Climate financing needs overhaul at COP27

Developing country climate financing needs should start being reframed at the COP27 climate summit in November, according to the UN climate champion for Egypt.

With food and energy inflation already being driven by climate concerns and the war in Ukraine, the world needs to deliver more financing to help developing nations for their energy transition and ability to adapt to climate challenges like drought or sea level rise, 

“The finance architecture of climate is inefficient, insufficient and unfair,” Mohieldin said.

He added that the present funding shortfall could be addressed through measures aimed at mobilising private sector finance, reducing debt for poorer nations, and creating tailored carbon markets in Africa.

He added that countries were also working to change the perception that climate-related investment in developing countries was too risky by putting together a pipeline of viable climate projects that could be presented at November’s summit.

Currently 33 projects including 19 from Africa had been identified, he said.

He also said he hoped the ‘loss and damage’ agenda will be discussed at the COP27 summit that Egypt will host in Sharm el-Sheikh in November. 

‘Loss and damage’ is a general term used in UN climate negotiations to refer to the consequences of climate change that go beyond what people can adapt to, or when options exist but a community doesn’t necessarily have the resources to access or utilise them.

In this context, calls have been more for the establishment of a separate fund to compensate developing countries in the event of catastrophe exposures.

“Definitely it needs more than just a quick reference to it, especially since some of the advanced economies are saying, well, it’s there, but let’s deal with it within the adaptation portfolio,” he said.

Visiting Pakistan last week in the wake of devastating floods, UN Secretary General Antonio Guterres urged governments to address loss and damage at COP27 “with the seriousness it deserves”.