Skip to content Skip to Search
Skip navigation

$100bn ‘a drop in the ocean’ for climate action, says Cop27 host

After criticism of oil producers at Cop27, Egypt's environment minister Yasmine Fouad said all stakeholders need to be part of the conversation Supplied
After criticism of oil producers at Cop27, Egypt's environment minister Yasmine Fouad said all stakeholders need to be part of the conversation
  • Egypt’s Cop27 officials keep up pressure to finance climate action
  • Environment minister welcomes ongoing discussions with oil producers

The world still urgently needs to address the “elephant in the room” in the climate crisis, which is financing action for vulnerable developing countries, officials from Cop27 host nation Egypt said.

In 2020 combined adaptation and mitigation finance flows fell at least $17 billion short of the $100 billion pledged annually to developing countries, according to the United Nations Environment Programme’s (UNEP) Adaptation Gap Report 2022.

Meanwhile, estimated annual adaptation needs are between $160 billion to $340 billion by the end of the decade, and up to $565 billion by 2050.

UNEP said a significant scale-up is needed to meet the goal of doubling 2019 finance flows by 2025.

Mahmoud Mohieldin, climate change champion for Cop27 and special envoy on Financing 2030 Agenda for Sustainable Development, United Nations, told a panel at the Atlantic Council Global Energy Forum this weekend that the climate summit in Egypt’s Sharm El Sheikh last year saw three major accomplishments.

These were protecting the Paris agreement and the ambitions of Glasgow, including the 1.5 degrees commitment; practical suggestions for adaptation in partnership with the private sector; and the establishment of a Loss and Damage Fund. 

“What’s common between the three is the elephant in the room: finance,” he said.

“Without finance you cannot really have any progress in mitigation. Adaptation will be an interesting academic notion. And loss and damage is all about finance. It’s easy to talk about the $100 billion, but we know now it’s a drop in the ocean when it comes to the requirements of finance. 

“It’s no more than 3 percent of the requirements of total finance for when it comes to developing economies and emerging markets, even if you put advanced economies and China aside. So we need to have serious money.”

Yasmine Fouad, minister of environment and ministerial coordinator and climate envoy for Cop27, said that more needs to be done to further look into the implementation and actual disbursement of the Loss and Damage Fund.

The fund aims to provide financial assistance to the countries most impacted by the effects of climate change, including rising sea levels, prolonged heatwaves, and extreme events such as bushfires, species extinction and crop failures.

Representatives from 24 states will work together over the course of this year to decide what form the fund should take, which countries should contribute, and where and how the money should be distributed.

Some environmentalists at Cop27 alleged fossil fuel producers were diluting emission reduction targets. Fouad’s response to the criticism underlined that all stakeholders need to be at the table.

“Oil and gas is part of the problem, like any other industry, and they have to be present in order to propose what they can do,” she said. 

“If we are always saying that the Cops should be inclusive because the crisis affects us all then everyone has to be at the table. The heavy industries, the cement industry, or the fertiliser industry – why shouldn’t they also be criticised for being at the table?”.

The UAE, a major Opec oil exporter, will be the second Arab state to host the climate summit after Egypt in 2022.

Latest articles

ADQ's holdings include Abu Dhabi National Energy Company (Taqa) and are worth almost $200 billion

ADQ: how Abu Dhabi’s ‘baby’ fund is finding its feet

Abu Dhabi sovereign wealth fund ADQ may be the younger, smaller sibling of ADIA and Mubadala but there are no signs of an inferiority complex as it executes billion-dollar deals at home and overseas. Most notable was the $35 billion agreement signed with the Egyptian government in February this year to develop Ras El Hekma, […]

Suriname oil

QatarEnergies buys into Suriname oil expansion

The state-owned giant QatarEnergy has signed a deal with US oil company Chevron to acquire a 20 percent interest in a production-sharing contract for an offshore concession in the South American country of Suriname. Chevron will keep a 40 percent interest in Surname’s block 5, as will Paradise Oil, an affiliate of Suriname’s national oil […]

Rakbank

Rakbank plans first bond to fund social projects

The National Bank of Ras Al Khaimah (Rakbank) is planning to launch its first social bond issuance, a news report has said. The Abu Dhabi-listed bank is seeking bids for the five-year benchmark-sized dollar-denominated bond, Reuters reported. The initial price was set at 170 basis points over US Treasuries, with the final pricing expected on confirmed […]

The proposed sharia standard 62, which aims to transition the industry towards asset-backed sukuk, will not affect 2024 issuance, says S&P

Sharia standard 62 may disrupt sukuk market, says S&P

Global sukuk issuances are likely to suffer next year if the proposed standard 62 sukuk changes to sharia guidelines are implemented, according to the American credit rating agency S&P in a new report. “Adopting Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standard 62 guidelines as they have been presented could disrupt the market,” […]