According to the United Nations Framework Convention on Climate Change (UNFCCC), adopted in 1992, high-income, industrialised nations (referred to as Annex II countries) are responsible for providing finance and technology to help developing countries combat and adapt to climate change. These countries include the United States, Canada, Japan, Australia, New Zealand, and European Union (EU) member states such as Germany, France and the UK.
Some developed countries, led by the EU and the US, argue that the global economic landscape has changed significantly since 1992.
They suggest that nations which have become wealthier during this period, like China and some Gulf states, should also contribute to the new climate finance goal.
Developing countries view this as an attempt to shift responsibility from those who have historically benefited from industrialisation and contributed the most to greenhouse gas emissions. They argue that expecting them to contribute, especially when many are still struggling with poverty and inadequate infrastructure amid worsening climate impacts, undermines the principle of equity.
In a submission to the UNFCCC last week, the European Commission said that the “collective goal can only be reached if parties with high GHG emissions and economic capabilities join the effort”. The US said that while current contributors will continue to support developing countries, other nations with the “capacity to support others in pursuing mitigation and adaptation must also be accountable for delivering on the NCQG’s support layer”. “Their contributions will also enable a larger quantum for the support layer of the NCQG,” the US said, adding that contributing parties could be identified in various ways — through a “definitional approach, a criteria-based approach, a de facto approach, or otherwise”.
“We are open to discussing various options. In no event are we considering a large number of new contributing parties,” said the US, the world’s second-largest GHG emitter.
Switzerland proposed that in addition to developed countries, parties that are among the “10 largest current emitters and have a purchasing power parity-adjusted gross national income per capita of more than USD 22,000” should also contribute to the new climate finance goal.
This proposal puts the spotlight on countries such as Saudi Arabia, Russia and China.
According to the Swiss proposal, countries with cumulative past and current emissions per capita of at least 250 tonnes of carbon dioxide equivalent and a purchasing power parity-adjusted gross national income per capita of more than USD 40,000 should also contribute.
Diego Pacheco, spokesperson for Like-Minded Developing Countries (LMDC) and lead negotiator for Bolivia, told PTI that developing countries oppose the idea of reopening and widening the contributors’ base beyond the established framework of the UNFCCC and the Paris Agreement.
“This goes far beyond the mandates for discussing the NCQG. Developed countries should fulfil their financial commitments,” he said.
Pacheco said the principles of equity and common but differentiated responsibilities should be central to the negotiations for formulating a meaningful NCQG.