Advancing COP29 climate finance targets through a human rights approach

Eric Usher

Head, UN Environment Programme Finance Initiative

This article originally featured in the New Scientist magazine on 5th December’

Following ambitious new climate finance targets set at COP29, there is a growing consensus that a fair and inclusive human-rights-based approach is essential for effective climate action.

Human rights are one of the four thematic areas shaping the banking industry’s approach to climate finance over the next five years. Integrating human rights considerations into climate and nature-based investments is not just ethical; it is essential for sustainable development and good business practice. The UN Environment Programme Finance Initiative (UNEP FI) annual Global Roundtable will urge finance industry leaders to take concrete steps towards achieving COP29’s climate goals while being inclusive of human rights.

Integrating human rights into climate finance

High-profile incidents, such as the Brumadinho dam disaster in 2019, underscore the risks of sidelining human rights in project financing. The dam’s collapse released 12 million cubic metres of tailings, killing 270 people. This tragedy, caused by ignored safety warnings and inadequate oversight, highlights the severe consequences, including reputational damage and legal costs of failing to incorporate human rights considerations.

Human rights will undoubtedly remain
central to climate finance discussions.

Leveraging climate finance for a just transition

Financial institutions are increasingly recognising the importance of human rights and developing policies aligned with the UN Guiding Principles on Business and Human Rights (UNGPs). Many banks are implementing human rights due diligence (HRDD) processes to identify and address potential human rights risks in their operations and client supply chains.

The UNEP FI’s report, Just Transition Finance: Pathways for Banking and Insurance, elaborates on how financial institutions can play a pivotal role in promoting a just transition to low-carbon, climate-resilient economies. The report also addresses approaches to managing the environmental, social and economic impacts of sustainability transitions. Key recommendations for financial institutions include committing to a just transition strategy while integrating these considerations into their organisational structures, products and services.

Human rights central to future climate discussions

Human rights will undoubtedly remain central to climate finance discussions at future COPs. This reflects a growing understanding that sustainable climate action must be just, inclusive and respectful of human rights. By advocating for climate financing that addresses both environmental and social objectives, organisations can lay the groundwork for a human rights-based approach to climate finance. This will benefit the planet and its people.