Climate and Development Ministerial: bridging trust and accelerating action for climate-vulnerable nations
Reflecting on the 2024 Climate and Development Ministerial process, UnaMay Gordon explains why such initiatives are essential for rallying global support for climate-vulnerable nations, particularly Small Island Developing States and least developed countries. Urgent, bold steps are needed to transform ambitions into concrete outcomes by fostering trust and accountability.
As countries approach COP29, with the aim of agreeing on a new climate finance goal that meets the 1.5°C target, the stakes for Small Island Developing States (SIDS) and the least developed countries (LDCs) couldn’t be higher. For these countries, securing sufficient, sustainable finance is not just an economic issue – it’s a matter of survival.
The first Global Stocktake at COP28 underscored the pressing need to increase climate finance significantly. Meeting these challenges will require trillions of dollars and a transformative shift in the global financial architecture. What we need now is 'business unusual'.
It’s not just about adequate financing; predictable, long-term, high-quality finance that addresses the specific needs of the most vulnerable is essential. The stark reality is that the US$100 billion annual climate finance target for developing countries, set for 2020, remains unmet. Of the $91 billion channelled, $63 billion was in loans, burdening already struggling economies.
The widening adaptation finance gap is alarming. According to UNEP's Adaptation Gap Report the adaptation finance gap is estimated at $194-$366 billion a year: the current estimated needs of developing countries are 10-18 times as much as the flows.
COP29 must offer a potential turning point. Nations must agree on the New Collective Quantified Goal on climate finance that will deliver equitably and effectively for vulnerable nations. This would represent the first meaningful step toward closing the adaptation finance gap.
Raising ambition beyond negotiation rooms
Ambition must be raised and efforts must not be confined to formal negotiations. Processes like the Climate and Development Ministerial (C&DM) play a crucial role in mobilising greater support for adaptation finance and ensuring that the needs of SIDS and LDCs remain front and centre.
Launched at COP26 in 2021, the C&DM was initiated to unite and support climate and development ministers to address the priorities of countries vulnerable to climate impacts. Facilitated by E3G, SouthSouthNorth and IIED, it has since evolved into a pivotal platform, bringing climate finance providers and climate-vulnerable countries together to collaborate on closing gaps in the current climate finance system.
In its first three years, the C&DM helped to bridge the priorities of climate-vulnerable nations into high-level political discussions. These efforts contributed to key outcomes, including the COP26 decision to double adaptation finance and build momentum around reporting commitments at COP27. The process also drew attention to fiscal challenges, leading to COP26 decisions advocating for greater use of Special Drawing Rights and climate-resilient debt suspension clauses.
2023 marked a pivotal moment for the C&DM process with the launch of the Coalition of Ambition on Adaptation Finance at COP28. This saw 13 countries and institutions signing up, eight of which are championing specific goals.
In 2024, efforts have focused on transitioning from vision to implementation. Discussions and technical dialogues (PDF), held at Wilton Park (PDF), the SB60 climate conference and during New York Climate Week at UNGA, reinforced a clear message: while progress has been made, systemic barriers persist and solutions must be scaled rapidly to address the urgent needs of vulnerable countries. Now, more than ever, we must move from envisioning the C&DM’s goals to delivering concrete, actionable outcomes.
The fourth C&DM, recently co-hosted by Azerbaijan, the UK and Vanuatu as part of this year’s Pre-COP, focused on the critical issue of adaptation finance, with leaders from SIDS, LDCs, donor countries and major climate finance institutions coming together to discuss what works and what doesn’t in the current finance architecture.
A consensus emerged on the need for urgent action; both the quantity and quality of finance must significantly increase for vulnerable countries to survive.
In particular, the most climate-vulnerable countries issued a clear and urgent call to shift from bold statements and promises to concrete action.
There is no more time to waste. All countries and institutions must work collectively to make tangible progress on the three goals of the C&DM. Stronger, more strategic collaboration among funding entities – at both the planning and implementation levels – was highlighted as crucial to scaling up adaptation finance in a meaningful and impactful way.
Evidence and best practices on adaptation finance
Last month saw the launch of the C&DM’s evidence report on best practices for accessing and delivering adaptation finance, offering insights from both fund providers and recipients: a perspective often overlooked in the current finance architecture. This was a major highlight and step forward.
The report featured seven in-depth case studies that showcased innovative approaches being tested in SIDS and LDCs. It underscored the importance of country-owned, programmatic approaches to adaptation finance, which address equity challenges faced by the most vulnerable nations.
The need for stronger collaboration across regional, international and local levels was emphasised to ensure the effective delivery of finance where it is most needed.
COP29 and beyond: a call to action
The progress made by the C&DM in 2024 marks a step forward, but there is much more to be done. With COP29 approaching, this is a call to action to the global community to rally behind the C&DM’s vision, ensuring that LDCs and SIDS receive the finance they need at scale to build climate resilience and secure their futures.
Indeed, building strong ambition through processes such as the C&DM can lead to tangible outcomes, foster trust and keep the critical issue of adaptation finance at the forefront of global political discussions. As we move towards COP29 and beyond, the C&DM will continue to occupy space alongside formal negotiations where ambitious nations and institutions can sit together as equals, engaging in honest dialogues and working collaboratively in an atmosphere of trust to reshape the adaptation finance landscape.
In the coming year, a monitoring framework will be developed to track progress against the three C&DM goals. A comprehensive toolkit for policymakers in LDCs and SIDS will also be created, providing guidelines for investment readiness and aligning with national adaptation plans, nationally determined contributions, and national biodiversity strategies and action plans.
It’s time to move from rhetoric to results.
With thanks to IIED's Anaa Hassan for contributions to this insight.
