Climate finance for reducing emissions

The current climate situation shows the pathway of at least 2.7 degree Celsius heating above pre industrial levels, and that’s obviously a one way ticket to disaster. The carbon pollution of a handful of countries has brought humanity to its knees and they bear the greatest responsibility. The G20 leaders will meet in Rome and they know their economies are responsible for four-fifth of the planet’s carbon pollution. If they do not stand up we are headed for terrible human sufferings. I hope we are still on time to avoid a failure in Glasgow, but time is running short, and things are getting more difficult and that is why we are very worried. I’m afraid things might get wrong.’’ The UN Secretary General Antonio Guterres raised the concern judiciously while irrational corporates are still emitting recklessly, ultimate victims are the people, key driver of civilization in the planet.

Sixth IPCC report in August 2021 provides compelling evidence of increasing trends in extreme weather, ocean warming, slow-onset events, and other climatic disruptions, exacerbating displacement risks faced by vulnerable populations who lack the means to adapt and prepare for these changes. Rapid abruption of the weather has triggered the loss and damages of already vulnerable people. A World Bank study in 2021 identified that in absence of the concrete climate and development actions climate change could lead more than 216 million people of the planet to migrate or internally displaced by 2050; and one-fifth (40 million) would be from South Asia. Bangladesh drives or 37 per cent of the region’s projected climate migrants, with a projected 13.3 million climate migrants in the pessimistic reference scenario. Indeed, in Bangladesh, climate migration could outpace other internal migrations by 2050.

Internal Displaced Monitoring Center (IDMC) claimed that “nearly 1,900 disasters triggered 24.9 million new displacements across 140 countries and territories in 2019; and this is the highest numbers has been reported since 2012, three times the number of displacements caused by conflict and violence. Bangladesh, China, India and the Philippines together recorded more than 4 million disaster displacements. Much of the new displacement reported in 2019 took place in the form of pre-emptive evacuations.

Cyclones Fani and Bulbul triggered more than five million in India and Bangladesh alone. Evacuations clearly save lives, but many evacuees had their displacement prolonged because their homes had been damaged or destroyed.” Here too, sustained development gains and lessening climate change impacts on highly densely populated vulnerable areas will be crucial. Fate of the climate victims is still uncertain as the UNHCR and IMO have opined that ‘Climate Refugees’ or ‘Environmental Refugees’ have no legal basis in international refugee law and should be avoided in order not to undermine the international legal regime for the protection of refugees.

The number of forced climate-induced displacement could be reduced by as much as 80 percent if take action on to cut global GHG emission, robust and meaningful plan for each phase of migration (before, during and after) as preventive measure towards resilience, integrate climate migration into far-sighted green, resilient and inclusive development planning; and invest in understanding the drivers of climate migration through evidence-based research, models, and consultations, to inform policy responses.

Earlier the Executive Committee of the Warsaw International Mechanism for Loss and Damage stressed for integrated approaches to averting, minimizing and addressing displacement related to the adverse impacts of climate change.

To implement the Task Force on Displacement’s (TFD) existing recommendations and express continued support for the Task Force on Displacement. Considering the grave concern about the fate of climate induced displacement in CoP26 the LDCs or/and CVF shall place united and strong demand for formulating laws, policies and strategies, as appropriate, that reflect the importance of integrated approaches to avert, minimize and address displacement related to the adverse impacts of climate change and in the broader context of human mobility, taking into consideration their respective human rights obligations and, as appropriate, other relevant international standards and legal considerations. Ensure that eligibility requirements for adaptation, as well as loss and damage projects, include and streamline relevant human mobility measures, such as resilience building for displaced populations and vulnerable migrants, facilitating community-led planned relocation, access to pathways for admission and stay in cases of cross-border mobility, and assistance and durable solutions for displaced persons.

Immense humanitarian crises especially poverty has been increasing abruptly in both climate and Covid-19 affected vulnerable countries.

Situation has demanded to go beyond the business as usual, but the leaders and corporates are still moving with the existing economic and political system. There is no option to “facilitate orderly, safe, regular and responsible migration and mobility of people, in the context of climate change, considering the needs of migrants and displaced persons, communities of origin, transit and destination, and by enhancing opportunities for regular migration pathways, including through labour mobility, consistent with international labour standards, as appropriate”.

Moreover, CoP26 should declare roadmap on the grant-based climate finance to address loss and damages, building resilience and capacity buildings of the affected households, communities and local actors.

To mobilise the required amounts, G20 countries responsible for almost 80 per cent of global carbon emission must withdraw the public subsidy to fossil fuels and divert that amounts as grants to address loss and damages to countries most vulnerable to climate change. Bangladesh should engage with LDCs and EU, USA to phase out $130 billion annual subsidy to fossil fuels and divert that funds for climate actions in vulnerable countries. At least 50 per cent of the committed funds should be delivered directly to affected communities through using innovative funding mechanism. Provide a guideline to the Green Climate Fund for adopting immediate measures to avert, minimize and address loss and damage, and the extent to which they address displacement and other forms of human mobility.

Engage as well as to provide developing countries, as well as national, local, and civil society organizations, with guidance on how to access sustainable, adequate, and predictable financing to comprehensively integrate climate change-related human mobility considerations in wider climate change responses. Developed countries have given one after another commitment in Copenhagen, Paris and Madrid to mobilize 100 USD billion per year, starting in 2020 and extending beyond 2025, ensuring balance between mitigation and adaptation. However, these commitments have not yet translated into reality. Though there is a question about proper measurement of climate finance considering “Rio marker’ “New and additional to ODA’, however, an estimate tells the bleak picture, as of 2021, adaptation received only 21 percent of climate financing. India, Indonesia, China and Vietnam have together received 56 per cent of the funding approved for Asia since 2003; and mitigation finance accounts for 62 per cent of finance from the multilateral funds in the region (USD 3 billion), while adaptation projects and programs in the region receive only about a third or USD 1 billion of mitigation financing amounts, following figure regarding top 10 recipient countries by amounts approved from 2003-2019.

CoP26 shall provide clear, time-bound and meaningful grant-based (at least 50 per cent) climate finance for both climate adaptation and resilience for developing countries for the period of 2022-2024. As the disasters are intensifying adaptation costs will rise to USD140-300 billion annually in LDCs by 2030. Up to 2030 adaptation funds are estimated of around $280 billion for Bangladesh, India, Sri Lanka, and Maldives, but received only US$5.9 billion of AF in LDCs during five-year period (2014-2018). Carbon market or carbon financing mechanism with other V20 mechanisms – potential to raise between USD1.37 billion and USD 4.5 billion.

All funding for LDCs should access to humanitarian and development funding outside the UNFCCC process for efforts to address human mobility associated with the adverse impacts of climate change, such as through multilateral funds, the Migration Multi-Partner Trust Fund, social protection safety nets, and anticipatory financing mechanisms. As Chair of CVF Bangladesh should lead to V20-led Accelerated Financing Mechanism including financial tools including access to market-based instruments such as bonds (blue, green, resilience) to reduce carbon emission. In collaboration with the CVF and LDCs Bangladesh will lead to form a Climate Actions Fund for Asia and Pacific (CAFAP) with the funds from GCF, AF, MDBs, Philanthropic and under which a meaningful and time-bound strategy and actions would be derived. Direct resources (e.g. funding, capacity building etc.) supports to Community-led Resilience (CLR) against all man-made and natural disasters will be more effective. The victims are tired to hear the Lucy words and nice speeches, unmet numerous pledges, but the leaders should be forward looking and leave the myopic behavior. If they really fails to deliver the expectations they might have to face big, massive pressure from the victims.

The writer is a climate finance and sustainability analyst currently serving as Executive Director of Change Initiative.