UN panel report underplays needs of developing nations: Experts

The United Nations Climate Convention’s Standing Committee on Finance has estimated that the annualized cost, across different time frames ending by 2030, of implementing “costed needs” under nationally determined contributions (NDCs) by 98 developing countries is in the range of $455–584 billion per year.

Developing countries have submitted to the UN that the new collective quantified goal (a financial target that will support developing countries’ climate actions after 2025) should be in trillions, in keeping with real needs of developing nations.

Experts have taken exception to the standing committee report, which was released on September 10.

“NDCs from 142 Parties contain a total of 5,760 needs. Of these, 2,753 (48%) were costed needs reported by 98 Parties, amounting to $5.036-6.876 trillion. Given these needs represent the largest number of Parties reporting costed needs, they are then most representative of this metric. It is understood that the costed needs presented in NDCs do not reflect the entirety of needs across developing country Parties and regions... the starting points for costed needs out to 2030 in NDCs vary significantly with some indicating a 2015–2030 timeframe, and others a 2020-2030 timeframe,” the report states.

It further adds that “therefore, an annualized cost estimate across different time frames ending by 2030 of implementing these costed needs by 98 countries are in the range of USD 455–584 billion per year.”

“The latest UN report falls short of capturing the full financial realities that developing countries face. The transition to renewable energy and the rising costs of climate impacts now require trillions annually. Yet, due to gaps in data and disorganised information, the report presents figures that do not fully account for the needs of all developing nations, particularly for a just transition away from fossil fuels, which demands economic diversification and the creation of green jobs on an unprecedented level,” said Harjeet Singh, Climate Activist and Global Engagement Director for the Fossil Fuel Non-Proliferation Treaty Initiative.

“Critically, the financial estimates for adaptation and addressing loss and damage fail to reflect the devastating realities on the ground. It’s time for the new finance goal to be agreed at COP29 to recognise these urgent needs, and for wealthy nations to take responsibility and provide finance at the necessary scale to confront this escalating global crisis.”