COP31: Fossil Fuel Transition and Climate Finance

GS-III – Environment and Ecology | Climate Change | International Environmental Governance | Climate Finance

Why in News?

• COP31: The next United Nations climate change conference, COP31, will be held in Antalya, Türkiye, in November this year.
• Türkiye: Türkiye will host the event, with its Minister of Environment Murat Kurum serving as COP31 President.
• Australia: Australia will oversee the negotiations process, with its Minister for Climate Change and Energy Chris Bowen as Vice-President of COP31.
• Novel Arrangement: This is a novel arrangement, a result of both Australia and Türkiye not being willing to concede their demand to host, and where both countries share crucial responsibilities.
• Pre-COP: A pre-COP event will be held in Fiji on October 5-8, where Pacific Island countries and Australia will discuss preparations for the main event, including what to negotiate.

Domestic Fossil Reliance

• Fossil Fuel Use: Both Türkiye and Australia are heavy users of fossil fuels.
• Australia: Australia is the world’s third-largest fossil fuels exporter, after Russia and the U.S.
• Energy Needs: Australia and Türkiye rely on coal, gas, and oil to generate respectively around 90% and 80% of their energy needs.
• Coal Mine: Australia came under fire from climate groups for approving the expansion of a coal mine.
• Decarbonisation: Various industries in Australia, including iron-ore mining, are trying to decarbonise by investing in hybrid or electric heavy machinery.
• Electric Vehicles: Local governments are pushing for electric vehicles, which recently overtook petrol car sales for the first time in Australia.

COP31 Priority Agenda

• Electrification: The primary goal at COP31 is a target to electrify industry and vehicles and in turn “to raise the share of final energy demand met by electricity from just over 20% today to 35% by 2035.”
• Oceans and Seas: ‘Oceans and Seas’ are also a priority agenda.
• Blue Dialogue: Türkiye hosted a ‘Blue Dialogue’ on September 10-11, whose focus was on protecting marine resources.
• Fossil Fuels: None of the themes listed as a priority for the event make direct reference to transitioning away from fossil fuels.
• Türkiye: Türkiye is working to augment recycling and so eventually reduce methane emissions.
• Zero Waste: Türkiye has listed ‘zero waste and a circular economy’ on the COP31 priority list.
• Togg: The fortunes of a local EV brand, Togg, has ballooned so much that the government hopes it will herald a new era in the automobiles market.

Loss and Damage Financing

• COP30: At COP30 in Belém, Brazil, last year, the European Union pushed for a “fossil fuel roadmap” to help countries worldwide transition away from fossil fuels.
• Developing Countries: Observers said it took the focus away from developing countries’ calls to triple adaptation finance and developed countries’ resistance to that.
• UNFCCC: Most countries involved in the UN Framework Convention on Climate Change (UNFCCC) did not oppose the call for the “fossil fuel road map” at COP30.
• India: India did not oppose either, on the condition that it incorporate the principle of common but differentiated responsibilities and that countries are not expected to follow uniform energy transition pathways.

Momentum for Fossil Fuel Transition

• Transitioning Away from Fossil Fuels: In April this year, the first conference on ‘Transitioning Away from Fossil Fuels’ was held in Santa Marta in Colombia, co-hosted by Colombia and the Netherlands.
• Second Conference: The second conference is scheduled for 2027, to be co-hosted by Tuvalu and Ireland.
• Pressure on COP31: Given such momentum, there is likely to be pressure on the COP31 Presidencies to include fossil fuel language as part of the agenda.
• Nepal Floods: The catastrophic floods in Nepal on August 26, boosted no doubt by climate change, and the damage they wrought are also set to add momentum to both mitigation action and loss and damage financing.

Conclusion

• COP31: It remains to be seen whether countries will introduce new agenda items at COP31 and what those items will be.
• Fossil Fuel Transition: There is likely to be pressure on the COP31 Presidencies to include fossil fuel language as part of the agenda.
• Climate Finance: Loss and damage financing and the broader climate finance question remain important issues.
• Energy Transition: Electrifying buildings, transport and industry is the flagship thematic priority of the COP31 Presidency’s Action Agenda.

UPSC Mains Practice Question

Q. COP31 is being held under a novel Türkiye-Australia arrangement amid debates over fossil fuel transition, electrification, loss and damage financing and climate finance. Discuss.