Policy Updates

On November 22, 2024, USAID announced a number of new commitments and a progress report on its climate work at COP29.

USAID announced a pledge of US$54 million for blended finance partnerships to provide catalytic investments for climate finance vehicles and investment funds in coastal and marine natural capital. The blended finance package also included US$28 million for Columbia Invest for Climate and US$6 million for a green partnership in Southeast Asia. Further investments support climate-resilience and reduced emissions in agriculture and food systems in Africa.

Adding to the investments in the US president's Emergency Plan for Adaptation and Resilience, USAID invested a total of US$83 million for early warning systems in 30 countries.

Other investments included:

• US$12 million for the Climate Smart and Disaster Ready program in regions across the globe;
• Efforts to provide more green energy transitions in Asia;
• A joint USAID and NASA investment in Central America to help manage and prepare for climate risks; and
• Power Africa will contribute US$410 million to the Africa funding window toward green value chains; and
• USAID committed US$11 million to champion women decision-makers in responding to climate crises.

On November 21, 2024, the annual Pacific Aid Map published by the Lowy Institute indicated Australia has remained the major donor to the Pacific.

The 2024 Pacific Aid map provided complete data from 2008 to 2022, and indicated that the second major donor was China, overtaking the US. Other Western donors had reduced their ODA budgets to the Pacific in part due to cutting budgets and redirecting funding to Ukraine.

Australia provided AUD2.2 billion (US$1.5 billion) in 2022, with China providing US$256 million. The map indicated that China was continuing to revise its approach, including shifting towards grants and away from lending programs.

In general, loans to the Pacific in 2022 accounted for 40% of assistance, compared to only 12% in 2009. This was in part due to the increased focus on infrastructure in the region.

On November 19, 2024, Australian Minister for Climate Change and Energy Chris Bowen announced a AUD50 million (US$33 million) contribution to the Fund for Responding to Loss and Damage for countries affected by climate change.

Bowen noted that support for Pacific Island countries was a priority given the existential threat they face from climate change. Other donors contributing to the Fund included Germany, Canada, the US, and the UK as well is the UAE.

The announcement was made jointly with the Minister for Foreign Affairs Penny Wong.

On November 19, 2024, South Korean President Yoon Suk Yeol pledged to increase its contribution to the IDA’s 21^st replenishment by 45% while attending the G20 Summit in Rio de Janeiro, Brazil.

The contribution amounts to US$604 million (KRW845.6 billion), a 45% increase from the IDA’s 20^th Replenishment.

The World Bank praised South Korea’s decision to increase its contribution and hoped that South Korea’s position as a key player in development finance would be further solidified through the December meetings.

Countries will gather in Seoul on December 5, 2024 to announce their contributions.

On November 19, 2024, Canadian Prime Minister Justin Trudeau concluded his participation at the G20 Leaders Summit where he announced over CAD68 million (US$49 million) in new investments to crack down on organized crime, drug smuggling, support climate action, and to protect women and girls.

Funding included:

• Nearly CAD24 million (US$17 million) to stop drug and human trafficking into Canada, increase collaboration with international security organizations, and enhance the capacities of airports in Latin America and the Caribbean to prevent the shipment of illicit drugs;
• Over CAD25 million (US$18 million) to help restore global biodiversity, support measures to alleviate malnutrition, work with farmers in climate-stressed regions, and enhance food security; and
• Over CAD19 million (US$14 million) to support women and girls in Latin America by preventing discrimination and violence, helping more women participate in conservation efforts and land and water resource management, and improving health services for at-risk women, including Indigenous women.

Trudeau also secured Canada’s participation in two key global partnerships - the Global Alliance Against Hunger and Poverty and the Global Clean Power Alliance. Throughout the Summit, the Prime Minister also participated in various G20 working sessions to advance progress on global peace and security, focusing on Ukraine and the Middle East.

On November 19, 2024, New Zealand, the UK, and the IISD joined the Netherlands’ founded international COFFIS at COP29.

The coalition was established in 2023 and is made up of 16 members. It focuses on increasing transparency on the use of fossil fuel, improving international agreements to enable the phase-out process, and supporting each other in national phase-out efforts. For the Netherlands, approximately half of what is classified as fossil fuel benefits – around EUR20 billion (US$22 billion) – has international origins, making national phase-outs challenging.

The IISD was designated as an organizational partner to support the coalition and coordinate knowledge-sharing among participant countries. The coalition will report again on its progress in 2025.

On November 19, 2024, Brazilian President Luiz Inácio Lula da Silva and French President Emmanuel Macron agreed to make the protection of Oceans a strategic joint priority during Macron's trip to Brazil.

The statement emphasized that Brazil will host COP30 on climate in November 2025, which coincides with the 33^rd anniversary of the adoption of the UNFCCC and the 10^th anniversary of the adoption of the Paris Agreement.

France in turn is co-hosting, with Costa Rica, the next UNOC in June 2025, in Nice. In response to the urgent challenges faced by oceans, the UNOC will be a summit for action based on concrete commitments and a consolidated roadmap for ocean protection. The Conference will result in the adoption of the Nice Action Plan for the ocean.

In order to achieve SDG 14 and implement the 2030 Agenda, France and Brazil, as strategic partners, expressed their commitment to launch a global movement for the ocean and climate within the G20, in preparation for the third UNOC in France and the COP30 in Belém. The objective is to develop a fair and sustainable blue economy enhancing the resilience of marine and coastal communities.

On November 19, 2024, South Korean President Yoon Suk Yeol pledged its role of serving as a green ladder for climate change by expanding green ODA at the G20 Summit in Rio de Janeiro.

Yoon announced South Korea’s contribution to overcoming the climate crisis and transitioning to clean energy at the 3^rd session of the G20 Summit under the theme of sustainable development and energy transition, proposing international cooperation.

He updated on Korea’s contribution of US$300 million to the Green Climate Fund pledged last September at the G20 Summit in India. He also reaffirmed his administration’s plan to contribute US$7 million to the UN Loss and Damage Fund for Developing Countries pledged in June at the Korea-Africa Summit in Seoul

While stressing the importance of the Carbon Free Energy Initiative, Yoon expressed a willingness to support climate-vulnerable countries by expanding its green ODA.

On November 19, 2024, UK Foreign Secretary David Lammy condemned Russia for vetoing a council resolution calling for an immediate end to hostilities in Sudan at the UN Security Council meeting.

A draft of the resolution prepared by the UK and Sierra Leone had called on both sides to immediately cease hostilities, and begin ceasefire discussions. Lamy described the Russian veto as a disgrace.

On November 19, 2024, Minister for Foreign Affairs Annalena Baerbock traveled to Baku to attend COP29 with Special Representative for International climate policy Jennifer Morgan.

Together with other countries, German Chancellor Scholz signed a statement of the country coalition High Ambition Coalition calling for an increase in international climate financing. The coalition demands increased ambition, yet financing models remain unclear.

The German position is weakened through the Traffic Light coalition break-down on November 6, 2024. Moreover, the German government will likely fail to meet its climate goals, including for international climate finance.