Fossil Fuels
Least Developed Countries
Since 1971, the United Nations has recognised Least Developed Countries (LDCs) as a category of states that are considered to be at a severe disadvantage in their development process for structural, historical and geographical reasons. Compared to other states, these countries face a higher risk of remaining underdeveloped and are also vulnerable to external economic shocks and natural or man-made disasters. Currently, 45 countries are recognised as LDCs. Their status and development is reviewed every three years by the UN Economic and Social Council. The criteria used to assess LDCs are: GDP per capita, human assets (such as healthcare and literacy), and economic and environmental vulnerability. Countries recognised by the UN as LDCs receive special benefits in areas such as development finance, access to multilateral trade and technical assistance.
Stance on Fossil Fuels
The LDC members are disproportionately affected by the effects of climate change, thus they advocate for pressuring the G20 to phase out fossil fuels entirely. On the other hand, many individual LDCs are dependent on financial aid provided by the G20 countries in return for the extraction of fossil fuels. This complex dynamic highlights the tension between urgent climate action and the economic realities faced by these nations. Ultimately, finding a sustainable path forward will require innovative solutions that balance environmental concerns with the developmental needs of the LDC group. The Intergovernmental Panel on Climate Change (IPCC) projected that if the FFS are removed, the result by 2030 will be a 10% decrease of the greenhouse emissions and a decrease of maximum 4% of the CO2 emissions.
Market-based solutions, such as carbon trading and carbon taxes, are often proposed as ways to reduce emissions without stifling economic growth. These mechanisms aim to put a price on carbon, creating financial incentives for industries and nations to shift toward renewable energy. However, some critics argue that these approaches might not go far enough, as they leave room for continued fossil fuel extraction. Furthermore, for LDCs, implementing such measures could be challenging due to their existing financial and infrastructural limitations. A more radical solution like degrowth, which advocates for reducing consumption and production to curb environmental harm, may offer an alternative pathway. Balancing market-based solutions with more transformative approaches will be crucial for achieving equitable and sustainable climate action.
Rwanda is one of the frontrunners of the LDCs on the topic of climate policy. It was the first African country and also the first LDC to develop a Nationally Determined Contribution (NDC) that exceeds the average standard, as the nation plans to have reduced their emission by 38% by 2030. (https://climatepromise.undp.org/news-and-stories/supporting-climate-action-least-developed-countries)
Further Reading
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Choyon Kumar Saha and Angela V. Carter, “Phase-out or lock-in fossil fuels? Least developed countries’ burning dilemma,” The Extractive Industries and Society 11, 2022. (https://www.sciencedirect.com/science/article/abs/pii/S2214790X22001046#:~:text=carbon%20energy%20development.-,Abstract,the%20production%20of%20fossil%20fuels)
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UNDP, “Supporting climate action in Least Developed Countries,” Climate Promise. https://climatepromise.undp.org/news-and-stories/supporting-climate-action-least-developed-countries
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IISD, “How the UNFCCC Can Tackle Fossil Fuel Subsidies at COP 28 and Beyond”https://www.iisd.org/articles/insight/unfccc-tackle-fossil-fuel-subsidies-cop-28
Authors
Goa Bijsterveld, Susanna Zeilstra, Martin Rangelov
