MONEY TALKS
China can also play a bigger role in climate finance – the overarching theme at the COP29 climate conference in November.
In Baku, China played a key role in negotiations by encouraging parties to resolve disputes around the New Collective Quantified Goal (NCQG), a new climate finance goal that aims to bridge gaps in accessibility and prioritise developing countries’ needs.
China reinforced the importance of multilateral frameworks and argued that developed countries should still take the lead in climate finance contributions on account of the principle of common but differentiated responsibility.
COP29 parties were able to agree on a new goal consisting of two parts: Increasing “core” financing from the original US$100 billion to at least US$300 billion annually by 2035, and an “additional layer” of up to US$1.3 trillion primarily encompassing private financing. While this was criticised by some developing countries for its lack of ambition, the NCQG outcome nevertheless reflected progress.
Importantly, the COP29 deal was achieved with China willing to count its south-south and multilateral development bank finance in towards the new finance goal. This represents a significant step forward.
China has also, for the first time, publicly announced its climate finance contributions. At COP29, Vice Premier Ding Xuexiang said that China has provided and mobilised 177 billion yuan (more than US$24 billion) in support of climate action in the Global South since 2016.
