GENEVA, Switzerland – The International Trade Centre (ITC) is committed to bringing small business into the global efforts against climate change. Be that for adaptation or mitigation against the increasingly unpredictable weather and its impact across communities.
The next UN climate talks, known as COP29, take place in mid-November in Baku, Azerbaijan. ITC will bring representatives of micro, small and medium enterprises (MSMEs) to enhance awareness on what this hugely important part of the global economy can contribute to climate action, and what realities hinder a sustainable transition.
These are the key topics that ITC will follow closely during COP29:
Climate finance
The existing climate finance commitment by countries, of $100 billion annually, will end next year. Therefore, at COP29, the new target is expected to be the main focus of the climate talks.
The consensus is that a new but realistic finance commitment is key to support a transition to low emissions in developing countries and to build the steps for more resilience against unpredictable climates.
The World Resources Institute estimates that developing countries need at least $5.3 trillion to implement national climate plans that will help reach the goal of keeping global warming at 1.5 C by 2030, as per the Paris Agreement agreed between nations in 2016.
The UN secretary-general issued a report that states current policies are leading towards a 3°C rise in temperatures. , therefore a drastic 42 percent reduction in emissions by 2030 is necessary to limit warming to 1.5°C.
The onus will be on the richer countries to provide substantial support for an enhanced target, and this will be at the centre of the negotiations in Baku. The figure will be scrutinized closely by all parties.
The COP29 presidency is also supporting the Baku Initiative for Climate Finance, Investment, and Trade Dialogue. This process aims to bridge the gap between increased climate ambitions and existing sustainable development efforts, by consolidating trade and investment policies and climate financing through an integrated national financing framework.
The Dialogue is led by UN Trade and Development (UNCTAD) and the United Nations Development Programme, in cooperation with the COP 29 Presidency and ITC. The goal is to become a platform to gather feedback and input from parties and observers and non-Party stakeholders, including MSMEs, in an inclusive manner.
A new acronym – NCQG – will become widely known at COP29, as the conference of the parties will be set out to agree on a New Collective Goal on Climate Finance.
Climate finance is at the heart of what small entrepreneurs seek at COP29. ITC took a delegation of MSMEs to COP28 who widely told delegates in Dubai that this was the most pressing subject for them when it comes to climate actions.
This year ITC will continue to raise their voice and undertake effort to include these views towards a Just Transition.
National Determined Contributions (NDCs)
Countries are working towards determining their National Determined Contributions, which will reveal the level of ambition of the individual climate plans that can significantly help reach the targets of the Paris Agreement.
The new NDCs will not be announced in Baku, but they will be part of the negotiations, and this will signal the direction of travel of this crucial aspect of the global efforts.
Also, the countries who adhered to the Paris Agreement agreed to publish biannual transparency reports, under the Enhanced Transparency Framework. The deadline for the first tranche of reports is due before the end of 2024. Therefore, some of the progress by countries could be revealed in Baku. The results will also very likely drive the negotiations one way or another, in terms of setting the new NDCs.
The subject of NDCs, is a key priority of UN Secretary General Antonio Guterres. He has called on all UN agencies, like ITC, to increase its support to countries developing these new targets.
ITC has started to develop guidelines on how to include MSMEs and address trade in the NDCs. Small businesses contribute significantly to value creation, employment, innovation and sustainable livelihoods. Working with small businesses on mitigation and adaptation can achieve substantial emission reductions and increase resilience to climate hazards. This can promote economic and environmental agendas, both nationally and multilaterally.
Other key topics to keep an eye on at COP29
Further mitigation work programme, discussed by the parties, include,
- Carbon Crediting Mechanism – article 6.4. How will the mechanism be implemented, in order to help fund NDCs?
- Operationalization of Loss and Damage Fund – how will it work, and be set up?
- Global Goal on Adaptation – what will be the clear metrics targets to foster adaptation?
- How will the implementation of Santiago Network of Technical Assistancefor developing countries be decided, particularly to those vulnerable to climate change?
