countries are also pushing for transparency in the “economy” of the economy, and they want more affluent countries to explain more about the type of currency they are offering.

“We know the commitment of $ 100bn will not be realized before 2023,” said Fekadu Beyene, Ethiopia’s environment commissioner. “This disparity in funding and failure to deliver on our promises must be honestly acknowledged in the statement – and then it must be resolved.”

Climate Capital

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