Context
At COP30, Parties requested the Presidency to convene the Xingu Finance Talks under the Veredas Dialogue and in consultation with the co-chairs thereof, as an annual high-level round table with a view to facilitating a cooperative exchange of views among all interested Parties and non-Party stakeholders, in particular academia, international financial institutions and the private sector, on practical solutions that address the challenges and opportunities in the implementation of Article 2, paragraph 1(c), of the Paris Agreement and its complementarity with Article 9 of the Paris Agreement.
For the inaugural Xingu Finance Talks, the COP30 Presidency proposes tackling two topics identified as priorities for advancing this agenda:
(i) Expanding fiscal space for climate investment
(ii) Reducing the cost of capital through risk sharing and guarantees.
The COP30 Presidency, in consultation with the co-chairs of the Veredas Dialogue, will convene a preparatory workshop on 11 October to deep-dive into the two proposed topics, whose outputs will inform the High-Level Roundtable.
Expected output
- Based on the preparatory workshop and the Roundtable discussion, identify potential practical solutions (e.g., on deployment, capacity- building, information) for further voluntary cooperation among interested UNFCCC Parties, international financial institutions, the private sector, and academia, on a voluntary and non-exhaustive basis, without prejudice to ongoing or future negotiations under the Convention and the Paris Agreement;
- Capture these elements in a Presidency informal summary to inform the continued work of the Veredas Dialogue, without creating any new obligation for Parties.
Programme
| 16:00 to 16:10 |
Welcome and framing |
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COP30 President, André Corrêa do Lago
COP30 CEO, Ana Toni
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| 16:10 to 16:20 |
Report back from the Workshop on Practical Solutions |
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Debra-Lee Swanepoel, Veredas Dialogue Co-chair
Ralien Bekkers, Veredas Dialogue Co-chair
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| 16:20 to 17:45 |
Discussion in roundtable format |
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Nominated high-level participants will be invited to react (2-3 min) to the following guiding questions, taking into account the report back from the Xingu Finance Talks workshop on practical solutions:
- Building on the preparatory discussions of the Xingu Finance Talks, in particular the workshop on practical solutions, what are the short-term concrete actions for expanding fiscal space for climate action and reducing the cost of capital through risk sharing and guarantees to be undertaken by international financial system stakeholders and Parties to the UNFCCC and the Paris Agreement respectively?
- What practical actions would Parties wish to see international financial system stakeholders deliver in the short-term?
- What practical actions would financial system stakeholders wish to see Parties to the COP and CMA undertake in the short-term?
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| 17:45 to 18:00 |
Conclusion and final remarks |
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COP30 President, André Corrêa do Lago
COP30 CEO, Ana Toni
Debra-Lee Swanepoel, Veredas Dialogue Co-chair
Ralien Bekkers, Veredas Dialogue Co-chair
(tbc) COP31 incoming Presidency
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Background
Objectives of the Xingu Finance Talks
- Support a positive feedback loop between the UNFCCC process and the international financial architecture by facilitating dialogue between national implementation priorities and the institutions shaping the international financial system, with a view to identifying practical solutions for making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development;
- Bring together governments (Ministries of Finance, Environment, Foreign Affairs, Central Banks and financial regulators) with key international financial system stakeholders, including international financial institutions, private sector, and academia, to exchange perspectives, identify shared challenges and explore areas for collaboration;
- Identify proven approaches that can be scaled up and concrete action areas that Parties and financial stakeholders can work on together to accelerate the implementation of Article 2.1(c) and its complementarity with Article 9, and support the collective achievement of the goals in Article 2.1(a- b) of the Paris Agreement.
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Concerns and safeguards for the implementation of Article 2, paragraph 1(c)
By decision 11/CMA.7 taken at COP30 in Belém, Parties decided to hold deliberations under the Veredas Dialogue on the implementation of Article 2, paragraph 1(c), of the Paris Agreement and its complementarity with Article 9 of the Paris Agreement, building on the Sharm el-Sheikh dialogue (2023-2025) and taking into account the concerns and safeguards outlined in paragraph 3 of the same Decision, as follows:
“3. Acknowledges various concerns and the need for safeguards raised by Parties in the context of the implementation of Article 2, paragraph 1(c), of the Paris Agreement, including:
(a) The need to pursue all three long-term goals of the Paris Agreement together, so that implementation of Article 2, paragraph 1(c), of the Paris Agreement will facilitate the collective achievement of the goals articulated in Article 2, paragraph 1(a–b);
(b) That Article 2, paragraph 1(c), of the Paris Agreement is complementary to and no substitute for the provision and mobilization of financial support to developing countries under Article 9 of the Paris Agreement;
(c) That efforts for making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development are nationally determined, taking into account country- driven strategies and the bottom-up nature of the Paris Agreement, respecting national sovereignty and taking into account different national circumstances, time frames and approaches of Parties, in particular developing country Parties, especially those that are particularly vulnerable to the adverse effects of climate change;”
(d) The need to ensure that collective efforts for and deliberations on implementing Article 2, paragraph 1(c), are undertaken in a facilitative, enabling, nonpunitive and non-prescriptive manner;
(e) The need to ensure transparency and to avoid creating an additional burden for Parties, including with regard to reporting and implementation;”
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