COP30 Climate Meeting in Belem, Brazil
The COP30 climate meeting in Belem, Brazil, has included a key demand from developing countries regarding international finance in its provisional agenda, potentially reigniting tensions between developed and developing nations.
International Finance Dispute
- The agenda includes a discussion on Article 9, paragraph 1 of the Paris Agreement which mandates developed countries to provide financial resources to assist developing nations in mitigation and adaptation efforts.
- Developing countries, including India, argue that Article 9.1 was not addressed in the previous finance agreement at COP29 in Baku, Azerbaijan, which focused only on the obligation to "mobilise" funds.
- The Baku agreement required developed countries to mobilize at least US$ 300 billion annually from 2035, triple their current commitment, but did not address the funding provision obligations.
- Article 9.1 and 9.3 are independent obligations: Article 9.1 involves public funds, while Article 9.3 allows mobilization from private sources.
- Developing countries demand more public funds, new and additional resources, and prefer grants or soft loans as financial aid.
- The demand for increasing climate finance to US$ 1.3 trillion annually was ignored last year, prompting dissatisfaction among developing countries.
- At the mid-year Bonn conference, the Article 9.1 issue led to a two-day disruption, resulting in its inclusion in the COP30 agenda at Bolivia's request on behalf of the Like-Minded Developing Countries (LMDC) group, including India.
Carbon Tax and Trade Restrictions
- The agenda also addresses "trade-restrictive unilateral measures," referencing the Carbon Border Adjustment Mechanism (CBAM), a carbon tax imposed by the European Union on imports with high carbon footprints.
- Developing countries view CBAM as a restrictive trade practice masked as climate regulation, conflicting with international trade rules.
- The CBAM issue caused negotiation delays at the previous meeting in Baku and remains unresolved.
Provisional Agenda and Approval
- The provisional agenda requires consensus approval at the COP meetings.
- Contentious agenda items have led to significant stand-offs in previous meetings, occasionally delaying approval until the second week.
- The inclusion of Article 9.1 discussion is expected to face strong opposition from developed countries at the start of COP30.
