Laudato Si’, nearing its 10th year, recognises the deep connections between environmental, social, and economic systems, and calls for global change that promotes greater care for our common home.
In alignment with this direction, Caritas Australia launched its ‘Weathering the Storm’ report at COP29. This report found that global climate finance contributions to the Pacific have fallen short by $1bn USD annually. As a result, many Pacific countries have taken on loans to cover the costs of climate adaptation, mitigation, loss, and damage, and are now struggling to service huge volumes of debt to external creditors.
In short, COP29 fell short of addressing this unjust dynamic. Here’s what you need to know about the conference, what went wrong, and how we can work to support climate vulnerable communities despite this setback.
What is COP?
COP (Conference of the Parties) is an annual meeting where world leaders review progress on climate action. These gatherings have led to major agreements like the Paris Accord, which set the goal of limiting global warming to 1.5°C. Crucially, these agreements are grounded in a mutual understanding that wealthier nations - responsible for much of the world’s emissions- will provide financial support to vulnerable countries facing the brunt of climate impacts.
Why was COP29 important?
This year’s meeting was dubbed the “finance COP,” as nations were expected to set new funding targets for climate adaptation, mitigation, and loss and damage. The aim? To ensure vulnerable nations have the resources to transition to greener economies and adapt to the realities of a warming planet.
What happened at COP29?
While leaders agreed on a $1.3 trillion annual climate finance goal by 2030, only $300 billion in actual commitments were made. This leaves a staggering $1 trillion gap. Even worse, much of this funding may come as loans rather than grants, increasing debt for low-income countries.
For context: in 2009, nations pledged $100 billion per year by 2020. It took until 2022 to meet this goal - and even then, much of it came in forms that worsened debt rather than alleviating it. In 2022 that 100bn amounted to 0.1% of global GDP which sat at 100 trillion.
Why does this matter?
Failing to deliver adequate, high-quality climate finance undermines trust and cooperation between wealthy and vulnerable nations. Many climate-vulnerable countries walked out of the finance discussions at COP29, frustrated by what they see as broken promises and financial injustice. This is a stark reminder of how global inequalities - highlighted in Laudato Si’ - persist in climate negotiations.
Caritas Australia’s Weathering the Storm report shows how this impacts the Pacific. Nations like Fiji and Tonga are already struggling with debt levels that hinder their ability to fund basic services, let alone investments into climate adaptation. Much of this debt is owed to wealthier nations that have pledged to help.
Is there any good news?
There were some positive steps. The Australian government committed to the Loss and Damage Fund and announced investments in renewable energy for Pacific nations. These are important contributions that operate as grants, not profit-making loans. The focus on renewables should also be commended as it has the potential to be income generating for Pacific countries, so it can build economic and climate resilience in the region at the same time.
What needs to happen next?
The Church, through initiatives like the upcoming Jubilee 2025 campaign, reminds us of our moral imperative to care for creation and act in solidarity with the world’s most vulnerable. Collectively we must push global leaders to shift from a reliance on privatised, profit-driven solutions to meaningful financial support, to ensure justice and equity in climate action.
By supporting Caritas Australia, you are already making an impact as you have more than likely supported programs that build climate resilience into communities around the world.
To support climate vulnerable communities via Caritas Australia’s programs, click the link below or call 1800 024 413 toll free.
