RATIN

Climate finance: An opportunity for green economic recovery

Posted on August, 13, 2021 at 09:24 am


At the 2009 international climate change negotiations in Copenhagen, Denmark, developed countries pledged to extend ‘climate finance’ to the least developed countries with an aim of assisting them adapt to the impacts of climate change. This was a first of its kind application of the principle of common but differentiated responsibilities.

 The international climate change negotiations are meetings (often toward the end of the year) at which ‘the world’ meets to discuss how to reduce the risks and impacts of climate change. As promises go, this was a simple clear promise: rich countries would raise climate finance to $10 Billion per year from 2010-2012 and $ 100 Billion a year starting 2020.  Climate Finance was to be additional i.e. it would be additional to the overseas development assistance/ aid that developed countries were sending to developing countries for crucial needs such as  on health care, education, agriculture, and good governance etc. 

 With these pledges fulfilled, developing countries like Uganda would have accelerated up a road of low carbon development. Low carbon development, also known as a green economic pathway, is a phenomenon where development or economic growth is planned to purposefully be of lower carbondioxide emissions. The carbon (dioxide) represents other greenhouse gases that are emitted from man-driven economic activity. As the economy grows, populations grow driving up demand for housing and food; land may be liberated by clearing forests. Trees capture carbon so clearing those releases carbon back into the atmosphere.

 The low carbon remedy may include planting trees in hitherto barren/waste lands and/or re-stocking degraded natural forests. Also, as the economy thrives, more people may opt to drive cars. This burns more fossil fuel. The remedy is to advocate more fuel efficient cars, mass transit systems (e.g. buses and trains), encourage walking and cycling or zero emission cars. 

 At the 2015 climate negotiations in Paris, France, every country agreed to communicate or update their climate change action and targets, their Nationally Determined Contribution (NDC). This is one of the Global Green Growth Institute (GGGI)’s efforts in Uganda under the Ministry of Finance, Planning and Economic Development. The annual costs of implementing Uganda’s NDC ambitions in energy, agriculture, infrastructure and water was estimated in the range of $3.2 billion to $ 5.6 billion. However, Uganda’s NDC is ‘conditional’. The full implementation of the priority adaptation and mitigation strategies depends (is conditional) on accessing significant external support. 
A 2021 report by the World Bank shows that Covid-19 restrictions contracted Uganda’s Gross Domestic Product (GDP) by 1.1 per cent in 2020. 

The same report opines that the land degradation and unsustainable soil erosion (which may both be attributed to climate change as drivers or responses), causes an estimated 17 per cent loss of GDP i.e. about $ 6.4 billion.  Like a good movie, the international climate change negotiations return in November 2021. 

This time in Glasgow, Scotland. It is safe to predict that as has been the case in private conversations, in phone calls, at the unprecedented record number of dinners at home with our families, in markets and in all speeches by every head of state and government, the subject of the impact of the dreaded Covid-19 pandemic will be discussed. We shall all agree in diplomatic voices that Covid-19 has disrupted many parts of the global economy; perhaps also that developing countries have suffered disproportionately. 

We may laud countries who have donated Covid-19 relief, budget support and vaccines to protect lives and livelihoods. As at previous international negotiations, more simple clear promises may be made. While that happens, climate change, the ultimate threat of all life on earth, shall continue. It is time to uphold previous simple clear promises.

Source: Daily Monitor