By Ginggay Hontiveros-Malvar, Chief Reputation and Sustainability Officer, Aboitiz Group and President, Aboitiz Foundation
This article was originally published on the author’s Tribune.net column ‘On the G(ood) Side’.
The UN Climate Change Conference (COP29) in Baku, Azerbaijan ended with a mix of progress and disappointment. While there were notable advancements, the overarching theme was a sense of missed opportunity for developed nations to take the lead in addressing the global climate crisis.
One of the most significant outcomes of COP29 was the operationalization of the Loss and Damage Fund (LDF), a crucial step towards addressing the financial needs of vulnerable countries impacted by climate-induced disasters. This fund, a hard-fought victory for developing nations, could provide critical support to the Philippines, which has experienced numerous typhoons and other extreme weather events in recent years.
As the host of the LDF’s fourth board meeting next month, the country is well-positioned to shape its implementation and ensure that it effectively addresses the needs of vulnerable nations. By hosting this meeting, the Philippines can showcase its leadership in climate action and demonstrate its commitment to supporting communities affected by climate change.
The LDF milestone, however, has been overshadowed by the pledge of developed countries to provide USD300 billion in climate-related financing per year until 2035. While the New Collective Quantified Goal on Climate Finance represents a three-fold increase from the previous commitment of USD100 billion, it falls significantly short of the USD1 trillion a year that the Independent High Level Expert Group on Climate Finance say developing nations need to boost their resiliency to climate change.
As a climate-vulnerable nation, the Philippines stands to be impacted by the financing shortfall. The country’s coastal communities, agriculture sector, and infrastructure are all at risk from rising sea levels, extreme weather events, and other climate-related challenges. To effectively address these threats, the country needs substantial investments in climate adaptation and mitigation measures.
[The loss and damage fund], a hard-fought victory for developing nations, could provide critical support to the Philippines, which has experienced numerous typhoons and other extreme weather events in recent years.
While the USD300 billion annual target could also be considered a step forward, the financing method should also be scrutinized. Loans pose a burden to developing nations since they’re often tied to stringent conditions and high interest rates. This, in turn, perpetuates a cycle of debt and hinders their ability to address climate change. There’s a growing call among climate advocates for financing to be provided primarily in the form of grants to ensure that vulnerable countries can allocate resources directly to climate action without additional financial strain.
The Philippine delegation at COP29 should be lauded for their efforts to secure a more equitable climate finance deal. However, the road ahead remains challenging. Maintaining a strong focus on climate action and engaging with stakeholders at all levels is crucial to create opportunities for collaboration and innovation.
Climate change is a global challenge that needs collective action. The Philippines can amplify its voice on the global stage by working with other vulnerable nations in pushing for a fairer share of climate financing and responsive climate action. In the meantime, the government could prioritize the implementation of policies that promote sustainable development and climate resilience.
The private sector can contribute to these efforts by embracing sustainable business practices and investing in innovative, climate-friendly technologies and products. There’s also space for collaboration with the government in implementing climate change initiatives such as reforestation, clean energy projects and disaster risk reduction.
With a shared understanding of the challenges and opportunities presented by climate change, we can work together towards building a sustainable and resilient future for the Philippines.
