The UN climate summit in Azerbaijan this year has brought attention to the issue of climate finance, with a specific focus on the new collective quantified goal (NCQG) under the 2015 Paris Agreement.
Rich countries are obligated to assist developing nations with funding to mitigate greenhouse gas emissions and adapt to climate change impacts.
While the current target of $100 billion annually is seen as insufficient, developing nations are requesting around $1 trillion by 2035 to meet their needs.
The gap between what is pledged and what is required could potentially be filled through innovative sources of finance.
These might include taxes on fossil fuels or the reallocation of subsidies towards more sustainable energy sources.
However, the details of these measures are still under negotiation and will require further work.
Countries debate innovative finance solutions and expand their contributor base to meet climate targets.One contentious issue is the expansion of the contributor base to include not just traditional wealthy nations, but also emerging economies like China and wealthy petrostates such as Saudi Arabia.
The EU insists that a higher climate finance goal will only be acceptable if these nations contribute to the funding pool, possibly voluntarily.
Another key topic is the “loss and damage” fund, designed to assist countries affected by severe climate events like floods and hurricanes.
After years of advocacy, a fund was established at Cop28, but it still requires financial contributions and operationalizing before it can begin aiding affected nations.
Additionally, there’s an ongoing push to implement rapid and deep cuts in emissions, aiming for net-zero emissions by 2050.
However, current national plans (NDCs) are far from sufficient, and the success of Cop29 will largely depend on whether countries commit to updated stronger plans.
Climate finance, loss and damage, and emission reductions will all be crucial areas of discussion as global leaders seek to address the escalating climate crisis.