The increasing cost of fossil fuels has made renewable energy more competitive. The construction of solar and wind power plants remains more expensive for developing nations. Several major emerging economies, including Indonesia and India, are negotiating aid projects known as 'just transition energy partnerships,' or JET-Ps, that could be finalized during or shortly after COP27 in order to reduce their emissions rapidly.
One of the major stumbling blocks in previous negotiations concerned the financial assistance that rich nations provide to poor countries to combat climate change.
The deadline to provide $100 billion annually by 2020 was missed, and it appears unlikely that this goal will be met until at least 2021. Future funding requirements are likely to be in the trillions, not the billions, according to Mohamed Nasr, the Egyptian negotiator in charge.
"The financial gap is vast, "He noted that half of Africa's population does not have access to electricity, let alone clean energy.
Developed nations, including the United States, have yet to fulfil a pledge to double the amount they provide for adaptation and make it 50 percent of total funding.
Climate finance discussions also include the highly contentious issue of compensating countries for the irreparable harm they've sustained as a result of global warming. Historically, large polluters have vehemently opposed demands for 'loss and damage' payments, but observers report a recent softening of positions, including that of the United States.
The head of the United Nations Environment Programme, Inger Andersen, stated, "I don't think people are expecting a miracle in the form of a huge fund appearing out of thin air, but rather a credible, meaningful path."
This would benefit countries that have contributed minimally to the climate crisis but are on the front lines of addressing it ""something to cling to," she stated.
EYE ON AFRICA
The gathering in Egypt will mark the return of U.N. climate talks to Africa for the first time since 2016. Given the extent to which it is affected by rising temperatures, experts believe it is crucial that the continent receives more attention.
"If we examine the 50 countries that are most vulnerable to the effects of climate change and have the least resilience, the majority of them are low-income African nations." "Preety Bhandari from the World Resources Institute stated. "It is therefore fortuitous that this particular COP is being held in Africa to highlight the requests of the most vulnerable countries to the climate regime."
Campaigners assert that acknowledging Africa's challenges and prioritising the needs of vulnerable nations are crucial for a successful outcome this year.