Assia Sidibe is a Senior Portfolio Manager at the MPTFO, leading on the Office’s portfolio of climate and environment funds which in 2023 totalled $235m.  

Whilst the Conference of the Parties (COP) on the climate change convention meets every year (most recently as part of COP29, in Baku this past November), the COPs on Biodiversity (COP16, Cali, Colombia, October) and Desertification (also COP16 Riyadh, Saudi Arabia, December) typically happen every two years. This means that every two years we get a ‘tri-COP’ – a major international focus on (nearly) all things related to the climate and environment, and development action to preserve, and protect, both, in line with the 2030 Agenda.  

This time we hear from Assia her take on some of the opportunities, challenges, and openings for pooled funding coming out of the ‘tri-COP’.  

And you can read more about how pooled funds can be a tool for ‘making peace with nature’, going into COP16 on biodiveristy, here.  

What do you see as the biggest opportunity coming out of the COPs so far?  

The short answer is: a very great deal, starting with tackling climate change, and addressing biodiversity loss. 

2024 is a unique year, with 3 interconnected COPs taking place in the last few months: The Convention for Biological Diversity in Cali, Colombia (COP16), the United Nations Framework Convention on Climate Change (UNFCCC; COP29), in Baku, and the United Nations Convention on Desertification (COP16), in Riyadh. This convergence allows for an important and deep reflection on the interactions between these conventions, and the interconnected nature of climate and biodiversity. 

While the UNCCD COP on land and drought resilience has just come to an end, several opportunities have already emerged from the UNFCCC and the CBD COPs. The Climate COP concluded on 24 November 2024 with a significant agreement on finance, known as the New Collective Quantified Goal on Climate Finance (NCQG). This agreement aims to triple annual finance to developing countries from the previous goal of 100 billion USD to 300 billion USD by 2035, and to mobilize 1.3 trillion USD per year from public and private sources by 2035. Although the specifics of achieving this goal are still unclear, the commitment reflects a positive mindset towards increasing climate funding, presenting an opportunity for climate-related Multi-Partner Trust Funds.

Besides direct finance, what are the most interesting dynamics coming out of the COPs?

There are a couple of issues that seem important to me.

One is the agreement reached on the operation of carbon markets under the Paris Agreement, which is absolutely crucial. In short, it opens new funding avenues for countries through a standardized market agreed upon by all parties, and it will provide clarity to MPTFs looking to support countries through carbon market related funding.

The other is arguably the political capital of vulnerable countries, and they constructive way this has been used, in particular in driving an agreement on COP29 (even though they went past the deadline!).

Where and how do you see pooled funding playing a big role?  

During the CBD COP, a significant development was the decision by the Parties to establish the Cali Fund. This groundbreaking agreement aims to raise millions to protect communities that safeguard nature by requiring companies to share the benefits derived from genetic information sequenced from the natural world. The Cali Fund will be managed by the UN through our Office. 

Beyond this, pooled funds have a significant role to play as instruments that are global, inclusive and efficient:

• First is the global reach: their unique ability to coordinate support for global issues under shared and agreed UN standards,
• Next is inclusivity, evident in the governance structure of pooled funds, where countries participate and co-lead decision-making processes. Recently, governance mechanisms for pooled funds have included coalitions of actors, including research institutes, and civil society organizations. This approach is crucial as it ensures joint ownership of the funds and promotes inclusive and transparent operations, aligning with the UN's mission to serve its Member States.
• And the efficiency comes in by way of utilizing shared systems, that have been practiced over 20+ years.

So, by their nature, pooled funds will have a critical role to play among the financial instruments needed to support the climate and environment action Member States are setting out across the tri-COPs.