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South Africa: Call for Access to Finance to Emerging Markets for Low Carbon Investment

south africa call for access to finance to emerging markets for low carbon investment

With emerging markets requiring an estimated US$3-4 trillion annually in low-carbon investments over the next 15 years, Minister of Forestry, Fisheries and the Environment Barbara Creecy has called on developed countries to ensure access to long-term, predictable, and affordable finance for developing countries.

The Minister made these remarks during the Ministerial Climate Change meeting hosted by the United Nations Framework Convention on Climate Change (UNFCCC) COP 26 President-Designate, Alok Sharma, on 25 and 26 July 2021 in London.

“The meeting heard that the emerging markets require an estimated US$3-4 trillion annually in low-carbon investments over the next 15 years in order to operationalise and implement the current round of updated nationally determined contributions (NDCs) and then to prepare a second updated NDC in 2025,” the Department of Forestry, Fisheries and the Environment said on Tuesday.

NDCs embody efforts by each country to reduce national emissions and adapt to the impacts of climate change.

As part of the Paris outcome, developed countries were urged to scale-up their level of support with a concrete roadmap to achieve the goal of mobilising US$100 billion per year by 2020 for climate action in developing countries.

“With regard the US$100 billion 2020 and through to 2025 [Creecy] stressed that it is imperative from the perspective of restoring and maintaining trust and transparency that the Conference of the Parties (COP) assess whether the goal of mobilising jointly US$100 billion has been achieved,” the department said.

The July Ministerial meeting brought climate and environment ministers and representatives from more than 50 countries together to lay the groundwork for success ahead of November’s Glasgow COP26 negotiations on climate change.

The event marks the first face-to-face ministerial of its kind in more than 18 months.

The topics under discussion included the Global Goal on Adaptation and scaling up efforts to adapt to the impacts of climate change, keeping 1.5°C alive, loss and damage caused by climate change, focus on Article 6 of the Paris Agreement, and mobilizing climate finance.

The Minister stressed that for the UNFCCC COP 26 in Glasgow to be relevant, responsive and successful they need ambition and progression on mitigation, adaptation and means of implementation.

“South Africa envisages an outcome at COP 26 on adaptation that will enable practical progress, including launching a formal programme of work on the operationalization of the Global Goal on Adaptation” and furthermore.

“We need to increase the adaptive ability and resilience of the global population to the adverse impacts of climate change by at least 50% by 2030 and by at least 90% by 2050.

“In this regard, focus would be placed on the most vulnerable people and communities; the health and well-being; food and water security; infrastructure and the built environment; and ecosystems and ecosystem services, particularly in Africa, Small Island Developing States (SIDs) and Least Developed Countries (LDCs),” the Minister said.