Colombian Environment Minister Susana Muhammad: "We are suffering penalties for attempting to initiate the energy transition"
** ripped from the headlines: Susana Muhamad's voice echoes at the climate summit**
Susana Muhamad, Colombia's Minister of Environment and Sustainable Development, was one of the most influential voices at last year's climate summit. Her country, a significant fossil fuel producer aiming to leave those behind, found itself in a complex financial predicament while navigating the transition.
In Baku, the focus being on finance, Susana's message advocating for reform of the global financial architecture carried significant weight. Previously president of COP16 on biodiversity in Cali and recognized by Time as one of the 100 most influential people in global climate action, she shared her insights with us before returning to her flood-ravaged country.
Q: Climate talks amidst global chaos
A: It's a tough landscape. With political landscape shifts, ongoing conflicts, resources are likely redirected away from the environment. However, the Paris Agreement imposes political responsibility to provide concessionary resources for developing countries.
"It's a paradox that renewables are tripling in the north, where the sun isn't, and not in countries where there's a need for energy access."
It's truly a paradox that after vowing to triple renewables at the Dubai summit, today they're being doubled and tripled in the global north, where the sun isn't shining, while countries with a dire need for energy access and an opportunity to bring vulnerable populations into the energy matrix, face no investment.
These incongruities form the heart of the discussion. Climate finance injustice is increasingly recognized, and hopefully, we can achieve a package to reinstate trust. But in a geopolitically complex world...
Q: If Trump withdraws, will Europe step up as a leader?
A: Yes, but Europe seems hesitant and resistant to assume leadership. China, an advocate of multilateralism, should step in as an ally for developing countries. However, other leaderships will need to emerge in this uncertain environment.
Q: Can China contribute to climate finance for the vulnerable?
A: China has voiced willingness to take on more commitments. With such a move, a renewed financing package can likely be generated here.
Q: Oil-producing countries and climate negotiations
A: A powerful oil lobby lurks here, casting a shadow over COPs. We must also discuss the decarbonization and economic transition of fossil fuel-dependent countries such as Colombia. The oil lobby stands as a significant factor, and it's crucial to address these issues.
R: The COPs need to be democratized. We need to let go of jargon-filled, technocratic language, invite those on the frontlines of climate crisis to participate, and ensure a greater number of voices can be heard. In Cali, we demonstrated that COPs can indeed be for and by the people.
R: Colombia has suffered from crisis after crisis without reprieve. Climate impact comes in many forms: droughts, fires, and floods. The constant strain on fiscal resources has put the country in an unsustainable position, exacerbated by the debt left by the COVID-19 pandemic.
Countries like Colombia face harsh realities as developing nations without the fiscal capacity to manage the climate crisis and advance development simultaneously. Not only is investment needed for climate transition, but debt-related concerns and losses and damages must be fairly accounted for.
Q: Is Colombia planning to diversify its economy?
R: Yes, a clear plan is in place to focus on industries that strengthen the country's resilience, generate added value, create jobs, and propel industrialization. We must avoid leaving vulnerable people behind in the climate transition, as this would risk handing power to climate change deniers.
Q: What are the financial obstacles preventing Colombia from leaving fossil fuels behind?
P: High debt levels, expensive access to capital, and low investment levels create a challenging economic landscape for transitioning away from fossil fuels. Colombia is working towards branching out with the support of an investment portfolio.
As Colombia serves as a test case for the global financial system's readiness to help emerging economies make the leap, it's essential to ascertain whether existing international mechanisms will suffice.
Q: What revisions are needed in the global financial architecture to provide fairer financing conditions?
To grant developing countries like Colombia affordable and accessible funding for transitioning away from fossil fuels, major reforms in the global financial architecture are essential:
- Scale up and boost the quality of financing
- Reform debt sustainability frameworks
- Foster inclusivity and good governance
- Strengthen global cooperation and transparent processes
- Tailor finance to fragile and vulnerable contexts
Without these reforms, developing countries risk being trapped in debt cycles and inhibited in the climate transition, hampering global efforts to combat climate change effectively.
- The Paris Agreement requires political responsibility to provide concessionary resources for developing countries, but it's a tough landscape as political shifts divert resources away from the environment.
- It's a paradox that renewables are tripling in the global north, where the sun isn't shining, while countries with a dire need for energy access face no investment.
- China has voiced willingness to take on more commitments for climate finance, which could potentially generate a renewed financing package.
- A powerful oil lobby is casting a shadow over COPs, and we must address the decarbonization and economic transition of fossil fuel-dependent countries like Colombia.
- To help developing countries like Colombia transition away from fossil fuels, major reforms in the global financial architecture are essential, such as scaling up and boosting the quality of financing, reforming debt sustainability frameworks, fostering inclusivity and good governance, strengthening global cooperation, and tailoring finance to fragile and vulnerable contexts.
