During the 4th Climate & Development Ministerial held as part of the Pre-COP29 meetings in Baku, His Excellency Abdulla Balalaa, UAE Assistant Minister of Foreign Affairs for Energy and Sustainability, delivered a decisive statement on the UAE’s unwavering commitment to strengthening global climate resilience. In his speech, H.E. Balalaa emphasized the need for increased access to climate finance for vulnerable nations, with a strong focus on aligning efforts with the Paris Agreement and the Sustainable Development Goals (SDGs).
Addressing an audience of international climate leaders, H.E. Balalaa outlined three critical priorities that have resonated globally, particularly following the UAE’s leadership at COP28.
Scaling Up Adaptation Finance
The first key issue raised by H.E. Balalaa was the urgent need to significantly boost adaptation finance for developing nations. He stressed that the current goal of doubling adaptation finance within the next 4 to 5 years falls far short of the required levels to support vulnerable countries adequately. “The current baseline is insufficient,” he stated, calling for more aggressive financial commitments to support adaptation strategies across developing regions.
Engaging Credit Rating Agencies
Turning to finance-related challenges, H.E. Balalaa addressed concerns regarding bias in the assessments made by credit rating agencies, especially in renewable energy sectors. He emphasized the importance of engaging these agencies within the COP framework, echoing the sentiment of the Bridgetown Initiative. Drawing from the UAE’s experience in renewable energy, he cited Masdar’s international success, emphasizing that perceived risks in emerging markets are often overstated.
H.E. Balalaa made clear that these systemic biases can obstruct vital funding for projects in regions that need it most, stressing that it is time to reevaluate how such ratings impact investment in renewable energy and climate resilience efforts.
Climate Finance for Vulnerable Nations
The third issue highlighted by H.E. Balalaa was the insufficient levels of climate finance currently available to Least Developed Countries (LDCs) and Small Island Developing States (SIDS), many of which are also battling conflicts and humanitarian crises. He praised recent innovative financing solutions like the Green Climate Fund’s $100 million deal with Somalia, suggesting that such initiatives could serve as a model for future efforts to deliver climate finance to high-risk, low-income nations.
Building Consensus for the Future
In closing his remarks, H.E. Balalaa urged world leaders to develop a global consensus on climate finance priorities for 2024 and beyond, emphasizing the need to ensure no country is left behind in the global fight against climate change. He called for a unified effort to identify top financial priorities, including new funding mechanisms and partnerships aimed at building resilience in the most vulnerable regions of the world.
The UAE’s continued leadership in climate diplomacy and sustainable development remains pivotal as the nation moves toward COP29 and beyond, aiming to foster stronger international cooperation on critical climate finance issues.