Climate Finance Report 2024

Chapter 2 | THE CLIMATE ACTION PLAN

Impacts of Climate Change in Partner Countries

already water-stressed regions. Additionally, rising sea lev- els can lead to the salinization of freshwater in inland areas. These factors contribute to a lack of water availability for ag- riculture, industry and domestic use. The public health implications of climate change are still evolving, but it is evident that extreme weather conditions will lead to an increase in heat-related illnesses such as heat- stroke as well as malnutrition due to food shortages. Public health facilities in the Global South are currently not equipped to address these emerging challenges. Climate change significantly impacts economic and infra- structure development, especially in climate-sensitive sectors like agriculture, fisheries and tourism. This destabilizes fragile economies and leads to increased migration, poverty and so- cial inequality on a large scale. Additionally, the loss of critical habitats, coral bleaching and deforestation further threatens ecosystems and biodiversity. These adverse effects risk re- versing the progress made towards achieving the SDGs.

An actionable strategy to implement the CAP was necessary to effectively address the needs of partner countries, pri- marily in the Global South. Consequently, the OPEC Fund’s strategy is informed by its extensive experience in tackling climate challenges in these regions. Partner countries face a range of climate-related issues, which shape the OPEC Fund’s climate-focused approach and identify the specific risks to be addressed. An overview of these direct and indi- rect climate risks is provided in the following sections. Many OPEC Fund partner countries frequently experience extreme weather events such as hurricanes, droughts and floods. These events lead to widespread destruction of in- frastructure, loss of livelihoods and displacement of com- munities. In regions like East and Southern Africa, the focus is not only on protecting existing infrastructure but also on coping with emerging vulnerabilities due to climate-­ influenced disasters. Countries with low-lying coastal areas are particularly vulner- able to rising sea levels, which cause coastal erosion, saliniza- tion of freshwater sources and increased flooding. In addition to Small Island Developing States (SIDS), coastal regions of countries like Bangladesh are severely threatened. SIDS are already witnessing the inundation of agricultural lands and habitations, leading to mass migration to urban areas. The agriculture sector is significantly impacted by irregular and extreme weather events. Climate change disrupts crop growing seasons, reduces yields and results in crop losses. This, in turn, leads to food scarcity and threatens the live- lihoods and food security of millions of people, which can quickly escalate from a local to a global threat. These issues are particularly evident in Africa, which is why the OPEC Fund is working closely with governments and communities to safeguard agriculture and livelihoods.

Addressing Climate Justice and South-South Coop- eration

The challenges outlined above highlight the urgent need for effective approaches to climate justice and South-South cooperation to equitably address global climate challenges. Developing countries in the Global South often lack the finan- cial resources and technology required to effectively combat these negative impacts. Achieving climate justice is particu- larly challenging because the burden of adaptation and miti- gation disproportionately falls on these nations. It is essential to support less developed and climate-vulner- able nations through funding, technology transfer, capaci- ty building, data and monitoring support as well as policy alignment tailored to their specific needs. By integrating cli- mate justice principles with South-South cooperation we can ensure that the most marginalized communities receive the support they need, while collectively working towards a more resilient and sustainable future.

Reduced flow in perennial glacier-fed rivers and over-ex- traction of groundwater have exacerbated water scarcity in

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