At the COP29 climate conference, the Pacific Island Climate Action Network, representing island nations of the Pacific Ocean, emphasized the importance of focusing on the New Collective Quantitative Goal (NCQG) and government grants.
According to Report, the NGO warned against false solutions like carbon markets and private financing, which fail to provide the necessary conditions for effective climate action.
The common strategy of Global North countries - claiming that the private sector can cover most of the costs of a just energy transition - has proven ineffective. This tactic has already failed in other areas of development. Renewable energy is not too expensive, but its support requires government investments, not just subsidies, the NGO representative stated.
Pacific organizations have clearly outlined priorities to achieve the 1.5°C limit, which is the survival threshold for the region.
"We are here to call for trillion-scale government grants under the NCQG and dispel the myth that a just energy transition can be fully financed by the private sector," the representative emphasized.
The current approach to mobilizing private investments through blended finance has proven inefficient, with each dollar of public funding attracting only minimal private investments on average. Relying on this approach jeopardizes the goal of $100 billion per year in climate finance.
The NGO chair added, "We are currently witnessing a global financing deficit of $5 trillion annually for the energy transition until 2030, especially outside the OECD and China. The largest financing gaps are observed in sectors such as public transport, housing retrofits, and just transition support measures."
Despite new alliances and achievements like the Loss and Damage Fund, there remains a need for significant grant contributions and public investments. As countries move towards COP30 and COP31, climate finance must be a key catalyst for climate action. The Pacific Islands Climate Action Network representative said that if Australia truly aspires to become a global leader in renewable energy, it must also phase out fossil fuels.
Optimism persists as Global South countries demonstrate strong unity in their needs and priorities, which can foster understanding and action from developed nations, the representative of Pacific Island Climate Action Network said.