Climate devastation and distress is oblivious to political ideologies and preferences. At a time when global attention and action towards climate change is waxing and waning, depending on the political grouping in charge, climate-related natural disasters have become a routine phenomenon. Developing countries therefore face a strategic choice in addressing the root causes of climate distress. They could either remain in denial, which is sadly the case in many countries, or pursue the smarter approach of implementing mitigation and adaptation strategies.
As the world prepares for yet another climate summit, COP30 which will be held in Brazil later this year, developing countries have a special responsibility to ensure that climate issues do not disappear or get diluted in the global agenda. There is a risk from this happening due to America’s summary withdrawal from the Paris climate accord and recent efforts by Europe to amend its own climate regulation and targets.
After hectoring the global south for several decades on the urgency for climate action, rich nations are now conveying an alternate message of obfuscation and delays. The fact remains that rich nations have the wherewithal and the resources to address climate distress as it happens, as is the case with the devastating floods in Texas this week. Poorer nations do not have this option, as funding becomes scarcer due to OECD aid cuts and the cascading impact it has on shuttering entire programs.
Each year as the COP Presidency rotates, there are recitations on the climate finance gap (estimated at $3 trillion each year for the next decade), the need for public-private partnerships, and on the scaling of multilateral funding. Pledges and commitments made by the OECD have largely failed to materialise and developing countries should be seeking alternative funding options. Fortunately, these options exist due to the emergence of well-funded middle powers like China, the UAE, India, and Brazil.
The UAE, for example, took a leadership position as COP28 host in establishing an alternative climate investment vehicle called Alterra, in partnership with leading asset managers. The goal is to deploy much-needed capital in developing countries. China, India and Brazil are providing development assistance and know-how to low-income countries on addressing the direct impacts of climate distress.
This is the development model of the future – capital and know-how flowing east to east rather than the traditional west to east. By learning from each other, sticking to global climate targets, and focusing on climate resilience, the global south can be a pacesetter rather than a laggard in addressing climate change. They must seize the opportunity.
Vasuki Shastry is an ESG expert and author, most recently of “The Notorious ESG,” and was Global Head of Public Affairs and Sustainability at Standard Chartered Bank
