Is the Baku Agreement a good deal to reduce climate damage in the Global South? 5 keys to understand how it has been achieved (and why it has not gone further)

AdminNovember 24, 2024

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Is the Baku Agreement a good deal to reduce climate damage in the Global South? 5 keys to understand how it has been achieved (and why it has not gone further)

Expectations from Azerbaijan climate summit were highwhich is from the beginning Promised to put on the table the biggest figure till date To address the climate crisis in the global south. How to achieve this, how much money to actually raise, is under debate For cause, in what way and, above all, who should foot the bill for climate chaos in the planet’s most vulnerable regions has been the subject of a heated and tense debate in Baku and finally, against all odds, when many thought all was lost, last sunday morning it was closed An agreement was reached after a day of exhausting negotiations,

These are keys to understanding what was agreed at the Baku Climate Summit, why it is important and why it did not move forward.

The figure: 1.3 trillion by 2035, of which 300,000 will come from the pockets of developed countries

The figure that has finally been put on the table contains a double appeal: on the one hand, it asks “All public and private actors” from around the world. to move forward, willingly, moving forward Raise at least $1.3 trillion (with a B) per year For 2035 and on the other hand, it has been clarified that Developed countries (the richest and most polluting on Earth) must do so Contribute at least $300,000 million from your own pocket For reason. This figure shows triple what has been raised so far But, nevertheless, this is still well below the requests initiated by countries of the Global South, which ranged from a minimum of 500,000 million per year to a maximum of one trillion by developed states. He Debate about this specific figure The agreement was on the verge of collapse after developing countries left the negotiating room to denounce that their requests were not being heard. At the end, Parties reluctantly accepted this figure And they sealed an agreement.

Donor base: developed countries, emerging economies and private sector

one of the following Big news from Baku agreement That is, unlike its predecessors, Sends a common message to “all public and private actors” in the world Go ahead and contribute to this cause. This appeal, between the lines, appeals to the entities Financial Institutions, Multilateral Development Banks And, in general, for the entire private sector. And although it has been made clear that the bulk of the financial commitment should be assumed by developed countries, such as Europe or United StatesToo Leaves the door open to other favored economies Collaborate with the cause. This umbrella would include, for example, China and Gulf countriesHowever in this case, Nor has any specific obligation to cooperate been made clear. Nor is any amount fixed. This issue has also been raised prominently Heated debate in final phase of summitBecause twenty-seven, including Spain, defended that these states, which currently stand out as major polluters, should also pick up part of the burden of the bill for climate chaos.

Search “Financing options”: taxes on large assets, aviation and fossil fuels

In the agreement sealed in Baku The need to “explore financing options” has been made clear for the first time To reach the trillion dollars annually that the Global South needs to avoid climate extremes. Under this euphemism, which may be somewhat confusing to some people, it is Appeal for all those proposals For example, construction has been claimed by many experts such as 2% tax for the great fortune of the planetIt is estimated that such initiative applied to 3,000 of the world’s wealthiest people Will be able to add up to $250,000 million per year For climate reasons. are also advocates Special taxes for particularly polluting sectors Such as aviation, maritime transport or extraction of fossil fuels. Many voices were raised in favor of such an initiative during the Baku meeting Secretary General of the United NationsAntonio Guterres, President of the Spanish Government, to Pedro Sanchez.

Structure of the Fund: The core of public funding and private sector collaboration

One of the issues that countries in the Global South have struggled with most, beyond a specific figure, is The structure of these climate funds has beenThe unanimous request was that this initiative be taken made up mostly of public money And, secondly, by private initiative. To stop all this money will be distributed as loan And like this, The debt situation has become worse The number of developing countries affected by the rapid increase in natural disasters. The final Baku Agreement speaks of the need for Both raise entirely public funds As a “private initiative promoted with public sector support”. According to organizations such as Greenpeace, the wording of the text itself It’s so vague and confusing, it leaves the door open. “A distribution of credit that will make the global South poorer.”

Geopolitical context: the major obstacle to “moving forward” on these agreements

Baku Agreement signed on climate finance Leaves, for many, a bitter tasteLargely because the meeting took place despite what was originally promised Failed to seal a commitment that was neither too concrete nor too ambitious To help the global south confront climate devastation. Baku Summit Chairman Mukhtar Babayev spoke on the issue, saying that “This is the best deal you can get. In A year of so much geopolitical fragmentation“.an idea which contains The ghost of Donald Trump and the threat that he will take back the United States Of all the international climate agreements Escalation of war in the Middle East and Eastern Europe. UN Secretary-General Antonio Guterres also took a stance in this sense, saying that “although I had hoped for a more ambitious agreement, I commend the efforts of countries to reach an agreement.” Consensus in such a turbulent time in history“This agreement is not the end, but a beginning on which I will continue to build,” he declared last night after the signing of the Baku accord.