New Delhi: A group of influential countries has urged the G20 nations to increase the overall pool of financing for climate action and urgently shift away from investments in fossil fuels.
In a letter to the G20 bloc, the High Ambition Coalition (HAC) said all countries must work together to mobilise as much funding as possible to tackle the climate crisis as they convene to set a New Collective Quantified Goal (NCQG) on climate finance at COP29 in Baku, Azerbaijan.
The NCQG is the new amount that developed nations must mobilise annually, starting in 2025, to support climate action in developing countries.
However, slow progress in mid-year UN talks in Bonn, Germany, and technical discussions in Baku has cast doubt on the possibility of setting an ambitious new climate finance target at the conference.
The HAC emphasised that G20 countries, responsible for around 80 per cent of global emissions and holding 85 per cent of global GDP, had the power, resources and responsibility to "change the course of our planet's future".
"We urge the G20 to lead all parties in collectively increasing the overall pool of financing for climate action from all sources and to urgently shift away from investments in fossil fuels," the coalition said.
"As the costs of climate change rise and we work together to set a New Collective Quantified Goal on climate finance (NCQG), we must deliver as much funding as possible to tackle the climate crisis. We must approach COP29 in a spirit of collaboration," it added.
The HAC said trillions of dollars were needed annually to meet the evolving needs of developing countries, as well as a redesigned international finance system that addressed long-standing inequities and mobilised resources for climate action on a much larger scale.
According to a report released by the United Nations Framework Convention on Climate Change (UNFCCC) on September 10, between USD 5.012 trillion and USD 6.852 trillion would be needed cumulatively until 2030 to support developing nations in achieving their nationally determined contributions (NDCs), which are national plans to meet the goals of the Paris Agreement.
Earlier this year, India said that in line with the needs of developing countries, developed nations needed to provide at least USD 1 trillion per year, primarily in the form of grants and concessional finance.
Developing countries argue that loans and private finance at market rates cannot be considered climate finance as they increase their debt burden.
The HAC said debt constraints and the high cost of capital hindered many countries' ability to achieve their climate and development goals.
"We must address unsustainable debt burdens, align all financial flows with the Paris Agreement, and advance the commitment to equity at the heart of the agreement," it said.
The coalition said finance was crucial for a truly global energy transition that left no one behind.
G20 members can support this by increasing public finance investment in the transition, closing loopholes in international fossil fuel investment commitments, and repurposing investment for renewables and energy efficiency, it added.
They said ambition must be rewarded, not punished, through increased financial support and investment.
"Finance is key to delivery. NDCs can showcase commitments and plans to potential investors but many ambitious NDCs have so far gone unfunded. Capacity building and technology transfer should not be overlooked; these means of implementation are essential to achieving the goals of many NDCs," the HAC said.
The HAC is an influential but informal group of countries committed to advancing progressive climate and environmental goals.
Countries in the coalition include Antigua and Barbuda, Barbados, Chile, Colombia, Finland, Fiji, France, Germany, Ireland, Luxembourg, the Netherlands, New Zealand, Norway, Spain, Sweden, and the UK, among others.