Developing nations are estimated to require a total of $1 - $3 trillion annually to make substantial progress in climate transition, according to Mari Pangestu, a former World Bank official. She emphasized that the limited availability of financial resources has hindered those countries from cutting their elevated carbon emissions and transitioning to clean energy, a scenario that has caused discord between developing nations and developed countries that are advocating for swifter progress in climate-related matters.
Developing nations will require approximately $1-3 trillion annually to make progress in transitioning to a lower-carbon economy, said Mari Pangestu, a former World Bank official. She noted that without the necessary funding, it becomes challenging for developing countries to reduce their high emissions and move to cleaner energy sources, creating a point of contention between developing countries and the developed world who are pushing for greater action on climate issues. Pangestu, a former Indonesian trade and tourism minister, explained the "key word is actually - transition." She added, "How do you transition from the high emission now to clean energy? It will require us to have resources." This shortage of resources is one of the major causes of the stalled progress at the G20 meeting of climate ministers, which concluded recently in India.
The negotiations held in late July were concluded without agreement on key issues to tackle the climate emergency, like the question of providing financing for developing nations. Bhupender Yadav, India's climate change minister, who chaired the gathering, admitted that "certain matters relating to energy, and some goals-related matters" had been contentious.
The July climate meeting was considered an opportunity for the world's most prominent emitters to take practical actions before the G20 leaders' gathering in September in New Delhi and the COP28 Summit in the United Arab Emirates in December. Environmentalists severely rebuked the lack of an agreement. "Climate disruption is worsening with each passing day, yet Europe and North Africa are on fire, and Asia is inundated with heavy flooding, and the G20 climate ministers are unable to meet a consensus on how to put an end to the crisis," said Alex Scott of climate change think-tank E3G. "Claims of Saudi Arabia and China safeguarding the interests of developing nations is contradicted by their efforts to impede the forum's capacity to debate a different course on energy transition," he added.
China denied allegations they hindered climate talks at the G20 summit, expressing "relevant reports totally run counter to the facts." The Ministry of Foreign Affairs maintained that the event "secured positive and balanced outcomes." Although, they noted with regret how "some countries brought up geopolitical matters to impede progress, resulting in the inability to produce a communique." without offering further explanation.
Pangestu stated that the climate crisis necessitates a sense of urgency and magnitude, requiring efforts from all parties involved. She noted that countries need to utilize their own resources and that multilateral development banks and other entities must be utilized in order to lessen the cost and risks to draw in the private sector.
Pangestu contended that in order for developed countries to move away from fossil fuels and "phase out coal plants in advance," they should offer more assistance to developing nations. "What South Africa and Indonesia have recently done regarding this matter is basically say: 'We're prepared to do this, but who's going to foot the bill?'" she inquired. "The companies involved in this are private firms, and therefore should receive compensation for their losses. There's a legal component to this, as well as a financial element. This is where we need to dive into policies and reforms to get the job done."
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