KEY DEMANDS FOR COP29 BY MEMBERS OF THE MOVEMENT FOR CLIMATE JUSTICE IN MADAGASCAR.

The Climate Justice Movement in Madagascar is calling for action in five (5) key areas at COP29, which comes at the end of a year of devastating climate events around the world, with estimates showing a current warming trajectory towards 2.5° to 2.9°C by 2100, which will be devastating for humanity and the planet. Finance is the only way to unlock global climate action that will put the world on a path to limit global temperature rise to 1.5°C, enable adaptation, and address the unavoidable loss and damage from climate change impacts on those least responsible.

Addressing the impacts of the climate crisis in the Toliara II District – Madagascar: Some Facts and Figures*

The Climate Justice Movement in Madagascar is calling for action in five (5) key areas at COP29, which comes at the end of a year of devastating climate events around the world, with estimates showing a current warming trajectory towards 2.5° to 2.9°C by 2100, which will be devastating for humanity and the planet. Finance is the only way to unlock global climate action that will put the world on a path to limit global temperature rise to 1.5°C, enable adaptation, and address the unavoidable loss and damage from climate change impacts on those least responsible.

Madagascar is currently among of the world’s top 10 vulnerable countries impacted by climate change. The island is considered as a cyclone hotspot, where six cyclone events landed during the 2021/ 2022 cyclone season alone. The loss of lives and material damage had been very significant, with thousands of housing units, schools and road infrastructure damaged, and irrigation works and perimeters flooded. The frequency and intensity of such extreme weather events is anticipated to increase over time with climate change.

The island is currently facing a situation of loss and damage sustained by climate change, which cannot be avoided by mitigation, adaptation or sufficient disaster risk management. While the 85 percent of its people living in poverty are unjustly captive to the adverse effects of climate change, the country is also trapped in vicious cycles of odious debt it will be forced to take on to recover from sustained disasters and their socio-economic ravages. According to the IMF, « under a climate-adjusted macroeconomic scenario that includes all humanitarian and post-disaster reconstruction needs, and assuming that the government fully covers these needs, debt would rapidly become unsustainable and exceed 85% of GDP by 2040 ».

The costs estimates of climate actions in the framework of the INDC of Madagascar (period 2015-2030) give a total of US$42.099 billion, including US$28.713 billion for adaptation.

CRAAD-OI in partnership with WoMin conducted a participatory research in four (4) communes of the District of Toliara II to assess both the visible and hidden costs of the climate crisis which are mostly borne by rural women. The research findings show that the main costs that could be quantified in monetary terms include the cyclone-induced Loss and Damage; the costs of adaptation; the losses in livelihoods and income; the costs from crop failure; the costs from food insecurity and malnutrition; and, the costs from increased reproductive work. The compensation owed to the affected rural women for all these externalised costs is estimated at a total of US$11 836 544 per year.

*Source: CRAAD-OI 2024. Ecofeminist Cost Analysis of the Climate Crisis in Toliara. Case study report

1. A fair, equitable and fit for purpose new finance goal

In 2009, developed countries agreed on mobilizing $100 billion a year for developing countries to adapt to climate change and cut greenhouse gas emissions. At the UN climate change conference in Paris in 2015, governments decided to set a New Collective Quantified Goal on climate finance from 2025 onwards, amounting to at least $100 billion per year and taking into account the needs and priorities of developing countries. In 2022, developed countries met this goal for the first time, providing a total of $115.9 billion in climate finance for developing countries. However, only a small share of the total went to low-income countries and only about a quarter to Africa. Loans made up the largest funding category, mainly going to middle-income countries.
  • The New Collective Quantified Goal (NCQG) on climate finance must be effectively adopted at COP29 in Azerbaijan, based on the recognition of the reality that the financial needs of developing countries are close to $2.4 trillion a year by 2030, which is are far beyond what is currently flowing to them.
  • In the long term, developed countries must commit to advancing the post-2025 global financing target to between USD 750 billion and USD 1 300 billion per year, so as to establish a financing framework that enables both an urgent transition to carbon-neutral economies, and developing countries’ access to increasing levels of new, predictable and non-debt-creating financing.
  • The funding must be sourced in developed countries, in accordance with the principles of common but differentiated responsibilities and respective capacities, and polluter pays.
  • Subsidiarity should be applied as a core qualitative principle to the NCQG so as to enhance direct access to climate finance by the most affected, and climate finance must support locally-led approaches that correspond to the needs and priorities of rural women, children and youth, Indigenous Peoples, and vulnerable groups and communities on the frontlines of the climate crisis as well as climate action.
  • A quantitative minimum target could be considered to track and account for providing and increasing the share of gender-responsive finance reached either annually or as a progression over time.

2. Doubling finance for adaption to climate impacts in developing countries.

Adaptation is the foremost priority in countries with lower emissions and acute vulnerability to climate fallout, as is the case for many small island developing States and least developed countries such as Madagascar. Even if many of them want to invest in climate action that benefits the world as a whole, many cannot afford to do so. Climate adaptation is becoming more expensive as the magnitude of climate change sets in. Countries may need to spend up to $387 billion a year by 2030, and significantly more by 2050, according to the United Nations Environment Programme. Despite these needs, and despite pledges made at COP26 in Glasgow to double adaptation finance to around $40 billion per year by 2025, adaptation finance reached only $32.4 billion in 2022.
  • With half the world’s population now living in the climate “danger zone,” where people are 15 times more likely to die from climate impacts, doubling finance for adaptation is imperative. Adaptation finance must be equitably distributed in ways that do not impose additional constraints.
  • Commitments for providing adaptation finance required at CPO29 must meet adaptation needs set to grow to more than $300 billion dollars a year by 2030. In Madagascar for example, the costs of adaptation were estimated at USD1 billion per year in 2021, while the total cost of adaptation Is currently about 30.1 billion.
  • Rich countries will have to commit to providing massive and real additional funding for developing countries to ensure a just energy transition. This can be done by redirecting fossil fuel subsidies to these countries; by cancelling unfair sovereign debts and taxing the super-rich; and by transforming the global financial architecture in a truly democratic way.
  • The current energy crisis in developed countries must not be solved by supporting the exploitation of fossil fuels in developing countries rich in oil and gas reserves. In developed countries, the current and potential impacts of decarbonization and energy transition on developing countries must be taken into account, as in the case of the exploitation of rare earths, which arestrategic minerals in high demand for the energy transition, but with enormous social and environmental costs for countries like Madagascar, which would thus become sacrifice zones.

3. Loss and Damage (L&D)

A global fund to secure contributions towards the Loss and Damages caused by climate impacts was established at COP27, and then operationalised at COP28. This year, a board for the fund has been established which is now working out the details of how the fund will operate, but none of the $700 millions pledged to the fund at COP28 has yet been distributed. A high-level dialogue will be convened during COP29 to engage political leaders in commenting on how it is developing. Crucially, there remains much concern amongst developing countries that the newly titled “Fund for Responding to Loss and Damage” could yet fall short of the scale of ambition required to truly meet the need.

 Many developing countries and civil society organisations are pushing at COP29 for a defined target for L&D to be set under the NCQG. The money for this loss and damage “sub-goal” in the NCQG should predominantly come from public and grant-based money.

  • With extreme weather events in developing countries having already caused more than $109 billion in losses by 2022, according to experts about $580 billion a year until 2030 is required for this Loss and Damage Fund, which must be set to grow in line with needs.
  • The money would have to come from developed countries, but also from the tax that fossil fuel companies have to pay on their windfall profits.
  • The Multilateral Fund should be designated as an independent fund for the people and by the people, within the framework of the UNFCCC. The Fund must focus exclusively on loss and damage, and ensure meaningful public participation and representation of indigenous peoples, women, youth, other affected groups and civil society.
  • The debt burden of developing countries to remedy the loss and damage caused by the climate crisis, of which they are the victims and not the perpetrators, implies a double injustice. Consequently, the Loss and Damage Fund should provide grants, not loans, which would only increase the debt burden of countries affected by the climate crisis and the misery of their communities.
 
4. Climate debt
 
93% of climate-vulnerable countries are in debt distress or at significant risk of debt distress. In 2019-2020, over 60 per cent of climate finance entailed borrowing funds, or around $384 billion. Only $47 billion came with low cost or concessional interest rates. No-cost grant finance was only $36 billion. Moreover, the current international financial architecture is increasing rather than
reducing the debt of developing countries, and hampering their ability to combat climate change. In the absence of adequate funding to cope with the losses and damage suffered, Madagascar and the most vulnerable countries will be forced to borrow to cover reconstruction and recovery costs, and their debt will rapidly become unsustainable.
  • Developed countries must pay their historical and ecological debts to Madagascar and other developing countries suffering loss and damage as a result of the climate crisis.
  • Debt cancellation for developing countries is also a sine qua non condition for freeing up the funds needed for a just energy transition in these countries.
  • A moratorium on debt (without interest payments) must be put in place automatically following an extreme climatic event in the Southern countries concerned.
  • High financing costs largely drive unsustainable national debt burdens. When it comes to climate finance, this can translate into heavy costs beyond what climate action already requires. An overhaul of the debt system and a transformation of the international financial architecture are absolute priorities for redressing the injustices associated with climate financing and for combating climate change.
  • Debt-for-climate swaps must not be used as a solution to both the problems of debt unsustainability and the lack of climate financing, due to their lack of transparency and significant impact on over-indebtedness, in addition to the loss of sovereignty to the detriment of the populations concerned that they imply.
  • Climate debt must also be paid by taxing the super-polluters, in particular the oil, gas and coal companies, but also the corporations in the agricultural and food industries that are condemning the planet while continuing to enrich themselves.

5. Article 6.4

Carbon offset mechanisms provided for at international level must be compatible with a just, equitable and sustainable transition. The implementation of article 6.4 must adopt rules that reflect the standards of countries’ existing human rights obligations, and that do not undermine the important and precautionary work being car-ried out in other UN fora such the Convention on Biological Diversity, and the London Convention/London Protocol for protecting the marine environment from pollution and waste dumping.

  • No to the creation of biodiversity financial markets: the political objective of such markets is above all to maintain the rich countries’ lifestyles that are destroying the climate and nature, and in the process to create a new and extremely profitable asset class for the financial sector of the rich countries.
  • The measures adopted at COP28 must not undermine the fundamental rights and livelihoods of communities in developing countries. Land, including the territories of indigenous groups and agricultural land, and forests must be exclud-ed from Article 6.4 of the Paris Agreement.
  • The implementation of Article 6.4 must adopt rules and procedures that are in line with international standards and best practices regarding indigenous peoples’ right to free, prior and informed consent, participation and access to information, including environmental information.
  • Carbon absorption activities that are not sufficiently reliable in terms of sequestration capacity, such as carbon capture and storage technologies, should be excluded from Article 6.4.
  • The standards that have now been adopted by the Article 6.4 Supervisory Body establish a very broad definition of carbon removals that should not allow for the commercialization of several forms of dangerous and unproven land and marine geoengineering technologies which would bring many risks to ecosystems and communities.
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(1) According to the Loss and Damage Collaboration, a North-South collective gathering researchers, lawyers and activists.
(2) Markandya, A., González-Eguino, M. (2019). Integrated Assessment for Identifying Climate Finance Needs for Loss and Damage: A Critical Review. https://doi.org/10.1007/978-3-319-72026-5_14