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Loss & Damage Fund will be key test for COP success on climate finance

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Loss & Damage Fund will be key test for COP success on climate finance

Finance is set to be at the heart of COP28, the UN climate summit starting on Thursday in Dubai, with economists saying that around $1 trillion per year is needed to support developing countries in their fight against climate change.

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Pakistan is a prime example of a country in dire need of help, given how poor it is and the impact climate change is already having on it, with the whole country almost completely flooded in 2022.

Although it emits less than 1% of the world’s greenhouse gas emissions, natural disasters are becoming ever more common and devastating.

During COP28, an agreement is expected to be reached on how much money will go to a new Loss and Damage Fund. It is intended to pay for the costly consequences of extreme weather events.

The World Bank is the provisional host of the fund and prefers to provide loans rather than grants for this purpose. 

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On the other side, developing countries in the so-called Global South would prefer an independent body to host the fund, but the main discussion will be about how much money to invest and which countries will contribute.

“The European Union has clearly signalled (…) its willingness to support this with contributions that are substantial, which is likely going to be on the level of billions of euros,” Cecilia Trasi, an analyst from Brussels-based think tank Bruegel, told Euronews.

“On the other hand, the US envoy John Kerry has also announced contributions of millions of dollars, which is on a very different scale of magnitude and still open is the question of will countries that were considered developing in 1992, like Saudi Arabia and China, will they contribute or not?.”

The European Parliament will send a 12-member delegation to the conference. Socialist & Democrat MEPs, included in the group, have defended high money contributions, saying that it helps to show global solidarity.

The political group will propose, in the coming months, that a similar fund be created just for the EU.

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“We need to help people adapt to the new situation. We need to help farmers so that they can continue to grow crops that are much more resistant and resilient when it comes to climate change,” Mohammed Chaim, a Dutch socialist MEP said in an interview.

“Because at the end of the day, if we help vulnerable communities, we create support for the European Green Deal and that is something that we all benefit from.”

For Trasi, the EU can use this instrument to resolve imbalances member states face when it comes to dealing with climate change.

“It would be very interesting to see how this would affect all discussions about fiscal reform, quite simply because perhaps one way of resolving this issue would be to allow more room for manoeuvring to countries that are in difficulty, but that are also suffering the worst consequences of climate change,” the analyst told Euronews.

Previous financial promises yet to be fulfilled

Rich countries are still missing out on the first fund created in 2019. The UN’s Green Climate Fund was supposed to have collected $100 billion (€91.5 billion) a year to help developing countries invest in the transition to clean energy systems.

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“The harsh reality is that $100 billion is probably just a drop in the ocean of developing countries’ actual transition needs, which are estimated to be in the billions. Thus, the entire transition is estimated at $4.4 billion (€4 billion) and so we clearly see that we need to increase ambitions in terms of climate financing,” explained Trasi.

The right-leaning European People’s Party (EPP) said that it should be realised as soon as possible.

“At the end of the day, we have to acknowledge the fact that the EU is indeed doing its best for climate transition, but if we do not do it along with the US, China and India, we cannot mitigate climate change,” Portuguese EPP MEP, Lidia Pereira told Euronews.

The EU can also play a role by expanding its domestic capacity to produce renewable energy systems that can be exported to the rest of the world, but investment within the bloc is lacking, she added.

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“We need to raise more capital, public and private because we have a prominent position in the development of clean technologies. We have many start-ups flourishing across Europe, but they lack the capital to expand their operations,” Pereira said.

Chaim also advocates for more cooperation to transfer clean technology and partnerships involving the private sector, to create a cycle of mutual benefit

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“All of Africa has fewer solar panels than a country like the Netherlands. Imagine the results of giving them access to affordable and sustainable solar panels?” he told Euronews.

“One day we could even import this cheap and sustainable energy to Europe. Everyone would benefit from this because the EU is a net importer of energy.”

Jorge Moreira da Silva, executive director at the UN Office for Project Services said in an interview that climate action “would require $4-6 billion (€3.6-€5.5 billion) every year and that the majority of this amount should go to developing countries.”

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“Infrastructure is responsible for almost 80% of greenhouse gas emissions,” he added.

“We need to support developing countries with additional financing so they can access energy that is affordable, that is sustainable, that is clean and that is inclusive and then we also need to deal with loss and damage, and adaptation.”

At the same time, with climate change worsening and the intensity and frequency of natural disasters, more and more infrastructure needs to be rebuilt or replaced with more environmentally friendly versions.

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Thousand of politicians and scientific advisors at COP28 are expected to issue recommendations on a new framework for international climate finance, as well as a definitive roadmap on how to implement them.

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Iraq's Kurdish Regional Security Council announces arrest of top aide of former Islamic State leader

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Iraq's Kurdish Regional Security Council announces arrest of top aide of former Islamic State leader

The Kurdish Regional Security Council announced in a statement on Friday that it captured a senior Islamic State figure, Socrates Khalil.

Khalil was known to be a confidant of the late Islamic State leader, Abu Bakr al-Baghdadi.

“After spending five years in Turkey, Khalil returned to Kurdistan with a forged passport and was swiftly apprehended,” the statement said.

Khalil made bombs for the Islamic State and was entrusted by al-Baghdadi with various major operations, the statement added, saying that he was instrumental in the 2014 Islamic State takeover of Mosul, and participated in many battles against Iraqi forces and the Peshmerga forces.

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UN experts say South Sudan is close to securing a $13 billion oil-backed loan from a UAE company

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UN experts say South Sudan is close to securing a $13 billion oil-backed loan from a UAE company

U.N. experts say South Sudan is close to securing a $13 billion loan from a company in the United Arab Emirates, despite the oil-rich country’s difficulties in managing debts backed by its oil reserves.

The panel of experts said in a report to the U.N. Security Council that loan documents it has seen indicate the deal with the company, Hamad Bin Khalifa Department of Projects, would be South Sudan’s largest-ever oil-backed loan.

SOUTH SUDAN MEDIATION TALKS LAUNCHED IN KENYA WITH A HOPE OF ENDING CONFLICT

The experts, who monitor an arms embargo against South Sudan, said in the oil section of the report obtained by The Associated Press this week that “servicing this loan would likely tie up most of South Sudan’s revenue (for) many years, depending on oil prices.”

U.N. experts say South Sudan is close to securing a $13 billion loan from a company in the United Arab Emirates, despite the oil-rich country’s difficulties in managing debts backed by its oil reserves. (Photo by TIZIANA FABI/AFP via Getty Images)

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Hamad Bin Khalifa Department of Projects, registered in Dubai, has no listed phone number and its website isn’t working. An email address associated with the company bounced back. The UAE Mission to the United Nations declined to comment, saying Hamad is a private company.

South Sudan gained independence from Sudan in 2011 following decades of civil war that cost million of lives, and oil is the backbone of the young nation’s economy.

Soon after independence, South Sudan fought its own civil war from 2013 to 2018, when rivals President Salva Kiir and Vice President Riek Machar signed a power-sharing agreement and formed a coalition government. South Sudan is under pressure from the United States and other nations to more quickly implement the 2018 peace deal that ended the civil war and prepare for elections.

According to the U.S. Energy Information Administration’s latest update, South Sudan produced an average of about 149,000 barrels of liquid fuels per day in 2023. The landlocked country uses Sudan’s pipelines to transfer its oil to Port Sudan for shipment to global markets in an agreement with the Sudanese government, which pockets $23 per barrel as transit fees for the oil exports.

South Sudanese Information Minister Michael Makuei Lueth told reporters in February that outside factors, including the civil war still raging in Sudan, have hurt South Sudan’s oil exports. He also said oil wells, which were water-logged by heavy floods during the past rainy season, weren’t yet fully operational.

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The section on oil in the experts report said documents for the loan from the UAE company, signed between December and February by South Sudan’s minister of finance, indicate the loan is split into tranches.

According to the documents, around 70% of the loan is to be allocated to infrastructure projects, with the first payment in excess of $5 billion, the panel said. Following a three-year grace period, “the loan will be secured against the delivery of crude oil for a period of up to 17 years.”

The panel of experts raised serious questions about South Sudan’s oil-based debts.

South Sudan lost a case in the International Center for Settlement of Investment Disputes stemming from a $700 million loan it received from Qatar National Bank in 2012.

When the panel wrote its report, the tribunal had not reached a decision on how much the government would have to pay, but The Sudan Tribune reported Sunday that South Sudan has been ordered to pay more than $1 billion.

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The panel of experts said it has also confirmed that the government owes $151.97 million to the Eastern and Southern African Trade and Development Bank stemming from a previous oil-related deal.

South Sudan was supposed to hold elections before February 2023, but that timetable was pushed back last August to December 2024.

In early April, South Sudan’s president warned lawmakers “not to cling to power just weeks after his former rival turned deputy proposed a further postponement of elections.

The panel of experts said would be “a significant milestone” and warned that the country’s leaders are running short of time “to ensure divergent expectations do not fuel further tensions and strife.”

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The experts also noted South Sudan’s humanitarian crisis. in which an estimated 9 million of the country’s 12.5 million people need protection and humanitarian assistance, according to the U.N. The country has also seen an increase in the number of refugees fleeing the war in neighboring Sudan, further complicating humanitarian assistance to those affected by South Sudan’s internal conflict.

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India’s biggest election prize: Can the Gandhi family survive Modi?

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India’s biggest election prize: Can the Gandhi family survive Modi?

Amethi/Rae Bareli, India Irfan*, a tea stall owner, is convinced that change is afoot.

“There has not been much traffic on this road from Rae Bareli to Amethi ever since the Congress lost power in 2014,” he says, referring to two towns and a party that for decades have been synonymous with one family – the Nehru-Gandhis, or as they are more commonly known, the Gandhis.

The first family of Indian politics has ruled the country for almost half of its journey since independence in 1947, with three generations of prime ministers: Jawaharlal Nehru, his daughter Indira Gandhi, and grandson Rajiv Gandhi. And through ups and downs, when the Congress has been in power and out of it, Amethi and Rae Bareli, separated by 62km (38 miles), have for the most part stood by the family. They’ve served as safe constituencies for India’s grand old party in the northern Indian state of Uttar Pradesh, which is India’s largest electoral prize: with 80 seats out of the nation’s total of 543 in the lower house of parliament.

In 2019, that tradition received a dramatic jolt when the Congress leader Rahul Gandhi – son of Rajiv – lost Amethi by 55,000 votes to Smriti Irani, a feisty minister in Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) government, which has been in power nationally since 2014. Rahul’s mother and former Congress chief, Sonia Gandhi, retained Rae Bareli for the party, the only seat it won in Uttar Pradesh as the BJP swept the nation, winning 303 seats overall.

Now, five years later, the towns are a tense microcosm of the national battle between the BJP and opposition Congress; between Modi and the Gandhis. Rahul is replacing his 77-year-old mother from Rae Bareli this time. BJP’s Irani is seeking reelection from Amethi. Each of them is expected to face tough competition from the other’s party. Amethi and Rae Bareli vote on May 20 in India’s giant election.

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At stake are more than two seats: If the BJP wins Rae Bareli and retains Amethi, it will effectively have wiped out the Gandhi family and the Congress from Uttar Pradesh. Conversely, say opposition leaders, a Congress win in both seats could seed anti-BJP momentum in a state that often decides who rules nationally.

Irfan, from his vantage point of Tiloi town near Amethi and Rae Bareli, believes the political winds are blowing in the direction of the Congress. “Storm is building in both the cities, which will impact the entire state,” he says.

Yet, storms can be unpredictable – and Amethi and Rae Bareli know that.

A supporter of India’s Congress party wearing an outfit with portraits of former Indian Prime Ministers Indira Gandhi, top, and Rajiv Gandhi, waves to the camera at an election campaign rally addressed by Rahul Gandhi in Thane, on the outskirts of Mumbai, India, on March 6, 2014 [File: Rajanish Kakade/AP Photo]

Boost for the opposition?

In a video posted by the Congress party on social platforms, Rahul and his mother Sonia are seen leafing through old photos of the family visiting and contesting from Amethi and Rae Bareli, as they reflect on their family’s old association with the towns.

It is a decades-old bond. Feroze Gandhi, Indira’s husband and Rahul’s grandfather, won Rae Bareli in 1952 – independent India’s first election. Indira and Sonia won this seat subsequently, their stints interspersed by terms when their loyalists were nominated to contest from the town instead.

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Only thrice has the Congress lost Rae Bareli. In 1977, a national opposition coalition toppled Indira’s government to come to power amid a wave of anger against the Congress over its imposition of a state of national emergency in 1975, when civil liberties were suspended and thousands of its political opponents were arrested. In 1996 and 1998, when the BJP was rising nationally and first came to power, it defeated the Congress here – though the Gandhi family was not in the contest on those occasions.

In Amethi, Indira’s elder son Feroze Gandhi lost the 1977 election but won in 1980. The Congress lost only once since then, in 1998, before Irani’s upset in 2019. Sonia and Rahul have both won from Amethi.

After his loss in 2019, many pundits had wondered whether Rahul would ever contest from the family pocket boroughs – or even from Uttar Pradesh – again. He had won from Wayanad in the southern state of Kerala in 2019 and contested from there again this time.

The Congress party insiders say he was unconvinced about contesting from a second seat this time, but was eventually swayed by pressure from Sonia, who was opposed to giving up the family’s bastions without a fight. Rahul’s sister Priyanka, who is now also a leader of Congress, decided against contesting.

With Rahul contesting from Rae Bareli, a longtime family friend Kishori Lal Sharma is competing against Irani from Amethi. It’s a scenario that could work for the opposition, say some of its leaders. In the days before the Congress decided on its candidates for these seats, Ameeque Jamei, a national spokesperson for the Samajwadi Party – the Congress’s biggest ally in Uttar Pradesh – had told Al Jazeera that if Rahul or Priyanka contested, the “opposition fight against the BJP will gain greater meaning”. He predicted that the Congress-led INDIA alliance that is challenging the BJP nationally could win up to 20 of Uttar Pradesh’s 80 seats.

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That is easier said than done. Rahul faces a formidable challenger in the BJP’s Dinesh Pratap Singh, who gave Sonia a tough fight in 2019, cutting her winning margin substantially. Singh has been unsparing in his criticism of how the Gandhis treat their bloodline. The party and family rarely even mention Feroze Gandhi, Rahul’s grandfather, whose grave is 100km (60 miles) from Rae Bareli.

“A person who cannot be that of his grandfather, how can he be yours,” says Singh.

Vice President of India’s ruling Congress party Rahul Gandhi, second right, holds a handful of flower petals to throw back at supporters, with his sister Priyanka Vadra seated by his side as he arrives to file his nomination for the ongoing general elections in Amethi, in the northern Indian state of Uttar Pradesh, Saturday, April 12, 2014. Gandhi, heir to the country's Nehru-Gandhi political dynasty, is leading the struggling party's campaign in the general election. The multiphase voting across the country runs until May 12, with results for the 543-seat lower house of parliament announced May 16. (AP Photo/ Rajesh Kumar Singh)
Rahul Gandhi, right, and sister Priyanka campaigning in Amethi, Uttar Pradesh, ahead of the 2014 national election [Rajesh Kumar Singh/AP Photo]

Barbershop politics

On the ground, Rahul and Priyanka are barnstorming the otherwise sleepy cities of Rae Bareli and Amethi, in their own ways.

Recently, Rahul slipped into a local barbershop to get his beard trimmed. His videos of sitting in the barbershop went viral. Priyanka divides time between the two towns, holding road shows and corner meetings.

The Congress has also brought in other heavyweight leaders to strengthen its campaigns here with their experience and political guile. At Rae Bareli’s Shalimar Guest House, Bhupesh Baghel, the former chief minister of the central state of Chhattisgarh, is marshalling supporters. “Rahul has a lot of support in Rae Bareli. So, I don’t have to do very much,” he says.

Ashok Gehlot, the former chief minister of Rajasthan, is handling the Congress campaign in Amethi against Smriti Irani, who has doubled down on her accusations that the Gandhi family neglected the town and Rae Bareli for decades despite winning from there.

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The Congress is counting on the support of two key voting blocs. Muslims constitute 22 percent of Uttar Pradesh’s population. A Muslim leader from Amethi, Muhammad Alam, said many from his community could have considered voting for the BJP, but Modi’s recent attacks – including suggestions that the Congress would take Hindu wealth and give it to Muslims – had changed their minds.

Gautam Rane, a Dalit activist in Uttar Pradesh’s capital, Lucknow, says sections of the community, which sits at the bottom of India’s complex caste hierarchy, are also shifting towards the Congress. The community has traditionally backed the regional Bahujan Samaj Party in the state. The Congress has used stray comments by some BJP leaders to suggest that the party wants to change the constitution and take away caste-based affirmative action benefits from the Dalits – a charge that the BJP has denied.

“This is Rahul Gandhi’s elections,” Rane says. “No one [else] matters.”

* Name changed to protect identity

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