The Global Climate Challenge
2024 is projected to be the hottest year on record, according to a report published by the UNFCCC during COP29. Alongside the intensifying threats of climate change, developing countries continue to grapple with persistent issues like poverty and underdevelopment. Achieving a successful and sustainable green transformation will require enhanced cooperation among the Global South, as emphasized by José Graziano Da Silva, United Nations Under-Secretary-General and Executive Director of the United Nations Office for Project Services (UNOPS).
China’s Role in Climate Governance
In recent years, China has taken a leading role in addressing climate challenges. A report titled China’s Actions on South-South Cooperation in Addressing Climate Change, published by the Belt and Road Initiative International Green Development Coalition on November 15, 2024, revealed that China has raised over 177 billion RMB to support developing countries in tackling climate-related issues. This underscores China’s leadership in climate governance and its steadfast commitment to the Paris Agreement.
China remains committed to the principle of Common But Differentiated Responsibilities (CBDR), emphasizing that developed countries must fulfill their obligations while China contributes its fair share. Aligning with the UAE consensus, China has pledged to support the global renewable energy transition by 2030, reaffirming its stance to shoulder its responsibilities while advocating for fairness in global climate action.
China’s Commitment to South-South Cooperation
During COP29, China’s Ministry of Ecology and Environment signed a Memorandum of Understanding (MoU) with Nigeria’s Ministry of Environment for the construction of the Lekki Low-Carbon Demonstration Zone. This initiative aims to address climate challenges in Nigeria and is one of fifty-three MoUs China has signed with 42 developing countries. These agreements have led to approximately 100 anti-climate change projects and over 300 related activities, benefiting over 10,000 people across 120+ developing countries.
Despite challenges to multilateralism and global climate governance, China’s efforts in low-carbon development set a precedent for tackling climate change while improving human well-being.
Energy Transformation and Technological Advancements
According to the China Energy Transition Outlook 2024, released during COP29, achieving China’s carbon neutrality target by 2060 will require over 100 trillion RMB in investments. By that time, electricity is projected to account for 60% of end-use energy demand, hydrogen for 12%, with wind and photovoltaic energy serving as the primary sources of energy. Technological advancements, particularly in bioenergy and computational power, are driving down green energy production costs.
China has already achieved an 80% reduction in the cost of generating photovoltaic electricity. In 2023 alone, China’s climate support for less developed regions, including the Asia-Pacific, Middle East, Far East, Africa and South America, helped prevent 8.1 million tons of carbon emissions.
Key Issues on the UNFCCC Climate Fund at COP29
The “New Collective Quantified Goal (NCQG)” dominated finance discussions at COP29 in Baku, with five critical issues highlighted:
- Nature of the NCQG: Developed countries have failed to meet their $100 billion annual climate assistance commitment and are now seeking contributions from wealthy developing nations, potentially distorting the original framework.
- Size of the NCQG: Excluding China, new markets and developing nations require at least $2.4 trillion to achieve 2030 climate goals, highlighting the need for alternative funding sources.
- Quality of the NCQG: Conditional financial assistance risks exacerbating debt and deficits in recipient countries. China advocates for public funding to form the majority of financial support from developed nations.
- Duration of the NCQG: Developed countries favor longer timeline to avoid short-term financial pressure, while developing nations argue for immediate action.
- Allocation of the NCQG: Developing countries demand funds for mitigation, adaptation, and loss and damage, but developed nations remain hesitant to cover loss and damage costs.
These unresolved issues reflect the complexity of climate financing discussions. The outcomes of COP29 will significantly shape future global climate financing efforts.