Deadlock over climate finance is undermining Paris agreement, Singapore minister says

By David Stanway

SINGAPORE (Reuters) – Efforts by the United States and others to persuade more countries to contribute to a new global climate financing initiative risks undermining the Paris agreement, Singapore’s Environment Minister Grace Fu told Reuters on Wednesday.

Nearly 200 nations will gather in Baku, Azerbaijan for COP29 climate talks on Monday to thrash out the details of a deal known as the New Collective Quantified Goal, designed to deliver billions of dollars of climate finance to the regions that need it the most.

But the United States, Europe and others will only commit to the fund if the list of countries contributing to it is widened to include the likes of China, South Korea and Singapore, and the resulting deadlock could block progress during the talks.

Fu said there were “tough negotiations” going on about the definition and structure of the fund, but widening the donor base risks “unravelling” the Paris Agreement.

“The Paris Agreement has clear provisions … that talk about the responsibility of developed parties in supporting developing countries in mitigation and adaptation,” she said.

She said Singapore, which has already set up funds designed to speed up decarbonisation in Southeast Asia, would be willing to participate in the NCQG on a voluntary basis, but not as a “donor”.

The issue could be further complicated by the United States’ presidential election, with Donald Trump expected to withdraw from the Paris agreement for a second time if he is re-elected, narrowing the existing donor base.

Fu said it was too early to talk about the impact of the U.S. election on COP29, adding that Singapore hopes Washington will continue to be “involved, engaged and providing the necessary leadership”.

Also on the agenda in Baku will be Article 6 of the Paris Agreement, with countries still negotiating the small print on a global carbon credit market that will allow them to meet their climate goals by financing green projects beyond their borders.

There were hopes that Azerbaijan would be able to announce the completion of a key part of Article 6 in the first few days of COP29, which could build momentum for success elsewhere, but Fu said it was too early to say whether that would happen.

“The presidency has expressed their intention or their desire to see an early conclusion, and we, as co-facilitator are doing all we can to help bring that process forward,” she said.

“Obviously, there’s still a lot of work that needs to be done.”

(Reporting by David Stanway; Editing by Michael Perry)