Jakarta – As the 29th Conference of the Parties (COP29) unfolds in Baku from November 11 to 22, 2024, Indonesia has voiced strong demands for a more equitable climate finance system. With developed countries contributing over 80% of historical global emissions, civil society groups stress the urgent need for these nations to fulfil their financial obligations to developing and vulnerable states under the polluters pay principle.
“The delay in mobilising funds jeopardises the welfare of vulnerable groups and distances us from the goal of limiting global temperature rise to 1.5 degrees Celsius,” said Syaharani, Head of Environmental Governance and Climate Justice at ICEL, during a press briefing on Thursday, November 14.
Under the Paris Agreement, developed nations must provide climate funding that is aligned with the principle of Common But Differentiated Responsibilities (CBDR). This year’s conference, dubbed the ‘COP Finance’, seeks to address these issues through the New Collective and Quantified Goal (NCQG) for climate funding. However, early discussions saw resistance from the G-77 bloc, which deemed the initial draft inadequate.
Since the 2009 Copenhagen Accord, a commitment of USD 100 billion annually from developed countries has remained largely unfulfilled. Experts argue this sum is far from sufficient; recent estimates suggest climate finance needs could reach USD 8 trillion annually by 2030.
“Climate finance isn’t just about money but ensuring fairness,” Syaharani emphasised. Currently, 90% of global climate finance is allocated for mitigation despite the projected economic losses from climate change, potentially reaching USD 447 to USD 894 billion annually by 2030.
Eka Melisa from KEMITRAAN highlighted that most proposed climate finance for developing nations comes as concessional loans. “Indonesia must advocate for sustainable financing indicators to avoid exacerbating inequality or increasing national debt,” she said.
Nusantara Fund Director Ode Rakhman underscored the effectiveness of direct funding mechanisms to support Indigenous and local communities. Since January 2024, the Nusantara Fund has allocated USD 950,000 to 157 initiatives, with an additional USD 600,000 set for November.
“Direct climate funding empowers communities to implement sustainable solutions tailored to their unique ecosystems,” said Rakhman. These initiatives strengthen social and economic equity through collective ownership and management of resources.
Civil society leaders called for systemic reforms in global finance architecture to redirect funds from high-emission sectors to greener alternatives, ensuring marginalised groups like smallholder farmers, fishers, and indigenous people benefit from climate action.
As COP29 progresses, Indonesia’s stance reflects a broader demand for a just and inclusive approach to addressing the climate crisis, particularly for those on the front lines of its impacts. (nsh)
Banner photo: Handout/Madani
