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Airline Economics Growth Frontiers, Dublin
We are delighted to be participating in the 2025 Airline Economics Growth Frontiers, Dublin conference one of the landmark events for the global aviation finance and leasing community.
Global | Publication | November 2022
COP27, the first African ‘Conference of the Parties’ is being hosted in Egypt this year and is particularly important for us as a continent as the event is providing a unique opportunity to shine the spotlight on Africa's climate vulnerability. In some instances it feels as though it’s the first time that there is real recognition that a ‘Just Transition’ – and I mean one that is supported by the global political community through commitments AND actions - is key to Africa's energy transition to renewables and away from fossil fuels.
Africa, the continent least liable for climate change but paying the heaviest price for its impact and the actions of the world’s biggest economies, is demanding a seat at the table of this year’s event being in a unique position to demonstrate the risks and costs of not acting on climate change. World leaders need to accept that only a material amount of ‘loss and damage’ financing, international cooperation and, implementation, can set us on a course to overcome one of the greatest challenge facing our times.
I’ve heard the comments of a few prominent leaders from the developed world, quipping, ‘Why should we pay for Africa’s climate crisis?’ and ‘We don’t have the money for loss and damage financing’, but these comments are spoken from the mindset that dominated international relations of the past, that is, ‘each country for itself’. However, we share a planet and we will share our futures. The mindset of the past has put us in a very precarious situation and it isn’t going to work in the future. The legacy roadmaps that got us to where we are today, need updating and adapting to ensure a future that is just for all of us, not just those in the developed world.
I’m in attendance at this year’s event and as it got underway, there seemed to be a greater sense of urgency in the air as many speakers outlined the devastating impact of climate change seen this year alone. This was followed by a 48-hour stretch of consultations between parties adding relevant points of discussion to the agenda.
With that, the United Nations Framework Convention on Climate Change (UNFCCC) Executive Secretary Simon Stiell warned, "The real test will be the quality of the discussions that will take place over the next two weeks and the eventual outcomes."
I couldn't agree more and would add that the outcomes must be action focussed.
African nations have been affected by climate change, bearing the brunt of climate-induced disasters without playing equal roles in the cause. Compared to wealthy countries, Africa contributes a minuscule amount of carbon emissions, as G20 nations account for 80% of the total. Of course, Africa's pertinent point of interest was receiving financial aid from G20 countries.
Macky Sall, President of Senegal and Chairperson of the African Union, reiterated that current levels of finance for adaptation programmes fall short of Africa's needs. He, too, spurred on developed nations to honour their financing commitment stating, "those who pollute more have to pay more".
Not only is financial aid critical in moving Africa's energy transition forward, but it is not very meaningful without implementation, a second essential key point raised during consultations. Reports suggest that implementing current commitments will keep the world on course to limit the average global temperature increase to 1.7°C. The sufficiency of this goal is open for debate, but it is clear that the longer the delay in implementation, the worse it will get.
Simon Stiell outlined these critical points for action:
Speaking on behalf of Africa, Zambia said that adaptation is a matter of survival for the continent and must get upscaled with a substantive GGA (Global Goal on Adaptation) outcome. They and other nations called for the fulfilment of the $100b goal to implement adaptation. Implementation is paramount as climate disasters wreak havoc across the continent unchecked while policymakers fail to move on proposals, some a decade in the making.
On day two, over one hundred heads of state and government got locked into intergovernmental negotiations, with talk of implementation scarce.
The overarching goal must be to build sustainable momentum for climate change action. Heads of government negotiated on how they could work together under the Paris agreement (Article 6.2) to achieve much-needed results. The theme 'Together for implementation' introduced by Egyptian president Abdel Fattah El-Sisi echoes the opening statements made on day one - we need action.
He emphasised that parties must deliver practical roadmaps that clearly explain the plan to reduce carbon emissions while prioritising the needs of emerging nations, specifically in Africa.
Samia Suluhu Hassan, President of Tanzania, adequately stated that science proves that correctly stewarding our environment will positively impact a nation's prosperity. However, the challenges faced in countries like Tanzania places them at a disadvantage when raising funds necessary to fight climate change. The opportunity cost is too high. Other African leaders raised similar concerns calling for the 'time of action' to commence.
On day four, negotiators met from morning to night, discussing various finance-related issues and cooperative implementation plans under the Paris Agreement (Article 6).
However, parties expressed regret that the Standing Committee on Finance (SCF) could not agree on an executive summary for its $100b goal report. One developing country lamented that the lack of predictability and inadequate support, not the lack of projects, is the issue for the implementation failure.
Parties should express stronger accountability and transparency of the amount and the nations with outstanding pledges to remove barriers to much-needed action. Or will the statement by Leah Namugerwa, a youth climate activist, echo in eternity when she warned, "they will be remembered as doing a lot of nothing while in power."
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We are delighted to be participating in the 2025 Airline Economics Growth Frontiers, Dublin conference one of the landmark events for the global aviation finance and leasing community.
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