G20 Boost to New Finance Goal, Adaptation Fund Shortfall, Progress on Indicators, and More

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Today in Climate Proof:

Finance:

• What’s Going on with the New Climate Finance Goal?

• Adaptation Fund Short on Pledges

• MDBs Promise US$42bn for Adaptation

• “Virtual Green Bank for Adaptation” Wins Financing

Policy:

• COP29 Makes Progress on Adaptation Indicators

• Europeans Back Adaptation Action

Tech:

• Governments, Orgs, Commit to Green Digital Tech

• Climate-friendly HVAC Startup Closes Seed Round

Research:

• Another round-up of papers and journal articles on all things climate adaptation

What’s Going on with the New Climate Finance Goal?

It’s the second week of COP29 and time is running out for countries to agree on a New Collective Quantified Goal on climate finance (NCQG) – though their efforts may have been given a boost by G20 leaders.

In Baku, parties are continuing to finesse ideas on how the new goal should be structured, who should pay in, and — perhaps most importantly — how large it should be.

A new 25-page draft text circulated on Saturday, while shorter and simpler than Wednesday’s 33-page version, still contains a wide range of options and vast amounts of contested language.

At a press conference today (Monday), COP29 president Mukhtar Babayev said Yasmin Fouad, Egypt’s Environment Minister, and Chris Bowen, Australia’s Climate Change Minister, would work to clear the roadblocks to an agreement.

“We still have a long way to go. With ministers now in Baku, we need parties to work together to find solutions for the key political issues,” said Babayev.

One question — over which countries should contribute to the NCQG — may have been resolved thousands of miles away from Baku. Reuters reports that G20 leaders gathering in Brazil have tentatively agreed to a joint statement that says developing countries may make voluntary contributions to climate finance goals. At COP29, one of the fiercest divisions is between rich countries and relatively well-off developing states, like China and Saudi Arabia, over whether the latter should pay into the NCQG. A G20 agreement could end the conflict over this issue at COP29 and speed up negotiations.

Last week, a UN-backed expert panel said developing countries need at least US$1trn from overseas sources per year to 2030 to meet climate adaptation and mitigation goals, and $1.3trn per year by 2035. To achieve this, private finance flows would have to increase 15 to 18 times in size, rich country contributions would have to double or more, and multilateral development bank finance triple.

The panel added that poor countries need around US$250bn a year of adaptation finance from all sources to achieve Paris Agreement objectives.

Some options in the latest draft text propose a US$1.3trn per year overall NCQG, paid for by a mix of rich country governments and private investors. However, others simply say the goal should have a “floor” of US$100bn.

Adaptation Fund Short on Pledges

Contributions to the UN’s dedicated fund for adaptation are far below target at the start of the second week of COP29.

The Adaptation Fund had secured US$61mn from donor countries as of November 14, about one-fifth of the US$300mn called for by UN officials. “This year, the situation looks quite difficult,” said Adaptation Fund chief Mikko Ollikainen in an interview with Climate Home News. “We hope … these figures will change.”

At 2023’s COP28, the Adaptation Fund won US$188mn in pledges, also below that year’s US$300mn target.

Amounts Pledged To Adaptation Fund, 2021-2024

So far this year, the Adaptation Fund has received financing promises from Denmark, Iceland, Ireland, Norway, South Korea, Sweden, Switzerland, several Belgian local governments and Spain — the biggest contributor at US$19mn.

The Adaptation Fund supplies finance to developing countries in support of climate-proofing projects. This year it has focused on locally led adaptation projects, overseen by cities, local governments, and other organizations at the sub-national level. Since 2010, the fund has allocated over US$1.2bn across 183 projects. 

Demand for support from the Adaptation Fund has long outstripped its resources. At the start of COP29, it had a US$500mn pipeline of unfunded projects, up from US$425mn the year before.

In a pre-COP report, the Adaptation Fund Board reported funds available for new project approvals of $490mn million as of June 30.

MDBs Promise US$42bn for Adaptation

Eleven multilateral development banks (MDBs) plan to nearly double annual adaptation financing for poor countries by 2030, to US$42bn.

Last year, the group of lenders — which includes the World Bank Group, Inter-American Development Bank, and European Investment Bank — provided US$24.7bn in adaptation finance to low and middle-income nations. Total climate finance given in 2023 to these countries amounted to US$74.7bn, an increase of one-quarter on the prior year.

In a joint statement from COP29, the MDBs said they expect overall climate finance to poor countries to reach US$120bn per year, of which adaptation would account for roughly 35%. For rich countries, the banks say overall financing could hit US$50bn a year, of which US$7bn would be earmarked for adaptation.

However, the MDBs warn that these financing ambitions depend on the support of their shareholders — many of which are rich country governments. The US has a 17.25% share of the World Bank Group, for example. As things stand, it is unclear how far the US under Donald Trump’s presidency would continue to support MDBs on climate priorities.

“Provision of climate finance at scale … depends on increased MDB internal resources; a larger pool of grant and concessional funds to support enhanced policy dialogue, finance public goods and mobilize private finance; and additional capital to unlock more MDB financing,” the statement reads.

“Virtual Green Bank for Adaptation” Wins Financing

A new financing platform has secured US$3.1mn in funding from UN- and US-backed bodies to become a one-stop-shop for adaptation and resilience solutions.

The Systemic Capital for Adaptation Localization and Expansion (SCALE) project, the brainchild of sustainable private equity firm The Lightsmith Group, won financial commitments from the Global Environment Facility — which oversees the UN’s climate funds — and US development agencies USAID and the Development Finance Corporation.

SCALE will offer a full menu of equity, debt, and technical solutions to startups and established companies offering climate-proofing solutions, especially in developing countries. As a first step, the project will consider backing companies and tech working on climate resilient health and biodiversity, agricultural analytics, water management, resilient food systems, geospatial intelligence, and more.

SCALE was first announced at New York Climate Week in September.

“Investing in climate resilience and adaptation is an ‘unavoidable opportunity,’ particularly in developing countries,” said Sanjay Wagle, Co-Founder and Managing Director at The Lightsmith Group. “SCALE will develop the first private investment platform for climate resilience and adaptation technologies and solutions in developing countries — a ‘Virtual Green Bank’ for Adaptation.”

Other Stuff

COP29 host Azerbaijan shelves fossil-fuelled climate fund (Climate Home News)

UK Prime Minister Sir Keir Starmer tells private sector to ‘start paying their fair share’ on global climate change (Sky News)

Canada invests in climate change adaptation to keep communities safe in British Columbia and across Canada (Government of Canada)

Flood risk: protective measures up to ten times more cost-effective than rebuilding (Swiss Re)

NGFS conceptual note on adaptation (Network for Greening the Financial System)

Why are only 20% of businesses prepared for climate-related disasters? (Accountancy Age)

COP29 Makes Progress on Adaptation Indicators

Efforts to define adaptation progress indicators are advancing at COP29, though parties admit completing the task on time will be challenging.

Experts have been asked to “significantly” cut down a list of proposed indicators on the way to producing a “streamlined and manageable set” by next year’s COP in a draft text published on Saturday.

The paper addresses progress regarding the Global Goal on Adaptation (GGA), a part of the Paris Agreement aimed at strengthening countries’ climate resilience and boosting their “adaptive capacity”. 

At last year’s COP, delegates adopted the United Arab Emirates–Belém work programme, which was tasked with choosing indicators for 11 adaptation targets that support the GGA. These targets are divided across seven themes — water, food systems, health impacts, ecosystems and biodiversity, infrastructure and human settlements, poverty, and cultural heritage — and four elements of the adaptation cycle: climate risk and vulnerability assessments; planning; implementation and monitoring; and evaluation and learning.

Ahead of this year’s COP, technical experts convened by UN bodies were instructed to map over 5,300 existing and new indicators submitted by countries and organizations to the 11 targets. Around 40% were found to apply to more than one target, with the largest number — 2,244 — applying to the implementation and monitoring target. Among the thematic targets, agriculture had the most indicators, at 1,116.

Number Of Indicators Mapped To Each Target

The latest draft text, which is supposed to set the agenda for the remainder of the work programme’s term, recognizes that “further guidance is required” for experts engaged in the technical work of refining and agreeing the indicators. It also proposes a set of criteria on refining existing, and creating new, indicators.

Countries forwarded the draft paper for final negotiations this week, noting it “is not an agreed text” and “represents work in progress.”

Europeans Back Adaptation Action

Nine in ten Europeans say it is important their country adapts to climate change, and half say adaptation action needs to be prioritized, the latest European Investment Bank (EIB) climate survey shows.

Countries in the more climate-vulnerable south were more likely to stress the need for action, with 65% saying adaptation needs to be prioritized.

An annual poll of European citizens has been conducted by the EIB since 2018. This time around, over 24,000 people were canvassed across the EU’s 27 member states.

While 94% of respondents say there is a need to adapt to climate change, a smaller percentage — 72% — recognize that their lifestyles will have to change because of runaway warming. Over one-third believe they will have to move to a less vulnerable area to avoid climate risks like floods, fires, and extreme weather events, and 28% say they may have to move to a cooler region.

On specific adaptation priorities, 42% emphasized cooling cities, and 39% making climate-resilient infrastructure. In addition, 85% say adaptation investment is urgently required to head off higher costs in the future.

Other Stuff

COP29 Presidency announces ministerial pairs on adaptation, mitigation and Article 6 (COP29 Presidency)

International partners publish joint statement endorsing Baku Initiative on Human Development for Climate Resilience (COP29 Presidency)

We need a strong and independent NOAA to protect our lives and homes from climate change (Union of Concerned Scientists) 

NOAA advances efforts to identify aquaculture opportunity areas (US National Oceanic and Atmospheric Administration)

Governments, Orgs, Commit to Green Digital Tech

Over 1,000 national governments, tech companies, and NGOs pledged to advance digital technologies for combating climate risks and strengthening disaster preparedness at a COP29 side event last Saturday.

The COP29 Declaration on Green Digital Action encourages collective action on high tech solutions for climate adaptation and mitigation. Among the eight objectives included, signatories commit to nurture tech that “support[s] climate-resilient communities” and “enhance climate monitoring and forecasting and strengthen emergency response and preparedness” through digital solutions, like mobile early warning systems.

The Declaration also calls on parties to improve tech for energy modeling and forecasting, which is key to building more climate-resilient power grids. There is also language on “designing digital infrastructure resilient to climate change impacts” and mobilizing finance and research and development toward “sustainable digital technologies and resilient infrastructure.”

The Declaration is voluntary and non-binding. However, signatories say they plan to incorporate the eight objectives into national climate strategies and policies.

Climate-friendly HVAC Startup Closes Seed Round

Clean tech company Helix Earth Technologies has secured US$5.6mn to develop its low-energy air conditioning hardware, which offers a more sustainable way for offices and other commercial buildings to stay cool.

The startup uses tech pioneered by NASA to build small retrofit devices that attach to rooftop air conditioning units. These add-ons pre-dehumidify the air that goes into the rooftop units, helping lower the amount of power they need by 50%.

Helix’s seed funders include Veriten, an energy research, strategy, and investing firm, Anthropocene Ventures, and Semilla Capital.

Helix Earth Technologies won the Urban Future Prize Competition earlier this year from a top New York City-based climate tech incubator.

Other Stuff

‘This app saved my farm’: How technology is helping Nepali farmers fight climate change (Islamic Relief Worldwide)

A new tool to measure agricultural water insecurity (CGIAR)

Promoting climate resilience and financial inclusion: WRMS combines IoT and AI for climate risk solutions (The CSR Universe)

Geospatial innovation is transforming climate adaptation in Asia (Earth.org)

RESEARCH

Climate warming is expanding dengue burden in the Americas and Asia (medRxiv)

Framing resilience to manage complex environmental systems (One Earth)

Global Climate Resilience Platform: Status update report (IFRC)

Thanks for reading!

Louie Woodall
Editor