06-11-2024 09:36

Biodiversity meeting among nations ended with mixed results

The COP16 meeting ended 16 hours over time when it became obvious that many delegates had left and there no longer was quorum at the meeting. Nordea’s biodiversity experts Anna-Karin Modin-Edman and Jan Wärnbäck reflect on the outcome of the meeting and what to expect from COP 29 where climate finance will be high on the agenda.

Regarding the three big topics covering ambition levels, participation and financing, the results were very mixed at the 16th Conference of the Parties of the Convention on Biological Diversity, which is the official name for COP16.

Ambitions

Again several of the commitments made under the Global Biodiversity Framework in 2022 fell short as only 44 out of 196 nations submitted National Biodiversity Strategy and Action Plans (NBSAPs) as agreed. Several developing countries did not submit. The participants also failed to reach an agreement on systems for planning, monitoring, reporting and reviewing of targets linked to the framework. The negotiations stalled on an indicator on pesticides.

Participation

After weeks of negotiation, a permanent so-called Subsidiary Body (SBI) for indigenous people and local communities was established. This was a success in terms of strengthened participation and giving formal voice and decision-making power to groups that often are directly affected by loss of nature. The objectives of the COP contain important language on the need to respect, preserve and maintain the knowledge, innovations and practices of indigenous peoples and local communities, so this was a leap forward.

Financing

Time ran out before an agreement could be reached, meaning that the issue of a new strategy for resource mobilisation will have to be continuedly discussed at future meetings. One of the goals of the Global Biodiversity Framework is to help secure USD 200 billion annually by 2030 from all sources to support biodiversity initiatives worldwide and another is the redirection by 2030 of USD 500 billion per year in subsidies that harm biodiversity. There is no clarity as to how the parties view private sector finance to be included.

It is important not to be discouraged despite the lack of deliveries on important aspects. It is a transformation journey and some parts, especially issues on finance, are more challenging. From a Nordea perspective it will be interesting to follow the increased ambitions among countries that did not submit their NBSAPs as well as increased clarity on the resource mobilisation strategy, where Nordea is particularly keen to understand how to include and scale private sector financing. We find the interest and engagement from the private sector at the COP16 especially encouraging, including the financial sector contributions, and we too will continue building our capacity to contribute.

What’s next?: The “Finance” COP

While the COP16 has ended, there are topics that will be debated in the space of COP29 – the “Climate COP” – as action on climate and nature goes hand in hand. COP29 will take place in Baku, Azerbaijan on 11-22 November, and we expect climate finance to take the a front seat.

For the first time in 15 years agreeing on a new climate finance goal will be at the top of the agenda earning COP29 its "Finance COP" title. The New Collective Quantified Goal (NCQG) on climate finance will be vital in mobilising finance to accelerate climate action in developing countries. The NCQG will replace the previous target of USD100 billion per year by 2020, a promise the developed countries only managed to deliver on in 2022. There will be a major task bridging the minimum that the developing countries will be willing to accept in a new deal, and the maximum that developed countries are willing to bring to the table. COP 29 will focus on mobilising private sector finance to support climate action in developing countries.

Another financing initiative to be discussed is the new Climate Finance Action Fund (CFAF), announced in July by the COP29 Presidency. It aims to draw on voluntary contributions from fossil fuel-producing countries and companies to support developing countries' climate projects. The funds success depends on the mobilisation of significant, and ongoing, contributions for years to come.

Finally, there will be a call to countries to update their national climate commitments ahead of COP30.