COP29 week two: Key updates on ASEAN’s climate actions

The UN Climate Summit (COP29) enters its second week, with climate finance progress taking center stage. (Photo: IRENA)

As the 29th United Nations Climate Change Conference (COP29) enters its second week, coinciding with the G20 summit, attention is focused on whether this alignment can foster consensus on climate finance and accelerate efforts by ASEAN countries and other developing nations to combat climate change. RECCESSARY continues to track climate actions in Southeast Asia, bringing you the latest updates from COP29.

Philippines pushes for increased climate finance to $1.3 Trillion

On Nov. 18, the Philippine Department of Finance issued a press release stating that Chief of Staff Maria Luwalhati Dorotan Tiuseco, representing Finance Secretary, is leading urgent negotiations on the New Collective Quantified Goal (NCQG) to expand the climate finance scale for vulnerable countries.

In the High-Level Ministerial Dialogue on Climate Finance, Tiuseco stated, " We have been given an unmissable opportunity to shore up the global climate finance war chest, which for many vulnerable countries is a matter of life and death. That is why the Philippines is aggressively pushing for bold actions and sustained, increased financing once and for all for countries that are perpetually on the frontlines of catastrophic typhoons."

The press release mentioned that within one month, the Philippines was hit by six typhoons, which has prompted the government to push for an initial climate finance target of $1.3 trillion annually to meet the urgent needs of developing countries in adaptation, mitigation, and loss and damage.

Philippines calls for increased climate finance target during COP29. (Image: MOF Philippines)

According to the United Nations Environment Programme (UNEP), the financial gap caused by climate impacts is estimated to range from $187 billion to $359 billion annually. A team of experts endorsed by the UN pointed out in a recent report that by 2035, at least $1.3 trillion per year will be needed globally to help developing countries combat climate change.

Before this, countries like Saudi Arabia and other Arab nations hoped for an annual financing scale of $1.1 trillion, with $441 billion provided by developed countries. Meanwhile, India, African nations, and other small island countries have differing expectations regarding the contribution of developed countries.

UNFCCC Executive Secretary Simon Stiell said at a press conference on the 19th that “Climate finance is not charity. It is 100 percent in every nation’s interest to protect their economies and people from rampant climate impacts. So, countries must wrap up less contentious issues early in the week, so there is enough time for the major political decision.”

Malaysia leads push for ASEAN regional carbon market

The ASEAN regional carbon market is gradually taking shape. During the COP29, the Malaysian Carbon Market Association (MCMA) signed a memorandum of cooperation with carbon-related associations from Indonesia, Singapore, Thailand, and ASEAN, committing to advance the ASEAN Common Carbon Framework (ACCF) to enhance regional carbon market liquidity.

Malaysian Minister of Natural Resources, Environment, and Sustainability (NRES) Nik Nazmi Nik Ahmad, who attended the signing ceremony, stated, "This is a crucial step in advancing carbon market within ASEAN which allows us to build an integrated, efficient, and credible carbon market fostering regional cooperation and accelerating low-carbon investments."

Malaysia will assume the role of ASEAN Chair in the coming year, with the goal of developing a regional carbon neutrality strategy. The ACCF was formally introduced by Bursa Malaysia at the inaugural ASEAN Carbon Forum in October, and the Malaysian Carbon Market Association was established to oversee its implementation.

The ACCF aims to reduce international carbon trading barriers, provide regional carbon trading standards, increase cross-border cooperation opportunities, and build capacity through training and knowledge-sharing to strengthen the carbon capabilities of member countries, collectively advancing ASEAN’s transition to a low-carbon society.

ASEAN signs a memorandum of collaboration with representatives from four countries. (Photo: MCMA)

Malaysia is positioning itself as a leader in the fight against climate change within ASEAN. In addition to launching the ACCF, Nik Nazmi announced that Malaysia will lead ASEAN countries in making their voices heard at the upcoming COP30 in Brazil, ensuring that the region's priorities are recognized globally.

Indonesian carbon tech startup Fairatmos describes the emergence of the ACCF as a game-changer for the carbon market, laying the foundation for deeper regional cooperation. The startup has outlined three key priorities for developing the ASEAN market:

1. High Integrity Framework: Transparency and trust are critical in the ASEAN market. ASEAN can become a major supplier of high-quality, verified carbon credits by adhering to high standards of commitment.
    
2. ASEAN-Specific Methodologies: ASEAN’s vast forests present significant potential for the development of avoidance credits. However, this potential is often underestimated. The region must support methodologies that prioritize the development of these credits to meet climate goals.
    
3. Unlocking Financing: Innovative financing solutions can help scale carbon projects in ASEAN. By leveraging funds from various countries and blended finance, risks can be effectively reduced, creating successful, scalable projects with strong development potential.

Indonesia speaks for developing countries for fairer climate finance

Amid discussions of climate justice, Indonesia has called for a fairer approach to tackling the challenges of climate change, stressing the importance of climate finance provided by developed nations to developing countries. Indonesia has pledged that with international financial support, its Nationally Determined Contribution (NDC) emissions reductions will exceed 43%.

Ravindra Airlangga, Deputy Chair of the Indonesian House of Representatives' Inter-Parliamentary Cooperation Group (BKSAP), delivered a speech at a side event organized by the Inter-Parliamentary Union (IPU) during COP29. “We expect innovative approaches to accelerate the transition to sustainability and protect developing countries from the worst impacts of climate change,” he said.

Indonesian MP Ravindra Airlangga (right) calls for climate justice at a side event during COP29. (Photo: BKSAP)

"As much as 79 percent of global CO2 emissions come from several developed countries where developing countries are the most affected parties by climate change,” Airlangga said. Therefore, It is urgently need international financial assistance,". According to the United Nations Development Programme (UNDP), Indonesia accounts for 3.11% of global carbon emissions.

To mitigate the effects of climate change, the Indonesian government has set an NDC emissions reduction target of 31.89%, but with international financial support, this could increase to 43.2%. Airlangga highlighted that the newly discussed collective quantified goal (NCQG) is expected to mobilize $5.4 trillion annually by 2030.

In addition to funding, Airlangga also stressed the importance of incentivizing public sector participation in climate change solutions and promoting the concept of Ecosystem as a Service globally.

Developing countries contribute a relatively small share of global carbon emissions but are on the frontlines of climate change disasters. (Photo: Adam Cohn／Flickr)

Fighting climate change requires long-term and consistent policy. Febrian Alphyanto Ruddyard, Deputy Minister of Indonesia's Ministry of National Development Planning, stated in a different panel discussion hosted by the World Resources Institute (WRI) and the Indonesian government that Indonesia’s low-carbon and climate-resilient development plans are aligned with the country’s broader national development goals.

Representatives from the Ministry of Environment and Forestry and the Ministry of Oceans and Fisheries also participated in the session, discussing Indonesia's contributions to green carbon and blue carbon economies.

Estefania Ardila, Deputy Director of the National Engagement Unit at the NDC Partnership, shared the organization's approach to supporting emissions reductions based on the specific needs of countries and assisting developing nations in setting concrete milestones to accelerate progress toward net-zero targets.

Source: ANTARA, UNDP, AZERTAC, Bernama, Argus Media, NRES, Bangkok Post, PNA, Reuters, Philippine Daily Inquirer