Civil society asks G20 for climate financing – 02/28/2024 – Environment

Find ways to leverage the energy transition in developing countries, develop mechanisms for paying for services provided by nature and ensure that a reform of the financial system takes social aspects into account.

These were some of the main themes raised by civil society entities that met at the Brazilian Climate Finance Forum this Monday (26) and Tuesday (27) in São Paulo.

The event, which brought debates around how to bear the costs of carbon emissions mitigation and climate adaptation measures, is part of the G20 Social’s official agenda and preceded the meeting of the group’s finance ministers and central bank presidents, started this Wednesday (28) also in the capital of São Paulo.

Especially this year, the result of the G20 could influence the negotiations at the UN climate conference, which takes place in November, in Baku, Azerbaijan. This is because COP29 will define a new amount to be allocated by rich countries to climate financing in developing nations.

The topic is delicate, it has been going on for years and there may be rough edges to be ironed out the following year, when the climate summit takes place in Brazil, in Belém.

Created by seven non-governmental organizations, the Brazilian Climate Finance Forum was attended by members of the federal government, IDB (Inter-American Development Bank), UN (United Nations), Brazilian and foreign businesspeople, researchers and activists.

Former Secretary of Economic Development, Science and Technology of the State of São Paulo Patricia Ellen, president of the AYA Institute, states that the more active participation of civil society itself is a demand presented at the forum.

“[Muitas organizações] highlighted the importance of continuing this work. There is work during the G20 and post-G20, including with the Brazilian government and international organizations, to keep this space open for organizations and civil society”, he says.

Maria Netto, executive director of iCS (Instituto Clima e Sociedade), also highlights that the initiative is especially important in the context of the G20. “Often these G20 dialogues are very closed, they do not allow the collaboration of observers”, she explains, adding that this can be exemplified by the discussions on the reform of the international financial system that took place during the meeting.

“Okay, we want to bring more resources to, say, leverage private investment for the climate, but how do we ensure that this also has a social impact? How do we have a better understanding of how the public and private work together? How [fazer com] that this reform of the financial system has a more revolutionary outlook?”

The topic is one of the priorities of the Brazilian presidency at the head of the group, which brings together the 19 main economies in the world, in addition to the European Union and, starting this year, the African Union.

Another issue that stood out was the implementation of the Ecological Transformation Plan, launched last year by the Ministry of Finance in partnership with the Ministry of Environment and Climate Change, which aims to promote sustainable development and reduce inequalities.

Even though the idea is to mobilize governments, philanthropy, the private sector and multilateral actors, the plan has not yet been properly systematized, with deadlines and goals.

“We know that we will obviously need public resources to leverage much greater investment from the private sector”, says Ilona Szabó, president of the Igarapé Institute and columnist for Sheet.

She assesses that a Brazilian presidency of the G20 that would be considered successful would also include structuring regulations and putting the plan’s actions into practice. “[Sucesso é] have a credible plan, with entry points for this capital leverage, specifically. And I would say that we are also putting nature on the agenda, because it is not on companies’ balance sheets.”

The expert states that it is necessary to define a valuation and remuneration for ecosystem services — that is, the services provided by conserved nature, such as pollination.

“We know that more than 50% of global GDP depends on ecosystem services”, he states. “You have to start understanding that it has a cost and what you are doing to give back.”

Maria Netto adds that Brazil can use this opportunity to seek consensus around issues relevant to combating the climate crisis.

“The G20 can come out with an agreement with some important messages on agendas such as the energy transition, recognition of the importance of nature-based solutions and moving forward and having some clear recommendations for reforming the financial system”, he analyzes.