COP28 outcome on carbon markets, adaption funds ‘disappointing’ – Jagdeo
General Secretary of the People’s Progressive Party (PPP), Bharrat Jagdeo, noting the outcomes of the Conference of Parties (COP28) held in Dubai, United Arab Emirates (UAE), stated that it failed to address fundamental concerns critical for adaptation and climate resilience for developing and forested countries.
Jagdeo pointed out during a press conference on Thursday (December 14, 2023) at Freedom House, Robb Street, that Article Six of the Paris Agreement, which deals with a compliance carbon market, failed to gain traction at the summit, a setback that prevents countries from benefitting financially for preserving their forests.
Guyana’s contribution to COP28, in this area, focused on championing the cause for the establishment of market-based mechanisms to promote forest conservation is based on the Low Carbon Development Strategy 2030 (LCDS 2030). “It’s an age-old fight, we started in 2007 to push for this market-based mechanism. We did not succeed because the global north was unprepared to put up the money,” Jagdeo explained. According to him, this will impact developing forested nations that are providing a service to the global community in the fight against climate change and its effects.
However, he said Guyana will not be adversely impacted as it has embarked on a pathway that will see the country earning US$750 million in ten years through the sale of its carbon credit to Hess Corporation in the voluntary carbon markets. As such, 15 per cent (US$112 million) will be injected towards Amerindian further advancing their development, whilst the remaining sum are to be used for adaption and climate resilience infrastructure. “Unfortunately, a lot of very good countries that have good policies surrounding the forests, they’re not going to get that financing at magnitude like we got because we struck out on our own,” he informed media operatives.
ADAPTION
Although each country has recognised the need for smaller countries to implement climate adaptation mechanisms, a pledge from developed countries to provide long-term predictable financing at scale for these nations did not materialize.
“They recognise that the countries don’t have the capability, the financial capacity to do it and yet they’re unprepared to assist them to do it, the developed countries … so, we leave COP28 without any long-term predictable financing at scale for adaption for these countries and it’s a pity,” he further highlighted.
Jagdeo said this is a major loss for countries that are financially constrained when it comes to climate adaptation and have no assets such as the forest, to provide additional revenue streams.
LOSS AND DAMAGE FUND
Meanwhile, the COP28 saw the advancement of the ‘Loss and Damage’ Climate Fund, where nations promised to aid developing countries in coping with climate-related harms. However, the funds pledged so far appear to be a mere drop in the bucket.
Coupled with that, the mechanism through which the funds will be disbursed, Jagdeo noted is somewhat bureaucratic.
“You would see that this is a paltry sum … it will be a significant while before it gets to the hands of these countries but it’s a tiny sum. Just think about $400 odd million for the entire world for loss and damage,” he went on to say.
TRANSITION TO RENEWABLES
COP28 also saw countries agreeing to transition from fossil fuel and tripping the use of renewables, which the General Secretary believes is unrealistic due to the absence of financial resources to transition to renewables. He believes that this is just wishful thankful unless it is backed up by investment and a major reduction in the demand for fossil fuel.
“It’s just like giving it to wishful thinking because countries are going to operate on the basis of what’s in their best interest … and by phasing out fossil fuel, it will drive up cost significantly,” Jagdeo said.