A sign of poverty for wealthy Switzerland

For two weeks, countries of the South fought in Baku for a new climate finance goal that would fairly distribute the costs related to the climate crisis and guarantee adequate financial support from the North. But they ran up against the opposition of rich countries.

The conference was already on borrowed time when representatives of the poorest countries and of the small island developing states expressed their despair and anger at the North's lack of urgency in increasing its financial contributions. They are already threatened in their existence by sea level rise and other devastating effects of global warming. A few hours later, they were forced to accept a barely better proposal if they wanted any conclusion to the conference on climate finance.

The starting point of COP29 was simply that the global South faced a huge uncovered financing gap that prevented it from implementing adequate national contributions to reach the 1.5-degree goal and from covering climate-related damages and losses. All this without counting the barriers to accessing existing climate finance. In total, a financing goal of $1 trillion per year was demanded by organisations such as Alliance Sud (compared with $300 billion ultimately promised in Baku, ed.).

The idea of widening the donor base was perceived as a way for industrialised countries to shirk their responsibilities.

The South tries to put pressure

Studies show that, across the poorest countries and small island states, in terms of climate change adaptation the gap cannot be filled by private investments. Investors refuse to intervene and heavily indebted countries cannot afford to invest private capital at the price demanded. That is why countries of the South and civil society pushed for the new climate finance goal to include much more public funding in the form of grants and heavily concessional loans.

The position of current donor countries was perceived as unfair by civil society, because they made no offer to increase their own contributions to climate finance. And this despite the Paris Agreement clearly placing responsibility on them. It is from this perspective that the strong scepticism of much of civil society about the idea of widening the donor base should be understood. It was perceived as a way for industrialised countries to shirk their responsibilities.

Switzerland undermines multilateralism

At Alliance Sud, we supported Switzerland's request to include new donor countries, but always pointed out that this had to be linked to an increase in its own contributions. However, certain statements by Switzerland in the media—during and after COP29—unfortunately confirmed what countries of the South already suspected: industrialised countries want to evade their own responsibilities by using the argument of the donor base. By this behaviour, our country ultimately weakens the multilateralism on which it itself depends as a small state.

Switzerland must now implement the new climate finance goal and assume its fair share of the costs caused by the climate crisis, especially in the poorest countries of the South—and this in its own interest. This will help avoid further damage, save human lives and prevent new causes of displacement. And only a massive increase in climate finance will make a successful transition possible everywhere on the planet.

Also to read on the Alliance Sud site: the commentary by its director Andreas Missbach on the Federal Council's controversial position during COP29.

Delia Berner represented Alliance Sud within the Swiss delegation to COP29. This commentary was written in her personal capacity and not on behalf of the delegation.

This article has been automatically translated using AI. If you notice any errors, please don't hesitate to contact us.