COP29 to operationalize disbursement of L&D fund; ramp up call for clean energy financing

BAKU, Azerbaijan – As existential threats on vulnerable countries are escalating, one of the major action agendas being advanced in this year’s 29th Conference of the Parties (COP29) of the United Nations Framework Convention on Climate Change (UNFCCC) will be operationalization of the long-awaited disbursement of loss and damage (L&D) fund.

In last year’s COP 28 in Dubai, a landmark agreement was reached on the allocation of $700 million L&D fund, an initiative birthed through years of global climate negotiations, and has been aimed at addressing severe impacts to communities that are on the frontline of climate change risks, such as rising sea levels that have been swallowing island-nations or catastrophic storms triggering loss of lives and economic opportunities.

Typically, hardest hit by extreme weather events have been least developed countries (LDCs) as well as small island developing states (SIDS) – and the Philippines has been classified as among the most vulnerable countries when it comes to the irreversible affliction of the worsening climate crisis.

In an interview with global journalists, Azerbaijan Presidential Advisor for Foreign Policy Hikmet Hajiyev noted that in their country’s hosting of COP29, one of the priority action items targeted will be to establish mechanisms on the operationalization of the L&D fund – and that will primarily cover disbursement to qualified beneficiary-countries.

“What does operationalize mean? It means that funds should go to the particular countries – disbursement process should start… and for the parameters, what I sense is that: there’s overall consensus on the air – but it has to be taken on the table and on paper; and to bring it into particular direction,” he stressed.

Apart from sorting out equitable and efficient disbursement of the L&D fund, one key agenda that will also take centerstage at COP29 will be building up clean energy financing that shall be funneled to projects underpinning the energy transition agendas of more than 120 countries which committed on to revolutionary shifts in their energy systems – primarily on ramping renewables and energy efficiency investments as well as on the escalation of coal plants phasedown.

“One of the biggest expectation of the international community is about the new quantified financial goal – that is the expectation of the world. Of course, we are avoiding to speak any particular figure but we have some ideas, and we respect the negotiation process -- but we should think more, and discuss more with appropriate stakeholders – and agree on what should be the new quantified financial goal for the international community,” he said.

Azerbaijan President Ilham Aliyev stipulated that their country has signed declarations “on strategic partnership with 10-member states of the EU (European Union), with him emphasizing that “we are actively working with the small island developing states, we are planning to establish a special fund to support them.”

The COP29 host-country, nevertheless, indicated that they cannot give quantified amount on targets at this point because these shall be part of the negotiation processes during the climate change summit in November.

Aliyev asserted “for us here in Azerbaijan, climate change is a problem – for them, it is an existential threat. So we are trying to demonstrate maximum responsibility and at the same time, to build bridges between different parts of international community.”

The Azerbaijan president qualified that “one of the most important results – if we achieve at COP apart from financing, will be putting down mutual accusations and stopping blaming each other for what is happening.”

He thus appealed to the international community that “we need to join our efforts, put down all these claims and concentrate on the agenda – which will help us to live in this planet – not only for us, but also for our children and grandchildren.”