Climate change

New Oxfam report shows broken promises on climate finance

June 6, 2023

A new report out this week titled ‘Climate Finance Shadow Report’ from Oxfam shows New Zealand still has much more to do to support poorer countries adapt and respond to the climate crisis.

Oxfam Aotearoa’s Climate Justice Lead Nick Henry said:

“Oxfam’s report reveals that as governments around the world begin negotiations of a new global goal for climate finance, rich countries have already broken their promise to deliver US$100 billion a year to assist developing countries.

“The New Zealand Government is doing better than most on climate finance, but unfortunately the bar is very low. It is time for New Zealand to commit to increasing its climate finance and call on other rich countries to do the same. And deliver on their promises.

“The new report reveals that globally only a quarter of climate finance is given as grants, meaning most climate finance is provided in the form of loans. Although the New Zealand Government has a long way to go in order to do its fair share, one positive take away is that New Zealand has a strong commitment to give climate finance as grants, not loans. Loans only increases the burden on poorer countries as they take on expensive debt. Debt created from the failure of rich countries to deliver on their promises.

“It is also encouraging to see New Zealand increasingly integrate gender-equitable approaches to climate finance, but the Government is a long way off from making sure that the needs of people in all their diversity are met. New Zealand must stand with our whānau in the Pacific – the women, girls, and LGBTIQA+ and others who are on the frontlines of the climate crisis.

“Rich countries must find new ways to fund climate finance by taxing the wealthiest and the big polluters. In addition, Oxfam Aotearoa calls for new and additional finance to respond to loss and damage caused by climate change. This is a separate negotiation leading up to COP28, and should come with new funding.”

Notes:

Click here for the report: https://www.oxfam.org.nz/wp-content/uploads/2023/06/Climate-Finance-shadow-report.pdf

New Zealand’s current climate finance commitments end in 2025. Commitments for the next period from 2026 will need to contribute New Zealand’s fair share of the new global quantified goal on climate finance to be set at COP28 in December. Discussions on the process for setting the new global goal are underway this week in Bonn, at the intersessional meeting of parties to the UN Framework Convention on Climate Change.

Rich countries’ continued failure to honour their US$100 billon climate finance promise threatens negotiations and undermines climate action

June 6, 2023

Rich countries’ continued failure to honor their $100 billon climate finance promise threatens negotiations and undermines climate action

As global greenhouse emissions continue to rise, and climate change wreaks more havoc upon the people and places least responsible for the problem, rich polluting countries are now three years overdue on their promise to mobilize $100 billion a year in climate finance for low- and middle-income countries.

To make matters worse, says Oxfam, the actual support they provide is much less than reported numbers suggest, and is coming mostly as debt that has to be repaid.

Oxfam’s ‘Climate Finance Shadow Report 2023’ published today shows that while donors claim to have mobilized $83.3 billion in 2020, the real value of their spending was —at most— $24.5 billion. The $83.3 billion claim is an overestimate because it includes projects where the climate objective has been overstated or as loans cited at their face value.

By providing loans rather than grants, these funds are even potentially harming rather than helping local communities, as they add to the debt burdens of already heavily indebted countries —even more so in this time of rising interest rates.

Donor countries are repurposing up to one-third of official aid contributions as climate finance rather than putting forward new and additional money, while more than half of all climate finance going to the world’s poorest countries is now coming as loans.

Among bilateral providers, France has the highest share of its bilateral public climate finance through loans, at a staggering 92 percent. Other loan-heavy culprits include Austria (71 percent), Japan (90 percent), and Spain (88 percent). In 2019–20, 90 percent of all climate finance provided by multilateral development banks, like the World Bank came as loans.

“This is deeply unjust. Rich countries are treating poorer countries with contempt. In doing so, they are fatally undermining crucial climate negotiations. They’re playing a dangerous game where we will all lose out,” said Oxfam International’s Climate Change Policy Lead, Nafkote Dabi.

In the lead up to the Bonn Climate Summit (5 to 15 June), Oxfam also finds that climate-related development financing is largely gender-blind. Only 2.9 percent of all funding identified gender equality as worth prioritizing. Only one-third of climate finance projects in 2019-2020 mainstreamed gender, meaning that they took into account both women and men’s specific needs, experiences and concerns.

Oxfam estimates that the real value of funds allocated by rich countries in 2020, to support climate action in low- and middle-income countries was between $21 billion and $24.5 billion, of which only $9.5 billion to $11.5 billion was directed specifically for climate adaptation —crucial funding for projects and processes to help climate-vulnerable countries address the worsening harms of climate change.

“Don’t be fooled into thinking $11.5 billion is anywhere near enough for low- and middle-income countries to help their people cope with more and bigger floods, hurricanes, firestorms, droughts and other terrible harms brought about by climate change,” Dabi said. “People in the US spend four times more than that each year feeding their cats and dogs.”

Oxfam is highly concerned that adaptation funding is given too little attention when, in the past three years, India, Pakistan and Central and South America have all seen record heatwaves, in Pakistan later followed by flooding that affected over 33 million people, while East Africa is mired in its worst drought in over 40 years, contributing to crisis levels of hunger.

“Despite their extreme vulnerability to climate impacts, the world’s poorest countries, particularly the least developed countries and small island developing states, are simply not receiving enough support. Instead, they are being driven deeper into debt,” Dabi said.

The expectation that private investors can be mobilized by low- and middle-income countries to contribute a sizeable chunk of climate financing has not materialized, raising only $14 billion yearly, mainly for mitigation. Oxfam says it is difficult to find details on how this private finance is used or who benefits from it. According to a recent Organization for Economic Co-operation and Development (OECD) report, mobilized private adaptation financing rose sharply from $1.9 billion in 2018 to $4.4 billion in 2020, mainly because of a big liquefied natural gas energy project in Mozambique that does not reveal any adaptation activities.

Oxfam is highly concerned that funding for “loss and damage” —climate impacts that cannot or have not been mitigated or adapted to— still has no predictable place within the international climate finance architecture. Loss and damage finance needs are urgent, with estimates saying that low- and middle-income countries could face costs of up to $580 billion annually by 2030.

Oxfam says that ongoing deliberations under the UN Framework Convention on Climate Change (UNFCCC) to set a new global goal on mobilizing climate finance from 2025 onwards is a chance to rebuild trust between rich and low- and middle-income countries. But if past mistakes are not resolved and simply repeated, this initiative will have failed before it properly starts.

Climate finance providers should be massively scaling-up their efforts and be reporting climate financing on a case-by-case basis, highlighting the actual proportions channeled towards mitigation and adaptation. There is equally an urgent need for more grant-based financing for climate action, and less momentum toward loaning the money they have all promised to give.

Notes to editors

Download Oxfam’s ‘Climate Finance Shadow Report 2023’.

In East Africa alone, drought and conflict have left a record 36 million people facing extreme hunger, nearly equivalent to the population of Canada. Oxfam estimates that up to two people are likely dying from hunger every minute in Ethiopia, Kenya Somalia, and South Sudan.

The UN currently designates 46 countries as LDCs.

According to the OECD, mobilized private adaptation financing rose sharply from $1.9 billion in 2018 to $4.4 billion in 2020, mainly because of a big liquefied natural gas energy project in Mozambique that does not reveal any adaptation activities.

According to Anil Markandya and Mikel González-Eguino (2018), the costs of loss and damage in low- and middle-income countries could reach between $290 billion to $580 billion a year by 2030.

According to the American Pet Products Association, Americans spent $58.1 billion on pet food and treats in 2022.

Oxfam Aotearoa welcomes landmark UN vote to seek ICJ Advisory Opinion on Climate Change

March 31, 2023

Oxfam Aotearoa congratulates Pacific Island Students Fighting Climate Change (PISFCC) on their successful campaign to put the world’s Governments’ responses to climate change before the International Court of Justice (ICJ). Oxfam Aotearoa’s climate justice lead Nick Henry said:

“Well done to the New Zealand Government for standing with the Pacific at the UN today on Vanuatu’s resolution. This is what we want to see from our government.

“To put this into perspective, the last comparable opinion was in 1996, when, after a long campaign from civil society, the ICJ issued an advisory opinion on nuclear weapons that was critical to nuclear disarmament and keeping the Pacific nuclear free.

“The world’s governments, especially in rich countries, must urgently take stronger action to reduce greenhouse gas emissions and stop the climate crisis getting worse. A strong opinion from the ICJ would help to hold governments to account on their obligations to act.”

Spokesperson for PISFCC Solomon Yeo said: “Today we celebrate four years of arduous work in convincing our leaders and raising global awareness on the initiative. We commend the undying support of our Pacific civil society organisations, communities, and youth who, without their support, we would not have ventured this far.

“The adopted Resolution is a testament that Pacific youth can play an instrumental role in advancing global climate action. This further solidifies why young people’s voices must remain an integral part of the process. Now the first stage is over, we look to join hand in hand with governments and partners in bringing the world’s biggest problem to the world’s highest court.”

Oxfam Aotearoa and NZ Centre for Environmental Law says it looks forward to engaging with the government on its written and oral submissions to the court to make sure the Advisory Opinion sets clear expectations for states to act with urgency to stop the climate crisis.

Notes:

The UN General Assembly has voted to request an advisory opinion from the International Court of Justice on ‘the obligations of States in respect of climate change’. The resolution asks the ICJ to clarify the obligations of states to take effective action on climate change, as well as the consequences under international law for states that fail to act.
Here is the UN resolution text.

Oxfam reaction to IPCC’s Synthesis Report

March 21, 2023

Responding to the publication today of the IPCC’s Synthesis Report (SYR), Oxfam’s Climate Justice Lead Nick Henry said:

“This is, literally, the last chapter. The science shows that limiting global heating to 1.5°C is still possible —but only just. Unless we pull the emergency brake on deadly carbon pollution, ‘unheard-of’ heatwaves, storms, droughts and floods will continue to become more frequent and hit more places and people. People living in poverty are bearing the brunt of these climate-induced crises, including mass hunger happening now in Eastern Africa, with a rise of just 1.1°C.

“It’s outrageous that after six massive IPCC reports, 27 climate change conferences, eight hottest years on record, and multiple one-in-one-hundred year extreme weather events —with emissions still rising— governments continue to encourage the oil and gas industry to drill deeper and wider for fossil fuels. More than 600 fossil fuel lobbyists were at COP27 and an oil boss will lead the next climate talks in Dubai.

“Oil giants raked in record profits in 2022. They are extracting these riches from a stricken planet. Their statements of ecological concern ring hollow. If governments had clawed back the massive profits that oil and gas producers funneled to their rich shareholders last year, they could have increased global investments in renewable energy by nearly one-third.

“We can tackle the climate crisis and end poverty. This is not an either-or. If the richest 1 percent stopped squandering so much carbon on private jets, big polluting cars and investments in fossil fuels, the poorest half of humanity could grow their tiny carbon footprints to get their basic needs met.

“To stay within the 1.5°C guardrail, every person on Earth would need to stay below an average of 2.2 tons of CO2 emissions per year by 2030. The richest 1 percent exhaust this remaining ‘carbon budget’ in just 12 days each year, while the poorest 50 percent of humanity emits less than half over an entire year. This inequality is absolutely ridiculous.

“There’s only a sliver of a chance of limiting heating to 1.5°C but we can’t throw in the towel. Every fraction of a degree of heating prevented will be counted in millions of lives saved. Even a half-degree could make it much more difficult to grow crops, raise animals and catch fish.

“We need funds for climate action and deep cuts to emissions —not just by the richest countries, but also by the wealthiest individuals and corporations. Rich countries are most responsible for the climate crisis and must pay their debt to poorer countries by providing sufficient money for adaption, shifting to renewable energy, and addressing loss and damage. There is neither enough time nor carbon left for empty pledges and false solutions like carbon capture and storage. Endless adaptation to climate change is not possible —we need a fast and equitable phase-out of fossil fuels. Otherwise, a catastrophe for people in every country will be just around the corner, and it will be painful.”

Notes

According to the World Meteorological Organization (WMO), the past eight years were the warmest on record globally, fueled by ever-rising greenhouse gas concentrations and accumulated heat.

At least 363 fossil fuel lobbyists were granted access to COP27.

Big Oil more than doubled its profits in 2022 to US$219 billion, more than the GDP of many countries. According to Janus Henderson Investors, the dividends of oil and gas producers totaled US$151.8 billion in 2022. The IEA reports that $472 billion was invested in renewable power in 2022. (151.8/472)*100 equals 32.2 percent.

Keeping to 1.5°C would require limiting emissions to 17Gt of CO2. Divided equally among the global population, this is approximately 2.2 tons per person. The richest 1 percent will emit this amount of carbon in 12 days, the richest 10 percent in slightly over a month, and the poorest half of humanity will emit less than half over an entire year. These calculations are based on analysis published in Oxfam’s “Carbon Inequality in 2030” briefing note in 2021. Oxfam will publish new research on carbon inequality in 2023.

Oxfam’s research found that the investments of just 125 billionaires emit 393 million tons of CO2e each year —the equivalent of France— at an individual annual average that is a million times higher than someone in the bottom 90 percent of humanity.

According to the World Inequality Lab, eradicating global poverty below US$5.50 would entail an increase in carbon emissions of approximately 18 percent. This is roughly equivalent to the emissions of the richest 1 percent (15 percent between 1990 and 2015).

Oxfam raises fresh concerns for Türkiye earthquake survivors as torrential rains and flooding batter devastated region

March 15, 2023

Survivors of last month’s devastating earthquakes in southern Turkiye have been dealt a fresh blow as heavy rains and severe flooding hit the region, with further downpours forecast in the coming hours.

At least five people have been killed so far and at least five others are reported missing, with the provinces of Sanliurfa and Adiyaman badly impacted.

Footage shows city streets in Sanliurfa turned into fast-flowing rivers, with cars and other debris being swept away, and people being rescued from the floodwaters.

Thousands of people who have been living in tents since February’s earthquakes have also been affected with reports some have been evacuated. A hospital’s emergency department was inundated as well as many homes and businesses, and schools were closed.

The General Directorate of Meteorology has issued an orange alert for a possible extreme downpour in the provinces of Kahramanmaraş, Şanlıurfa, Kilis, Gaziantep, Adıyaman, Malatya, Elazığ, Diyarbakır and Mardin, most of which were also badly impacted by the earthquakes, which killed more than 50,000 people.

Oxfam KEDV’s Deputy Executive Director Didem Demircan said the situation was incredibly difficult for many people who had already lost everything in the last disaster.

“The situation is extremely dire. Flooding is not unusual in this area, but to have this come in the immediate aftermath of the earthquakes is compounding the suffering of those still struggling to come to terms with the first disaster and its impact on their lives.

“As well as the tragedy of more lives lost, roads have been blocked again limiting access, dams are overflowing and large amounts of agricultural farmland have been impacted, with some harvests likely to have been lost.

“Floodwaters and stagnant water also increase the risk of further contamination of drinking water supplies, which were already threatened by heavy infrastructure damage, and measures must be taken to prevent the outbreak of water-borne diseases.

“People impacted by this flooding will be in need of food, drinking water, sanitation and shelter, as well as furniture and bedding. Women will require extra support as risks to their safety always increase in disasters.”

Oxfam is already responding to last month’s earthquakes and has been working with the National Disaster Response Platform and a network of women’s cooperatives to facilitate the distribution of food, drinking water, temporary shelter, blankets, sanitary kits and power banks. Community kitchens have also been established in various locations, including in Sanliurfa.

Oxfam and partners mounting a humanitarian response to help people affected by cyclone in Malawi and Mozambique

March 13, 2023

More than 80 people including women and children have been killed in Mozambique, Malawi and Madagascar, and millions more urgently need clean water, shelter and food following Cyclone Freddy – the longest and strongest tropical storm on record in the Southern hemisphere – which has damaged thousands of homes, roads, and telecommunication infrastructures.

Oxfam and partners are currently assessing the scale of devastation in order to mount a humanitarian response to provide clean water, sanitation and hygiene facilities, as well as emergency cash and food.

“This is a double tragedy for the people of Malawi and Mozambique as this is happening at the time when the two countries are already battered by a cholera outbreak,” said Dailes Judge, Oxfam in Southern Africa Programme Director.

Among the hardest hit areas are Quelimane district in Zambezia Province in Mozambique, and Blantyre City, Chikwawa, Thyolo, Phalombe and Nsanje districts in Malawi. Collapsing infrastructure particularly in the remotest areas is slowing relief efforts. Oxfam is working in close cooperation with both governments.

Cyclone Freddy made its first landfall on the eastern coast of Madagascar on February 21, 2023, and proceeded to hit Mozambique. The climate crisis has made extreme weather including cyclones more severe and prolonged.

“The people that contribute the least drivers of climate change are once again paying the steepest price to climate change, including their own lives”, said Lynn Chiripamberi, Oxfam in Southern Africa Humanitarian Programme Lead.

“A comprehensive humanitarian response is urgently needed to ensure those most impacted get immediate shelter, water and food. Equally important is for rich polluting nations to pay for the climate loss and damage of these countries,” added Judge.