Adib: Right negotiations needed to unlock $1trn climate finance target

As the world grapples with the urgent need for climate action, developing countries are facing a daunting challenge - the need for at least one trillion dollars annually to cope with the impacts of climate change. Rana Adib, the Executive Director at Ren21, believes that this amount represents about one per cent of global GDP and asserts that the funds are indeed available. However, the key to unlocking this financing target lies in the right negotiations. In a recent interview with CNBC Africa, Adib emphasized the crucial role of the private sector in meeting the financing needs for climate action. The ongoing negotiations leading up to COP29 are essential in determining the feasibility of reaching this ambitious financial goal. Adib highlighted two key aspects that will shape the outcome of these negotiations. Firstly, the level of support from various countries towards the one trillion dollar goal is increasing, signaling a growing momentum. However, the final decision will only be known at the conclusion of COP29. Secondly, Adib stressed the importance of recognizing that the required funds, while substantial, represent only a fraction of global GDP. By citing examples such as military expenses and fossil fuel subsidies, Adib underscored the feasibility of mobilizing the necessary financial resources for climate action. The interview also delved into the critical role of the private sector in driving renewable energy projects, grid developments, and storage initiatives. Adib highlighted that embracing renewable energy presents significant economic opportunities, leading to industrial growth and job creation. Notably, the transition to a green economy offers avenues for innovation and sustainable development, which can further catalyze economic progress. As the conversation steered towards addressing inequities in funding access, Adib emphasized the need for public-private partnerships supported by development banks. By leveraging public funds to attract private investments, developing countries can bridge the financial gap required for renewable energy projects. Additionally, Adib stressed the importance of adopting a long-term approach to financial planning to mitigate country risks and attract investment on favorable terms. The interview also touched upon the evolving geopolitical dynamics that could impact the global renewable energy agenda. With uncertainties surrounding the commitments of certain countries, such as the potential U.S. withdrawal from climate agreements, Adib acknowledged the geopolitical pressures shaping the outcome of COP29. Despite these challenges, Adib highlighted the growing momentum in regional collaborations and South-South partnerships, which are reshaping the global energy landscape. Looking ahead to COP30 in Brazil, Adib outlined key expectations and commitments that could drive the climate agenda forward. Highlighting the need to build an economy centered around renewable energy and efficiency, Adib underscored the importance of regional infrastructure development and industrial hubs. By fostering regional markets and trade, countries can unlock new opportunities for economic growth and collaboration. Adib also emphasized the significance of creating regulatory frameworks that ensure the responsible utilization of critical resources to benefit local communities and spur job creation. With Brazil set to host COP30, there is a unique opportunity to advance global climate goals and strengthen partnerships for a sustainable future.