COP27 | Leaders push for climate action, fossil tax at UN talks


Delegates at the climate summit in Egypt are expected to focus on financing issues on November 9, 2022.

Delegates at the climate summit in Egypt are expected to focus on financing issues on November 9, 2022.

World leaders are making the case for tougher action to tackle global warming on November 8, 2022, as this year’s international climate talks in Egypt heard growing calls for fossil fuel companies to help pay for the damage they have helped cause to the planet.

United Nations chief Antonio Guterres warned on November 7, 2022 that humanity was on “a highway to climate hell with our foot on the accelerator,” urging countries to “cooperate or perish.” He and leaders such as Barbados Prime Minister Mia Mottley said it was time to make fossil fuel companies contribute to funds which would provide vulnerable countries with financial aid for the climate-related losses they are suffering.

The idea of ​​a windfall tax on carbon profits has gained traction in recent months amid sky-high earnings for oil and gas majors even as consumers struggle to pay the cost of heating their homes and filling their cars.

The US mid-term elections were hanging over the talks on November 8, 2022, with many environmental campaigners worried that defeat for the Democrats could make it harder for President Joe Biden to pursue his ambitious climate agenda.

Developing countries need $1 trillion a year in climate finance

Developing countries need to work with investors, rich countries and development banks to secure $1 trillion a year in external financing for climate action by the end of the decade and to match that with their own funds, a report said.

The report, released ahead of talks on climate change finance at the COP27 summit in Egypt, said the funding was required to cut emissions, boost resilience, deal with damage from climate change and restore nature and land.

“The world needs a breakthrough and a new roadmap on climate finance that can mobilize the $1 trillion in external finance that will be needed by 2030 for emerging markets and developing countries other than China,” said the report, commissioned by the current and previous climate summit hosts, Egypt and Britain.

It said the total annual investment requirement of developing countries would hit $2.4 trillion by 2030, with half coming from external financing and the rest from public and private sources in those countries.

Current investment stands at around $500 million, it said.

The biggest increase should come from the private sector, both domestic and foreign, while annual flows from development banks should be tripled, it said. Concessional loans, which offer more favorable terms than markets, should also be stepped up.

“Unlocking substantial climate finance is the key to solving today’s development challenges,” said Vera Songwe, one of the report’s authors.

“This means countries must have access to affordable, sustainable low-cost financing from the multilateral development banks to help crowd in investments from the private sector and philanthropy.”

Delegates at the climate summit in Egypt are expected to focus on financing issues on Wednesday.

The report also calls for grants and low-interest loans from the governments of developed countries to double from $30 billion annually today to $60 billion by 2025.



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