COP28: UAE pledges USD 270 billion in loans, activists say insufficient

Jakarta – Climate funding took centre stage at the UNFCCC COP28 in Dubai, especially regarding the gap in climate finance needs and existing offers, as Reuters news agency reported.

The host United Arab Emirates (UAE) pledged to provide USD 270 billion in green finance by 2030 through its banks, with some development banks even agreeing to suspend debt repayments in the event of a disaster.

However, large economies such as Saudi Arabia, previously active in COP27, were less involved at this UN Summit. Saudi Energy Minister Prince Abdulaziz bin Salman and Crown Prince Mohammad bin Salman did not attend the Saudi Green Initiative Forum one day earlier.

World leaders recognise the enormous funds needed for energy transition, climate adaptation, and disaster relief. A report estimates that developing and developed countries need USD 2.4 trillion per year in investment to address the challenges of climate change.

Nicholas Stern, Chair of the Grantham Research Institute on Climate Change and the Environment, said the world is not on track to realise the goals of the Paris Agreement. He said, “The main thing is to accelerate and execute on fostering and financing these investments from multiple sources.”

Barbados Prime Minister Mia Mottley emphasised the need for global governance and suggested the introduction of a tax as a way to boost climate finance. She said that the planet needs global governance and the ability to cooperate and work with the institutions we have.

Although the newly established disaster funding pledge is currently only around USD 700 million, vulnerable countries already hit by disasters ask for billions of dollars in assistance. The Asian Peoples’ Movement on Debt and Development (APMDD) expressed concern that the current funding pledges are insufficient.

“The climate finance they have pledged at COP28 is not enough,” said Pakistani activist Zaigham Abbas, whose country was devastated last year by widespread flooding.

“We are not looking for charity here. We are not looking for help. The scale of the disaster we face is unprecedented,” he added.

In contrast, the UAE banking system pledged to lend more to environmentally friendly projects. Meanwhile, countries like France and Japan supported initiatives using IMF Special Drawing Rights for climate and development.

In this context, COP28 President Sultan Ahmed Al Jaber emphasised the role of finance in realising the ambition to act on the climate crisis, with several companies and financial institutions also committing to support sustainable projects. (Hartatik)

Banner photo: @UN COP28 UAE

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