Daily News Analysis- 26-10-2024

Severe budget crisis sparks concerns over future of UN-led climate dialogue

UN Framework Convention on Climate Change (UNFCCC) Budget Shortfall

  • The UNFCCC, the leading UN body on climate change, is facing a severe budget shortfall of at least 57 million euros for 2024.
  • This funding gap could potentially impair international climate dialogue.
  • The UNFCCC’s total 2024-25 budget is 240 million euros, with about half of that expected to be allocated for this year.
  • The UNFCCC’s member countries are expected to contribute funds to the budget, which includes a core fund, a supplementary fund, and another voluntary fund to help diplomats from poorer countries attend UN climate negotiations.
  • Countries such as Japan and Germany have exceeded their payment obligations, while the U.S. and China have not yet met theirs.
  • The budget shortfall has forced the UNFCCC to curtail activities, including reducing operating hours at its headquarters and cancelling regional “climate week” events.
  • The UNFCCC has received 63 million euros ($68 million) in contributions for 2024 as of this month.
  • The funding gap could undermine UN climate negotiations, as national governments are seeking trillions of dollars in climate investments.
  • The UNFCCC confirmed that there is a 2.04 million euros shortfall in the fund meant to pay for hundreds of diplomats to attend climate talks.
  • The UNFCCC has come to rely increasingly on voluntary donations, with some countries requesting a bigger core budget and others not fully implementing recommendations made by UN auditors.