Forests, finance, and justice: The missed opportunities of COP29
12 December 2024
The recent conference of parties to the UN Framework Convention on Climate Change (COP29) in Baku, Azerbaijan, raised high hopes for transformative action to address the escalating climate crisis. Its outcomes largely fell short, however. For developing nations and vulnerable communities, the conference underscored persistent gaps in global climate justice, especially in delivering sufficient resources to enable sustainable development and resilience.
A glaring shortfall was the inability to establish an effective New Collective Quantified Goal (NCQG) for climate finance. While developed nations, including the European Union, pledged to mobilize US$300 billion annually – three times the previous US$100 billion mandate – far below the US$1.3 trillion experts identify as the bare minimum needed. This gap highlights the persistent unwillingness of wealthier nations to meet their historical responsibilities and provide adequate support for those most vulnerable to climate impacts. Without sufficient funding, many countries in the Global South face considerable challenges in addressing the dual priorities of sustainable development and climate mitigation.
A significant milestone was the finalisation of global carbon market rules under Article 6 of the Paris Agreement, after years of negotiations. These mechanisms, which allow countries to trade emissions reductions, have the potential to unlock new resources for climate action. Article 6.2 regulates bilateral carbon trading between nations, while Article 6.4 establishes a global crediting mechanism for emissions reductions. However, concerns remain that, without stringent safeguards, these mechanisms could prioritise financial transactions over real emissions reductions and allow developed countries to use market-based solutions as a substitute for stronger domestic action. Moreover, without explicit recognition of the rights of Indigenous Peoples and Local Communities (IPLCs), reliance on carbon markets risks further marginalising these groups. Land-thirsty carbon businesses and projects may seek to expand their concessions, often at the expense of IPLCs, undermining their livelihoods and cultural heritage. For countries such as Indonesia, where safeguarding forests and cutting emissions are crucial, these markets must act as a supplement to – not a replacement for – strong policies that protect ecosystems, IPLCs, and broader communities.
COP29 also disappointed when addressing the role of nature and ecosystems. Mentions of biodiversity and the centrality of nature in climate resilience were actively removed from key texts. This intentional omission is troubling, as healthy ecosystems are vital to mitigating climate impacts and adapting to them. Forests briefly came under the spotlight as the Forest and Climate Leaders’ Partnership (FCLP) reported progress on its initiatives. Over the first three years of the Global Forest Finance Pledge, US$10 billion of the pledged US$12 billion has been mobilised for conservation and restoration. Yet even this effort falls short of the resources needed to combat deforestation and ecosystem degradation on a global scale.
Indonesia and the Paris Agreement
Indonesia, home to the world’s third-largest tropical rainforest, has not yet joined the FCLP, a missed opportunity for collaboration and resource mobilisation. Its Enhanced Nationally Determined Contribution (NDC), submitted in 2022, includes targets for an unconditional 31.89% emissions reduction; 43.2% with international support. While this marks progress, it remains insufficient to align with the Paris Agreement’s 1.5°C goal. Indonesia has emphasised emissions reductions in the Forestry and Other Land Use (FOLU; Indonesia’s NDC separates agriculture from this) and energy sectors, but overlapping policies and enforcement gaps hinder progress. Without more cohesive strategies, the country will likely miss its Net Sink FOLU 2030 target.
At COP29, the Indonesian delegation, led by Hashim Djojohadikusumo, the brother of President Prabowo Subianto, outlined plans to expand renewable energy capacity, reforest degraded lands, and strengthen carbon trading. The delegation emphasised the addition of 75 gigawatts of renewable energy over the next 75 years and the reforestation of 12.7 million hectares of degraded land. While these initiatives demonstrate intent, they fail to address the root causes of deforestation and ecosystem degradation. Restoration efforts are essential but cannot compensate for ongoing deforestation, including planned deforestation for Food Estate, a priority of the current government. Tackling these structural issues, including overlapping policies and weak enforcement, is critical to achieving Indonesia’s climate goals.
Indonesia must place climate justice at the core of its climate policies. IPLCs, who are often the stewards of the country’s forests, are disproportionately affected by climate change and deforestation. Their rights and needs must be prioritised in climate strategies to ensure equitable and inclusive outcomes. Policies – domestic and international/EU – must protect these communities, who play an essential role in managing ecosystems, while delivering tangible benefits and recognising their contributions.
Protecting Indonesia’s rainforests is not just a national priority but a global responsibility. These forests, vital for carbon sequestration and biodiversity, play a key role in regulating the Earth’s climate. International collaboration and adequate financing are essential to enable Indonesia to balance its development needs with the imperative to protect its natural heritage. The US$10 billion mobilised through the Global Forest Finance Pledge is a step forward, but it pales in comparison to what is needed to address the challenges Indonesia and other forest-rich nations face.
Solidarity is essential
The inability of COP29 to deliver sufficient climate finance underscores the urgency of addressing the funding gap. Countries such as Indonesia require robust support to implement ambitious climate actions. Without adequate resources, they are left grappling with the difficult trade-offs between economic development and environmental protection. This is not only an issue of fairness but one of effectiveness: without the necessary funding, global efforts to mitigate and adapt to climate change are undermined.
COP29 highlighted the critical role of international solidarity in tackling the climate crisis. Developed nations must step up their commitments, both in terms of financial contributions and technical assistance, to support developing countries in their transitions to low-carbon, climate-resilient economies. Meanwhile, countries such as Indonesia must strengthen their policies, halt deforestation, and demonstrate greater ambition in their climate pledges.
Ultimately, the outcomes of COP29 reveal that the fight for climate justice remains far from over. For nations in the Global South, including Indonesia, sufficient funding is essential to chart a sustainable development path that reduces emissions, protects ecosystems, and prioritises the needs of vulnerable communities. Without this support, the promise of climate justice will remain unfulfilled, and the world will face the devastating consequences of inaction.
The time for bold, collective action is now, and it must start with ensuring that the resources needed to combat the climate crisis are mobilised at scale and delivered with urgency.
Nadia Hadad, Executive Director at MADANI Berkelanjutan
Categories: News, Forest Watch, Partner Voices, Indonesia