The Future is Equal

Climate change

Reaction to Scotland announcement on Loss and Damage fund

Responding to the announcement that the Scottish Government has pledged £1 million (NZ$1.9 million) for ‘loss and damage’, Jamie Livingstone, Head of Oxfam Scotland, said:

“The First Minister’s announcement today is ground breaking recognition that funding to help certain people adapt to the climate crisis is utterly useless when their entire community has been wiped off the map.

“This announcement is welcome acknowledgement that for some communities around the world, talk of limiting the damage of climate change has already come far, far too late. In many places, climate change has already caused irreversible damage to people’s homes, lives and livelihoods. Despite this grim truth; world leaders have continued to duck calls to establish a new funding mechanism for loss and damage. Other countries must now follow Scotland’s lead and offer dedicated financial support to countries where lives have already been lost and ruined because of climate change.”

In addition, Alex Johnston, Oxfam Aotearoa Campaign Lead, said:

“We congratulate Scotland for recognising the devastating impacts of climate change on climate vulnerable countries, and being the first developed nation to commit to making an explicit financial contribution to tackling the loss and damage climate breakdown creates.

“Pacific Islands have been calling for loss and damage finance to be addressed globally for over 30 years. Despite efforts to adapt, climate-charged cyclones and flooding causes asset losses worth hundreds of millions of dollars in the Pacific each year. It is crucial other world leaders follow suit and recognise that these events need distinct funds to recover from.

“We call for the New Zealand government to follow Scotland’s lead and scale up financial support to existing loss and damage finance solutions in the Pacific with new commitments, and label this support as loss and damage, not adaptation finance. The government should also align with Pacific Island Countries’ positions on loss and damage at COP26 to get a global response to this issue.”

Oxfam criticises lack of G20 bold action to tackle vaccine inequality, climate change, and promote a fair economic recovery

At the end of the G20 Summit in Rome, Italy, Oxfam panned the lack of bold and effective action from the world leaders at such an important moment in the global response to the COVID-19 pandemic.

“Despite the amazing coffee in Rome, G20 leaders must have been drinking decaf, as their collective results were muted, unambitious, and lacking concrete action plans,” said Oxfam’s Senior Advisor, Jörn Kalinski. “This G20 was supposed to be a key global moment for shaping effective, innovative and equitable responses towards a post-COVID world, but world leaders failed to come together and deliver the necessary action to the historic crisis still unfolding.”

While the G20 intend to help get at least 40% of the population in all countries vaccinated by the end of 2021 and 70% by mid-2022, they did not take the concrete action to put us on the path to deliver on that goal, such as a plan to boost the supply of vaccines in developing countries and remove relevant supply and financing constraints. According to the World Health Organization, 82 countries are at risk of missing that target. It is clear that we will not get there if we perpetuate the current profit-driven approach of insufficient donations of doses, voluntary licenses, generic support for technology transfer which has crashed and failed miserably.

“What an abysmal and total failure of leadership. The G20 talk of helping to reach the 70% vaccination target but yet again produce absolutely no plan to achieve it. At this stage in the pandemic for them to have requested health ministers to simply ‘explore’ ways to accelerate vaccine access is a sickening insult to the millions of people who have lost loved ones to this catastrophic pandemic and to the health workers on the front line trying to save lives with no protection,” said Kalinski. “Paltry and unfulfilled promises of donated doses will not end this pandemic, nor will pathetic hopes that greedy pharmaceutical corporations will at some point volunteer to do the right thing. It is scandalous that Germany and the UK have acted to silence the majority of the G20 members who support the breaking of pharmaceutical monopolies so that vaccine production can be redistributed and scaled up across the world. It is beyond time that the rights and the recipes for these lifesaving tools were shared as global public goods.”

As the world’s largest economies and emitters, the G20 should have provided the lightning bolt that the COP26 climate talks so desperately need. Instead, they responded with vague promises and platitudes.

“Confirming the 1.5°C goal of the Paris Agreement was a minimum requirement. Without a promise to revise their lacklustre national climate plans to be in line with this goal, it is meaningless,” said Kalinski. “The planet is on fire, and we are running out of time. It is now critical that COP26 agrees to send all countries back to the drawing board to scale up their climate plans immediately, and not in five years’ time.”

The half-hearted words on financing adaptation in vulnerable countries were again not backed up by timeframes or targets. Without these, poorer nations will continue to lack the resources they need to protect lives, homes and businesses from weather disasters. This was a missed opportunity to re-invigorate the $100-billion climate finance target that should have been met last year.

One of the few positives is the promise to stop financing new coal power plants overseas by the end of this year. But it is disappointing that there was not a similar announcement on domestic coal power and on phasing out other fossil fuels altogether with rich nations taking a lead. This means that climate-killing coal power plants can be built for another ten years, which is incompatible with the goal of limiting warming to 1.5°C.

G20 leaders also had the opportunity to pursue a more equitable economic recovery and there was growing hope that leaders would take bold action on debt relief.  Mounting debt in developing countries poses a considerable threat to the fight against COVID-19, as it represents a clear opportunity cost to resources that should be channeled to public health and economic recovery. However, these hopes were dashed.

“There is no credible reason for rich countries and companies to continue extracting resources from the world’s poorest countries and people during an unprecedented global catastrophe,” said Kalinski. “Ad hoc approaches with strong biases towards the borrowers should be left to the past. Instead, we need to establish an international, autonomous, framework to oversee temporary standstills and handle debt restructuring, thus ensuring poor countries are not using their limited resources to pay off their debts instead of helping their citizens cope with the pandemic.”

Oxfam welcomes the general SDR allocation that the G20 agreed to earlier this year to address the huge liquidity needs associated with the pandemic and the post-crisis recovery and it is good to see the G20 stating an ambition of channeling USD 100 billion worth of SDRs to more vulnerable economies; this should be a bare minimum given the massive gulf between what rich countries and lower income countries received. This must now be operationalized through individual country commitments which are still sorely lacking, and crucially this funding must be delivered on terms that work for countries and their people.

“Recalling that rich countries received USD 400 billion in SDRs this year, we need to see them now make individual commitments to meet, if not surpass, the USD 100 billion commitment on SDR channeling. Today the pledges only amount to USD 45 billion, less than half of the global ambition,” said Kalinski. “Moreover, how the channeling is done is of fundamental importance. We don’t want to see funding that locks countries into high debt payments or into risky conditionality that could worsen inequalities. Moreover, SDR channeling absolutely cannot be a substitute for existing aid and climate finance commitments”,

The G20 Leaders also endorsed the OECD/G20 global tax agreement that Oxfam says is far from historic and displays a far too moderate level of ambition and little fairness. While the agreement proves it could have been possible and realistic to tax large corporations on their global profits, the envisaged profit redistribution is extremely limited and less than one hundred mega corporations will be in scope. It could generate just 10 million Euro on average in extra revenues for 52 of the poorest countries and comes with the conditionality to remove all the existing digital services taxes. The minimum tax rate set at 15% with generous carve outs is a joke: rather than curbing the harmful tax competition, it normalizes low-tax jurisdictions and risks to transform the current race to the bottom into the race towards the new minimum.

“At the G20 Summit in Rome, G20 leaders could have taken urgent action to dramatically scale up manufacturing and access to COVID-19 vaccines around the world, promote a fair economic recovery, lower dangerous greenhouse gas emissions, and help the poorest countries adapt to the climate change already happening,” said Kalinski. “The bottom line is that this Summit failed to deliver much of anything for people, planet or prosperity.”

Oxfam Aotearoa: NDC announcement a betrayal to Pacific Island countries

The New Zealand government’s NDC announcement is a betrayal to Pacific Island countries and those on the frontlines of climate change says Oxfam Aotearoa Executive Director Rachael Le Mesurier. The Government’s Nationally Determined Contribution (NDC) target sets the bar for New Zealand’s contribution to keeping global warming within 1.5 degrees under the Paris Agreement. However, Le Mesurier says that the target is not good enough: 

“Let’s be real here, this is not our fair share. The government has changed the way they count our emissions reductions to make them look like they are doing more than they are. This is a government that has said time and again that climate change is our nuclear-free moment. Instead of leading the fight against climate breakdown, they are hiding their inaction by changing the goal posts. 

“Our previous target was to reduce emissions to 30 per cent below 2005 levels by 2030 on an emissions budget basis. The Climate Change Commission (CCC) recommended that to be consistent with 1.5 degrees, New Zealand’s new target needed to be ‘much more than 36 per cent’ measured on an emissions budget basis, yet it is only 41 per cent,” Le Mesurier said. 

Rather than showing the ambition we need, what the government have done today is change the way they measure their emissions from an emissions budget basis to a point year basis. This means they can make it look like they have increased the target by more than they have.  

Last year, an Oxfam report found that to meet its fair share, New Zealand’s updated target needed to be between 80–133 per cent emissions reductions below 1990 levels by 2030. Le Mesurier says that the government has had all the science, advice and the tools to get this right, but this time has failed Aotearoa, failed our Pacific whanau and failed as a global citizen: 

“We’ve shown that we can play our part in global efforts with a recent four-fold increase in climate finance for countries most vulnerable to climate change. But now we need to get our own house in order. Each Minister in Cabinet needs to take responsibility for that fact that our current plans for domestic action are completely inadequate. New Zealand is not taking the action necessary for the country to do its bit to protect our planet and our people from significant harm.” 

Earlier this year the harrowing sixth IPCC report revealed human influence has warmed the planet almost beyond repair, issuing what the UN Secretary General called a “red alert” for humanity that world leaders must urgently act on. 

“The New Zealand government has shown us today that they are not committed to limiting the worst effects of climate change for people on the frontlines, nor to keeping a 1.5 degrees future in reach. For that to change, some bold action needs to happen to tackle our industries with the biggest footprint domestically, including the agriculture sector.” 

/ENDS 

 

Notes: 

  • New Zealand’s NDC target of 50 per cent below 2005 levels by 2030 on a point year basis equates to 41 per cent on an emissions budget basis. This is a mere 5 per cent beyond the Climate Commission’s absolute bottom line.  
  • The Government’s creative accounting is compounded by the fact that New Zealand continues to measure its net reductions against an inflated baseline by using gross emissions in 2005. On a net-net basis, this target is more like 27-28 per cent below 2005 levels by 2030. 
  • Oxfam Aotearoa is calling the new NDC target a “scandal” as the vast majority of it is being met by offshore carbon credits – no country in the world is planning to rely on these to the extent that New Zealand is to meet their NDC. 
  • Ardern claims that this new NDC target is New Zealand’s fair share; however, it is not consistent with keeping global heating to 1.5 degrees under the Paris Agreement, let alone our fair share of effort 

Breaking Through Red Lines Report

Oxfam Aotearoa along with Oxfam Australia, and Oxfam in the Pacific have released a new report titled Breaking through red lines. Oxfam says that the report draws attention to gaps in the latest funds announced for overseas climate action by the New Zealand government. The funds will go towards supporting efforts to reducing emissions in the Pacific.

Oxfam in the Pacific’s Climate Justice Lead Ilisapeci Masivesi says that while funds to support community adaptation and mitigation are crucial, the report shows that climate change is causing unavoidable loss and damage, which needs distinct funds to help communities recover and restore what has been lost:

“New Zealand’s recent increase in support for adaptation in the Pacific is very welcome. However, while it is a huge help, it does not address the full picture of what we are experiencing in the islands.

“At COP26, it is crucial that governments around the world listen to the voices of those on the frontlines of climate change. Communities in the Pacific have been calling for loss and damage finance for 30 years.

“My country of Fiji is among the most disaster-prone in the world. To survive we are developing solutions that help farmers to restore their crops after a cyclone or villagers to shift their entire homes because of sea level rise. Communities are mostly paying for this themselves even though they did nothing to create the problems. Rich countries that are most responsible for causing climate change, including New Zealand and Australia, need to help more and support Pacific leadership that is calling for finance solutions to compensate these unavoidable impacts globally.”

The report, which outlines the loss and damage faced across the Pacific, includes the effects cyclones and flooding are having on Fiji. Despite efforts to adapt, climate-charged cyclones and flooding causes asset losses equivalent to five percent of GDP in Fiji each year. Cyclone Winston in 2016 caused damage equivalent to 20 percent of GDP. Oxfam says that these events are becoming more frequent and more intense pushing over 25,000 people into poverty every year in Fiji.

The report also shows that loss and damage is being experienced by Māori communities within Aotearoa, and that this needs a distinct response from the New Zealand government to uphold Te Tiriti o Waitangi.

Alex Johnston, Oxfam Aotearoa Campaign Lead said that New Zealand’s policy position ahead of COP26 on loss and damage focuses on avoiding and mitigating loss and damage through adaptation finance but not addressing the unavoidable loss that is already occurring:

“New Zealand’s position does not align with Pacific Island countries’ policy position. At COP26, making progress to mobilise sufficient funds to address loss and damage requires political will, as well as new and innovative sources of finance.”

“New Zealand and Australia have contributed funds to help set up insurance schemes to support Pacific Island communities recover from cyclones and extreme weather, but to be maintained these rely on payments from affected communities and on the private market to make a profit. Very little has been done to help communities cover the costs of slow-onset events like sea level rise, and what has been done is treated as adaptation – not loss and damage finance.

Johnston said, “Oxfam Aotearoa is calling for the New Zealand government to align with Pacific Island Countries’ positions on loss and damage at COP26, scale up financial support to existing loss and damage finance solutions in the Pacific, and develop distinct responses in the Climate Adaptation Act to the loss and damage that Māori experience on these shores.”

See the full report here.

Roadmap confirms rich nations will meet $100 billion climate finance target later than promised: Oxfam reaction

Rich nations yesterday published a Climate Finance Delivery Plan claiming that it will take until 2023 to meet their commitment to mobilise US$100 billion each year to support poorer nations to confront the climate crisis. In response, Jan Kowalzig, Senior Climate Policy Adviser at Oxfam said:

“This plan claims that rich nations will meet their target three years late, but conveniently fails to mention the money that poorer countries are owed for every year they fell short. This shortfall, which started to accumulate in 2020, will likely amount to several tens of billions of dollars. These are achievable amounts of money — governments have spent trillions on COVID-19 fiscal recovery packages, which show their ability to act in an emergency. This is an emergency.

“This roadmap also provides no robust commitment to increase the share of finance for adaptation, or to provide more support in the form of grants rather than loans. It is unacceptable that poorer countries that have done little to cause the climate crisis are being forced to take out loans to protect themselves from surging climate disasters like droughts and storms.

“It is difficult to verify the timeline presented in this plan because it does not reveal the underlying data and assumptions. Instead, it relies on the self-reporting of donor countries which allows them to grossly over-estimate the value of the support they provide. Oxfam has previously estimated that the finance targeted specifically at actions to combat climate change may be as little as a quarter of what is reported. 

“With the COP26 climate talks just a week away, time is running out for rich nations to build trust and deliver on their unmet target. This raises the stakes in Glasgow where wealthy governments must agree to more stringent reporting standards, on ensuring climate finance is directed to the right places and on a plan beyond 2025.”

 

Notes to editors

In 2009, rich countries agreed to increase climate finance to poorer countries to reach US$100 billion a year by 2020. At the Paris climate summit in 2015 (COP21), this goal was extended to last through to 2025, so that rich countries would provide US$600 billion in total over the period 2020-2025. Under the Paris Agreement, they agreed to negotiate a yet-higher amount that would kick in from 2025. 

During a two-day ministerial in July, convened by COP26 President-Designate Alok Sharma to discuss critical negotiating issues and climate actions ahead of COP26, Canada and Germany agreed to take forward a delivery plan for mobilising US$100 billion a year in climate finance.

Just one week ago, the New Zealand government announced an increase to $1.5 billion in climate finance over four years.

Oxfam Aotearoa along with Oxfam Australia and Oxfam in the Pacific

Oxfam Aotearoa reacts to Government’s $1.3b commitment to tackling climate change

Today’s announcement is a fantastic outcome for communities on the frontlines of climate change, Oxfam Aotearoa Executive Director Rachael Le Mesurier said in response to the $1.3 billion the Government has promised in climate finance over the next four years.

An Oxfam report in December last year found that out of 23 high-income countries, New Zealand’s level of climate finance funding ranks just 21st when calculated on a per capita basis based on 2018 figures. 

“This new commitment will go a long way to increasing New Zealand’s ranking. It would put Aotearoa New Zealand just within the range of what Oxfam concluded would be its fair share towards a collective goal to mobilise $100 billion a year for developed countries,” said Le Mesurier.

Oxfam Aotearoa estimated that New Zealand’s fair share of this goal was $301.5 million – $540 million per year, and this announcement would take New Zealand’s commitment to $325 million per year from 2022. However, given that the collective goal was due to be met by 2020, Le Mesurier said that New Zealand’s climate finance should continue to rise in future years within a growing aid budget.

“Pacific people on the frontlines of climate change – the farmers, the communities, and the families – have a greater opportunity to thrive, not just survive. If followed through, this will mean more resources for small scale farmers in Solomon Islands to adapt to sea-level rise; more renewable energy for rural communities in South East Asia; and a greater sign that Aotearoa is ready to support those most impacted by climate breakdown.

“It is a relief to hear that the funds for climate action will not squeeze out other crucial funding for other challenges our region faces, such as healthcare, social safety nets, and humanitarian relief.” 

Oxfam notes that climate finance is only one part of the grand bargain to push for all countries to keep global heating to within the Paris Agreement’s goal of 1.5 degrees.

Le Mesurier continued, “Now the government needs to follow through with an ambitious Nationally Determined Contribution (NDC) ahead of COP26. We want to see the Government pledge to reduce Aotearoa New Zealand’s emissions by at least two thirds by 2030. Right now, the draft Emissions Budgets and Emissions Reduction Plan won’t get us there. We need to see the Prime Minister follow through this leadership into the pending decision on our NDC. Matching our support overseas with sufficient action at home to reduce pollution at the source is just as important.”

Last year, as part of the Big Hearts campaign, Oxfam along with thousands of New Zealanders called for an increase to New Zealand’s overseas aid and climate finance budget.

“The collective action has shown that people across Aotearoa have big hearts to help our global family overcome climate breakdown. This commitment is part of who we are,” says Le Mesurier.

Alongside Oxfam, Pacific Climate Warriors Wellington spokesperson Mary Moeono-Kolio said: 

“We welcome the announcement of the government’s climate finance commitment and look forward to New Zealand following through with an ambitious 2030 target in our NDC with the policies needed reflected in the Emissions Reduction Plan.

“New Zealand must recognise that its domestic response will have implications on local Pacific communities as well as our families within the region. Today’s announcement is a good first step but if NZ truly considers itself part of the Pacific family, then we trust that they will do all that they can to protect their family. Pacific communities in New Zealand and across the region will be watching the government’s actions closely and ensuring that NZ contributes it’s fair share to keeping to 1.5 degrees at home.”