Commentary: Brazil and China Could Lead the Way on South-South Climate Cooperation

China and Brazil celebrated the 50th anniversary of their diplomatic ties in August, amidst an atmosphere of enhanced relations and commitment to climate cooperation. Both countries are pivotal in global efforts to combat climate change, and their actions in the upcoming months could significantly impact international climate dynamics. By fostering a comprehensive climate partnership, these nations can set a precedent for South-South climate cooperation, thereby revitalizing climate finance and adding vigor to international negotiations. This collaboration aligns with the objectives of the Paris Agreement and has the potential to alter the landscape of international climate efforts. [para. 1][para. 2][para. 3]

In recent decades, China and Brazil, as leading emerging economies, have transformed the global economic and geopolitical scenes. Their domestic climate initiatives reflect their commitments, and their influence on the global stage has catalyzed support for reforms in multilateral financial systems. They have advanced South-South cooperation through new entities like the New Development Bank, the Asian Infrastructure Investment Bank, China’s South-South Climate Cooperation Fund, and the Belt and Road Initiative. These platforms pave the way for increased climate-focused investments and initiatives, positioning Brazil as a potential new member of programs like the Belt and Road Initiative. [para. 4][para. 5][para. 6]

Despite these advancements, international climate finance has not adapted to such global changes. Although emerging and developing economies have shown considerable economic growth and emissions increase, climate finance predominantly flows to wealthier nations. Reports indicate that between 2021 and 2022, only a small portion of climate finance reached emerging markets and the least developed countries, with minimal allocations for adaptation or support to vulnerable nations. This discrepancy in climate finance distribution hinders the broader implementation of robust climate strategies. [para. 7][para. 8]

The Brazilian state of Rio Grande do Sul experienced devastating floods in May, highlighting deficiencies in climate finance allocation and pointing towards new approaches in international climate response. The disaster underscored a need for improved local capacities and nature-based solutions for resilience against extreme weather events. Addressing these challenges requires more responsive and adequate global climate finance, especially beyond the capabilities of regional and national authorities. [para. 9]

Climate finance under the UN framework predominantly originates from the Global North, emphasizing their responsibility to support the developing nations’ adherence to the Paris Agreement. At the COP29 summit in Azerbaijan, the goal is to develop a financial model adhering to the principle of “common but differentiated responsibilities." Still, challenges persist despite countries like China and Brazil pushing for emerging economies' recognition, aiming for enhanced climate finance that addresses developing countries' specific needs. [para. 10][para. 11][para. 12]

China and Brazil are strategically positioned to influence international climate finance positively. Their collaboration at the BASIC bloc meeting in Wuhan stressed the need for significant financial shifts to meet Paris Agreement targets. As China leads in low-carbon technology, it can drive global investments in green solutions, whilst Brazil advances its industrial policy and ecological transition program. Together, these nations can offer crucial support in technology transfer and transition planning, enhancing the reach and impact of global efforts. [para. 13][para. 14][para. 15]

In summary, China and Brazil can model a stronger form of South-South cooperation, focusing on solidarity and climate action. Their partnership could prove transformative, addressing biases in international finance and furthering goals at COP29 and beyond, setting a positive trajectory for forthcoming global climate dialogues. [para. 17][para. 18]