Baku: The South African government has expressed strong support for a landmark finance deal, which commits high-income economies to contribute US$300 billion per year by 2035 to fund climate initiatives in developing nations. The agreement was finalized at the United Nations Framework Convention on Climate Change (UNFCCC) 29th Conference of the Parties (COP29), which concluded in Baku, Azerbaijan, in the early hours of Sunday.

According to South African Government News Agency, the agreement is a pivotal step towards encouraging both the private sector and multilateral development banks to increase financing for developing economies, with a target of scaling up to US$1.3 trillion annually by 2035. Maesela Kekana, the Deputy Director-General for Climate Change and Air Quality Management at the Department of Forestry, Fisheries and the Environment, emphasized the importance of reforming the multilateral financial architecture to effectively address the climate crisis, calling for enhanced support from financial
institutions through grant-based and concessional financing.

South Africa’s delegation at the conference was led by Minister of Forestry, Fisheries and the Environment, Dr. Dion George, who hailed the outcomes of COP29 as a significant victory for the nation. Among the key achievements was the adoption of the Baku Climate Unity Pact, which includes a New Collective Quantified Goal (NCQG) on climate finance, a Global Goal on Adaptation, and measures from the Sharm el-Sheikh Mitigation Ambition and Implementation Work Programme. Furthermore, the adoption of Article 6.2 and 6.4 decisions on carbon markets is expected to pave the way for new carbon market projects, fostering investments in green technologies and economic opportunities in South Africa and other developing economies.

Minister George expressed optimism that the decisions made at COP29 would lead to meaningful progress in quantifying resources for developing economies to achieve ambitious climate targets. Despite some complaints from other parties
regarding the COP29 Presidency’s leadership and the consensus process, George views the outcomes as a step in the right direction, especially as South Africa is set to assume the presidency of the G20.

The South African negotiating team was particularly satisfied with the outcomes related to the Mitigation Work Programme, which Minister George co-chaired with his Norwegian counterpart, Tore O. Sandvik. The program is anticipated to facilitate the sharing of experiences and the alignment of investment needs with potential investors. On the adaptation front, parties are progressing towards finalizing adaptation indicators to track progress on the global adaptation goal, with a target completion at COP30 in Brazil in 2025.

Additionally, the conference acknowledged the swift establishment of the Loss and Damage Fund, which, under the leadership of South Africa and France, aims to disburse funds to climate-vulnerable communities by mid-2025. The department expressed confidence that COP29 was a resounding success
, inspiring hope for even greater achievements in the future.