Geneva, 30 October 2021 (TDI): With the release of the second part of the report, UNCTAD recommended a series of proposals. UNCTAD first stated that current funding is less than a quarter of the 2030 figure.
The report also warned that relying on private finance will not deliver to the countries that need it the most. The Secretary-General of UNCTAD, Rebeca Grynspan, issued an statement. Grynspan urged the Countries to reach the 100 billion pledge at the COP26, in Glasgow. She also stressed the need for a multilateral concerted reform effort, to align ambition, and action.
Grynspan mentioned that the reform effort also has the goal to ensure adequate funding for developing countries. That funding is to help them to adapt to the impacts of the climate change, that are getting worse. Finally, Grynspan remarked that climate change has no borders, so its necessary to have a multilateral strategy.
RECOMMENDATIONS TO REFORM OF THE REPORT
The first recommendation of the report to reform is that official development assistance commitments need to be met. UNCTAD mentioned that if the G7 countries had met the target in 2020; 155 billion would have been available.
The second one is that debt relief, and restructuring for developing countries should be in the agenda. UNCTAD mentions that the V20 group of climate-vulnerable countries would be ideal. Here the link between climate, and debt crises, highlight the need to reform the international debt system.
The third one is that multilateral development banks need additional capital. This is to fund climate adaptation through grants, and loans. The last recommendation is that the green bond markets are one way to help raise long-term financing. Then the report suggests that national trade policy play a complementary role in achieving climate goals. But also stated that poorly designed international trading rules will hinder a green transformation.
WTO TOOLS AND FINAL STATEMENT
UNCTAD also mentions that expanded policy space, with waivers, and peace clauses at WTO, can help. Those tools can aid developing countries, to develop capacities towards climate goals. UNCTAD warned that the pressure to liberalize trade in environmental goods, and services, will constrain developing countries. According to the report, developing countries will lose 15 billion in tariffs annually; if the approach is pursued.
UNCTAD cautioned that the Carbon Border Adjustment Mechanism to be harmful. This is because CBAM would compound the damage of climate change in developing countries. The reason is that it would undermine their export capacities, and making structural transformation more challenging.
Then the organization stated that critical green technologies should be classified as public goods. UNCTAD remarked the support to the transformation of intellectual property laws, and others, for developing countries. This could be done through WTO ministerial declaration on TRIPS, and climate change. UNCTAD explained that this could provide a basis for innovative mechanisms then. As this would also promote access to patent-protected critical green technologies.