M AZIZUR RAHMAN From Baku, Azerbaijan | November 14, 2024 00:00:00
Chief Adviser Prof Muhammad Yunus speaks at the 29th Conference of Parties (COP29) held in Baku, Azerbaijan, on Wednesday. — PID 
A band of leading multilateral development banks (MDBs) revealed at climate summit here their estimated annual collective financing worth US$170 billion for low-and middle-income countries.
Meanwhile, in an LDC meeting with United Nations Secretary- General Antonio Guterres on the sidelines of COP29 Wednesday, Chief Adviser of the interim government of Bangladesh Prof Muhammad Yunus proposed a new world economic framework for tackling the climate crisis and creating a new civilisation that works for the earth and people.
The bankers, on the sidelines of the World Leaders Climate Action Summit at the COP29 in the Azerbaijan capital on Tuesday, said for low-and middle-income countries, the annual collective climate financing contributions from the group of MDBs are set to cumulatively reach $120 billion by 2030, including $42 billion for adaptation.
The MDBs also aim to mobilise $65 billion annually from the private sector.
For high-income countries, this annual collective climate financing is projected to come to $50 billion, including $7 billion for adaption, and the MDBs aim to mobilise $65 billion from the private sector.
The estimates encompass lenders including the Asian Development Bank (ADB), the World Bank Group, the African Development Bank (AfDB), the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDB), the Islamic Development Bank (IsDB) and New Development Bank.
The banking line has crossed over their 2025 climate-finance projections set in 2019, with a 25-percent increase in direct climate finance and mobilisation for climate efforts doubling over the past year.
The estimates were presented during the high-level meeting hosted by COP29 President Mukhtar Babayev. He was joined by Heads of States and Governments as well as senior executives from the lenders and other major financial organisations, including the International Monetary Fund (IMF).
One of the key pillars of the COP29 Presidency's plan - enabling action - involves putting in place the financing necessary to support urgent climate action.
Commenting on the estimates, the COP29 President, Mukhtar Babayev, said: "Every contribution is welcome, but there is still a clear gap between where we are and where we need to be. We are working closely with the shareholders of international financial institutions at COP29 as we seek to build the foundations of a fair and ambitious new climate-finance goal."
He continued: "We must deliver what the world expects, including climate financing that several multiples beyond existing arrangements, adequate to the scale and urgency of the problem. As a Presidency, we are committed to ensuring that Party and non-Party stakeholders have spaces available to discuss and progress such means of implementation."
Throughout the year, the COP29 Presidency has been supporting the full operationalisation of the Fund for responding to Loss and Damage so that it can begin disbursing much-needed and long-awaited funds as soon as possible.
The Fund is now ready to accept contributions after the signing of key documents. A ceremony on the second day of COP29 in Baku celebrated the signing of the Trustee Agreement and the Secretariat Hosting Agreement between the Board of the Fund for responding to Loss and Damage and the World Bank, as well as the Host Country Agreement between the Fund Board and the Fund Board's host country, the Republic of the Philippines.
With this important milestone reached, the Fund is now expected to start financing projects in 2025.
At Tuesday's event, Sweden also pledged approximately $19 million to the Fund, subject to government approval. This brings the total pledged funding to more than $720 million.
The COP29 Presidency thanks Sweden for answering the call to action and continues to urge further pledges to the Fund to better meet the needs of communities on the frontlines of climate change.
The COP29 Presidency also launched Tuesday a new high-level annual dialogue on coordination and complementarity for funding arrangements responding to loss and damage that will bring together stakeholders from within and outside of the UNFCCC process.
Speaking at the LDC high-level meeting with the UN Secretary-General, Antonio Guterres, Chief Adviser Prof Yunus made is call for a new economic framework for humanity, said a spokesperson for the CA.
Leaders of five major climate-vulnerable least-developed countries-Nepal, Malawi, Gambia, Liberia, and Bangladesh-joined the closed-door parley.
"We need a new economic framework that serves the planet and the people," the Chief Adviser said, adding that he backs the UN-sponsored Summit for the Future to create an economic order for the world's young people.
At another event Wednesday, the head of interim government called for creating a South Asian grid to share the hydroelectricity generated by Nepal and Bhutan.
On the sidelines of the COP29 climate conference in Baku, the CA said much of the hydroelectricity potential of the Himalayan nations remained untapped for a lack of electricity grids connecting Bangladesh, India, Nepal, and Bhutan.
Nepal officials have said the country has the potential to generate 40,000 megawatts of hydroelectricity, which can help lessen the reliance on fossil fuels in larger countries such as India.
The officials and the adviser made the remarks while they met with a social- business group on the sidelines of the climate summit.
"Bangladesh can easily bring hydroelectricity from Nepal as it is only 40 miles from Bangladesh. Nepalese hydroelectricity will also be cheap," Dr Yunus said.
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