World's biggest climate fund ramps up investment plans
The Green Climate Fund's (GCF) plan to release about $1.2bn (R21bn) for 17 projects mostly in Asia and Africa follows approval by shareholders, including the US, at a meeting this week against a fractious political backdrop that has seen development aid slashed.
Official development assistance could fall 17% this year after a 9% drop in 2024, the Organisation for Economic Co-operation and Development said in a June report, led by hefty cuts to US aid by President Donald Trump.
'At a time when collective climate action is more needed than ever, GCF is stepping up to deliver on its mandate,' said GCF co-chair Seyni Nafo.
The GCF disbursement includes $227m (R4bn) for an initiative to expand green bond markets in 10 countries. Green bond markets are where companies raise capital for projects that limit climate change or otherwise benefit the environment.
In South Asia, it will invest $200m (R3.5bn) in the India Green Finance Facility to scale renewables and energy efficiency, while in East Africa it will invest $150m (R2.6nn) in the food system to support nearly 18-million people.
All the projects will bring the GCF investment portfolio to $18bn (R315bn) across 133 countries. So far, countries have pledged $29.9bn (R523bn) to the GCF and paid in $21bn (R367bn)
The GCF board also approved plans to speed up its work with partner organisations which can include accredited entities such as other multilateral lenders and direct access entities in developing countries.
From an average 30 months to accredit a direct access entity, the aim is to shorten the time to nine months or less by overhauling its procedures, including carrying out much of the due diligence at the project stage.
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Daily Maverick
42 minutes ago
- Daily Maverick
Africa must help steer the world away from deep-sea mining
Unilateral deep-sea mining, such as that planned by the Trump administration, could have grave impacts on Africa. The continent has a vital role in global ocean stewardship and safeguarding humanity's shared future. Under President Donald Trump, the US' rush for critical minerals spans Ukraine, Greenland, the Democratic Republic of the Congo (DRC), and now the last untouched frontier – the deep sea. A recent White House executive order aims to position the US as a 'global leader in seabed mineral exploration and development both within and beyond national jurisdiction'. It involves extracting critical minerals such as cobalt, copper, manganese, nickel and rare earth elements from the ocean floor through dredging, hydraulic systems and subsea drilling. Seabed or deep-sea mining (DSM) risks irreversible harm to ocean ecosystems. It involves extracting critical minerals such as cobalt, copper, manganese, nickel and rare earth elements from the ocean floor through dredging, hydraulic systems and subsea drilling. These ventures do not align with Africa's long-term economic and environmental priorities. As the global debate intensifies – led by the United Nations' International Seabed Authority (ISA) – ocean governance is being reshaped. African countries must engage collectively or risk being sidelined. The short-term economic benefits for miners are apparent, but several countries and stakeholders are concerned with the industry's long-term financial viability and environmental impact. This has stalled the finalisation of the ISA Mining Code to govern DSM activities, which has been in development since 2014. During the March 2025 ISA Council meeting, Sierra Leone, on behalf of the African Group, highlighted key concerns about DSM commencing before the code is finalised. These include potential impacts on land-based mining economies and the need to bolster the economic assistance fund. There is also a need for environmental thresholds, effective compliance and enforcement mechanisms, robust anti-corruption and transparency measures, and a fair financial model for benefit sharing. The US's planned exploration outside its waters goes against the 'common heritage of humankind' principle in the United Nations Convention on the Law of the Sea (UNCLOS). The principle requires collective global governance of seabed resources. Although the US is neither an ISA member nor a party to UNCLOS, the country has generally observed the treaty as customary international law. However, Trump's executive order enables unilateral exploitation of the global seabed. Trump's global seabed 'exploitation' It was issued barely a month after Canadian firm The Metals Company (TMC) announced it would circumvent the ISA by applying for mining licences under a US mining code. In April, TMC USA filed for licences under the 1980 US Deep Seabed Hard Mineral Resources Act to mine in the Pacific Ocean's Clarion-Clipperton Zone. Trump's executive order risks undermining decades of multilateral efforts to protect the ocean. According to ISA Secretary-General Leticia Carvalho, 'Any unilateral action threatens not only this carefully negotiated treaty (UNCLOS) and decades of successful implementation and international cooperation, but also sets a dangerous precedent that could destabilise the entire system of global ocean governance.'' The executive order has also drawn criticism from China (which shares DSM interests), France and the European Commission for its apparent violation of international law. Even before the order was issued, 33 developed and developing countries called for a precautionary pause on DSM until scientific certainty ensured its safety. June's UN Ocean Conference (UNOC3) in France saw global opposition to DSM grow, with 37 countries supporting a moratorium or precautionary pause. UN Secretary-General António Guterres warned that the deep sea couldn't become the 'Wild West'. Although Trump's executive order faces strong global pushback, African countries have been less vocal than other regions. 'African states should advocate for science-based decision-making and address environmental knowledge gaps to protect shared marine resources,' says Dr Kirsty McQuaid, a researcher at the Nelson Mandela University Institute for Coastal and Marine Research and African Network of Deep-water Researchers coordinator. Altered seafloor topography Addressing knowledge gaps is vital. A recent study in the Clarion-Clipperton Zone revealed that more than 44 years since DSM experiments in 1979, mining equipment tracks, sediment plumes and altered seafloor topography remain. Biodiversity was also impacted, particularly among slow-growing and endemic species. Scientists continue to sound the alarm on the irreversible harm posed to marine ecosystems. Forecasts suggest that DSM could damage African economies, particularly in land-based mineral-exporting countries. Seabed minerals could undercut the value of land-based exports like cobalt, nickel and manganese, which are major sources of revenue for several African countries. The industry could also depress terrestrial mineral prices by flooding markets with seabed-derived alternatives. The DRC, Eritrea, Gabon, Madagascar, Mauritania, Namibia, Zambia and Zimbabwe are especially vulnerable. Zambia and the DRC derive over half their export earnings and a substantial share of gross domestic product from these metals. African manganese producers such as South Africa, Ghana and Côte d'Ivoire may also be affected. Ocean governance and maritime security expert Dr Ifesinachi Okafor-Yarwood told ISS Today that the US executive order 'will likely increase competition for seabed exploitation and risk further ocean degradation'. This would undermine social equity and ecological conservation, 'which is concerning given the vital role of marine fisheries in the livelihoods of millions of Africans. Africa must establish a clear stance on DSM'. Professor Edwin Egede, an expert on international law of the sea and member of the ISA Legal and Technical Commission, agrees. 'Any unilateral appropriation of the deep seabed area and the resources therein contravenes both UNCLOS and customary international law.' He says 'Africa should raise its voice and uphold its legacy in global ocean governance, protect the common heritage of humankind developed by a rules-based international order, and ensure international cooperation and equity guide decisions shaping humanity's shared future.' African protective options African states have two possible options. First, they could ask the International Court of Justice and the International Tribunal for the Law of the Sea to clarify states' obligations under the 'common heritage of mankind' principle. In 2011, the tribunal affirmed that sponsoring states must comply with UNCLOS environmental standards and due diligence obligations – a decision that discourages unilateral or domestic licensing. Second, ahead of the mid-July ISA General Assembly meeting, African countries could advocate for a DSM pause to ensure environmental safeguards and address regulatory gaps. The momentum achieved at UNOC3 for the High Seas Treaty – with 50 of 60 required ratifications reached – faces serious threats from the rise of unilateral DSM activities, which weaken ocean governance. Africa has a vital role in global ocean stewardship and safeguarding humanity's shared future. By advocating for stringent environmental safeguards and equitable benefit-sharing in ISA policy discussions, African countries can prevent DSM from compromising the health of our oceans and the rights of future generations. DM
IOL News
3 hours ago
- IOL News
BRICS nations to denounce Trump tariffs
BRICS leaders meeting in Rio de Janeiro from Sunday are expected to decry Donald Trump's hardline trade policies, but are struggling to bridge divides over crises roiling the Middle East. Image: AFP BRICS leaders meeting in Rio de Janeiro from Sunday are expected to decry Donald Trump's hardline trade policies, but are struggling to bridge divides over crises roiling the Middle East. Emerging nations representing about half the world's population and 40% of global economic output are set to unite over what they see as unfair US import tariffs, according to sources familiar with summit negotiations. Since coming to office in January, Trump has threatened allies and rivals alike with a slew of punitive tariffs. His latest salvo comes in the form of letters due to be sent starting Friday informing trading partners of new tariff rates expected next week on July 9. Diplomats from 11 emerging nations, including Brazil, Russia, India, China and South Africa, have been busy drafting a statement condemning the economic uncertainty. Any final summit declaration is not expected to mention the United States or its president by name. But it is expected to be a clear political shot directed at Washington. "We're anticipating a summit with a cautious tone: it will be difficult to mention the United States by name in the final declaration," Marta Fernandez, director of the BRICS Policy Center at Rio's Pontifical Catholic University said. This is particularly the case for China, which has only recently negotiated with the US to lower steep tit-for-tat levies. "This doesn't seem to be the right time to provoke further friction" between the world's two leading economies, Fernandez said. Xi no show Conceived two decades ago as a forum for fast-growing economies, the BRICS have come to be seen as a Chinese-driven counterbalance to Western power. But the summit's political punch will be depleted by the absence of China's Xi Jinping, who is skipping the annual meeting for the first time in his 12 years as president. "I expect there will be speculation about the reasons for Xi's absence," said Ryan Hass, a former China director at the US National Security Council who is now with the Brookings Institution think tank. "The simplest explanation may hold the most explanatory power. Xi recently hosted Lula in Beijing," said Hass. The Chinese leader will not be the only notable absentee. War crime-indicted Russian President Vladimir Putin is also opting to stay away, but will participate via video link, according to the Kremlin. Hass said Putin's non-attendance and the fact that India's prime minister will be a guest of honor in Brazil could also be factors in Xi's absence. "Xi does not want to appear upstaged by Modi," who will receive a state lunch, he said. "I expect Xi's decision to delegate attendance to Premier Li (Qiang) rests amidst these factors." Still, the Xi no-show is a blow to host President Luiz Inacio Lula da Silva, who wants Brazil to play a bigger role on the world stage. In the year to November 2025, Brazil will have hosted a G20 summit, a BRICS summit, and COP30 international climate talks, all before heading into fiercely contested presidential elections next year, in which he is expected to run. Middle path Iran's President Masoud Pezeshkian, whose nation is still reeling from a 12-day conflict with Israel is also skipping the meeting. A source familiar with the negotiations said the BRICS countries were still in disagreement over how to respond to the wars in Gaza and between Iran and Israel. Iranian negotiators are pushing for a tougher collective stance that goes beyond referencing the need for the creation of a Palestinian state and for disputes to be resolved peacefully. Artificial intelligence and health will also be on the agenda at the summit. Original members of the bloc Brazil, Russia, India, and China have been joined by South Africa and, more recently, by Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia and Indonesia. Analysts say that it has given the grouping more potential international punch. But it has also opened many new fault lines. Brazil hopes that countries can take a common stand at the summit, including on the most sensitive issues. "BRICS (countries), throughout their history, have managed to speak with one voice on major international issues, and there's no reason why that shouldn't be the case this time on the subject of the Middle East," Brazil's Foreign Minister Mauro Vieira told AFP. AFP
IOL News
5 hours ago
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BRICS nations voice 'serious concerns' over Trump tariffs
A workers walks in the open area of the Modern Art Museum (MAM) where the BRICS summit 2025 will be held in Rio de Janeiro, Brazil on July 3, 2025. Image: Mauro PIMENTEL/AFP BRICS leaders meeting in Rio de Janeiro on Sunday are expected to decry US President Donald Trump's "indiscriminate" trade tariffs, saying they are illegal and risk hurting the global economy. Emerging nations, which represent about half the world's population and 40 percent of global economic output, have united over "serious concerns" about US import tariffs, according to a draft summit statement obtained by AFP on Saturday. Since coming to office in January, Trump has threatened allies and rivals alike with a slew of punitive duties. President Cyril Ramaphosa has arrived in Brazil at the invitation of President Luiz Inacio Lula da Silva of Brazil, where he will attend the XVII #BRICSSummit on 6 - 7 July 2025 in Rio de Janeiro. Image: GCIS Video Player is loading. 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Advertisement Next Stay Close ✕ His latest salvo comes in the form of letters informing trading partners of new tariff rates that will soon enter into force. The draft summit declaration does not mention the United States or its president by name, and could yet be amended by leaders gathering for talks Sunday and Monday. But it is a clear political shot directed at Washington from 11 emerging nations, including Brazil, Russia, India, China and South Africa. "We voice serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO (World Trade Organization) rules," the draft text says. It warns that such measures "threaten to further reduce global trade" and are "affecting the prospects for global economic development." Xi no show Conceived two decades ago as a forum for fast-growing economies, the BRICS have come to be seen as a Chinese-driven counterbalance to Western power. But the summit's political punch will be depleted by the absence of China's Xi Jinping, who is skipping the annual meeting for the first time in his 12 years as president. That absence has prompted fevered speculation in some quarters. "The simplest explanation may hold the most explanatory power. Xi recently hosted Lula in Beijing," said Ryan Hass, a former China director at the US National Security Council who is now with the Brookings Institution think tank. The Chinese leader will not be the only notable absentee. War crime-indicted Russian President Vladimir Putin is also opting to stay away, but will participate via video link, according to the Kremlin. Hass said Putin's non-attendance and the fact that Indian Prime Minister Narendra Modi will be a guest of honor in Brazil could also be factors in Xi's absence. "Xi does not want to appear upstaged by Modi," who will receive a state lunch, he said. "I expect Xi's decision to delegate attendance to Premier Li (Qiang) rests amidst these factors." Still, the Xi no-show is a blow to host President Luiz Inacio Lula da Silva, who wants Brazil to play a bigger role on the world stage. In the year to November 2025, Brazil will have hosted a G20 summit, a BRICS summit, and COP30 international climate talks, all before heading into fiercely contested presidential elections next year, in which he is expected to run. Lula warmly welcomed leaders and dignitaries on Saturday, including China's Premier Li Qiang, as the leftist president hosted a pre-summit business forum in Rio. "Faced with the resurgence of protectionism, it is up to emerging countries to defend the multilateral trade regime and reform the international financial architecture," Lula told the event. Iran's President Masoud Pezeshkian, whose nation is still reeling from a 12-day conflict with Israel, is also skipping the meeting and will be represented by Foreign Minister Abbas Araghchi. A source familiar with the negotiations said Iran had sought a tougher condemnation of Israel and the United States over their recent bombing of Iranian military, nuclear and other sites. But one diplomatic source said the text would give the "same message" that BRICS delivered last month. Then Iran's allies expressed "grave concern" about strikes against Iran, but did not explicitly mention Israel or the United States. Artificial intelligence and health will also be on the agenda at the summit. Original members of the bloc Brazil, Russia, India, and China have been joined by South Africa and, more recently, Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia and Indonesia.
