Jakarta, October 31, 2024 – The need to keep global temperature increases to no more than 1.5 degrees also brings significant financial needs. The results of the First Global Stocktake show that the current climate commitments of countries in the world as stated in the Nationally Determined Contributions (NDC) will still cause the earth to experience a temperature increase of 2.2 to 2.8 degrees Celsius by 2100. To keep the rate of global temperature increase at 1.5 degrees, countries with emerging economies such as the Southeast Asian region need to increase climate ambition and ensure adequate funding.
Arief Rosadi, Manager of the Climate and Energy Diplomacy Program at the Institute for Essential Services Reform (IESR), said that there is a funding gap of USD 330 billion.
“Asia Pacific countries can take a bigger role in mobilizing global climate funding,” he said.
IESR Economic and Financial Analyst, Putra Maswan, the annual climate funding needs continue to increase from year to year reaching USD 9 trillion in 2030. This funding need will increase significantly in the 2031-2050 period reaching USD 10 trillion.
“This projection of climate funding needs shows that climate funding must continue to increase up to five times per year, to ensure that climate change mitigation actions can be carried out. Delaying climate action will result in higher cost requirements,” said Putra.
Prabin Man Singh, Programme and Finance Director of the Prakriti Resource Center, said that countries with significantly growing economies, India is the largest contributor to energy transition and climate funding in the South Asia region, at 75 percent followed by Bangladesh at 12 percent.
“The South Asia region is experiencing challenges in transitioning, one of which is the frequent recurrent climate disasters. This causes infrastructure damage and the need for high loss and damage funding. In addition, South Asian countries rely on international loans to carry out their climate actions,” said Prabin.
Liangyi Chang, Asia Managing Director of 350.org highlighted the global capacity to meet global funding needs that are often below target.
“Currently, the climate funding needs in the global south are 2.44 trillion dollars, so asking for 1 trillion in global funding is actually not enough. However, this fund can be a good incentive for climate finance,” said Liangyi.
