UN Climate Chief Warns of Economic Fallout from Climate Inaction at COP29

On Day 2 of the UN Climate Change Conference (COP29), Simon Stiell, the UN Climate Change Executive Secretary, made a strong appeal for immediate and equitable climate financing, pointing out that the climate crisis is no longer a remote issue but an “economy-killer” that affects every nation.

Stiell, speaking in Baku, stressed the urgent need for fairer climate financing, critiquing investments favouring developed markets over others. He asserted that wider financing mechanisms are crucial for supporting global climate initiatives, especially in vulnerable economies.

“Climate investment must flow to where it’s needed most,” Stiell emphasized, cautioning that if nations do not aggressively reduce emissions, financial burdens will intensify for households globally. He linked climate inaction to inflation, calling climate action “global inflation insurance” to reduce food supply disruptions from disasters.

He urged countries to recognise that ignoring climate risks only worsens economic hardship and inflationary pressure.

“Worsening climate impacts will put inflation on steroids unless every country can take bolder climate action,” he warned, stressing that comprehensive climate policies are now imperative for economic stability.

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Economic Opportunity in Climate Action

Stiell highlighted that the clean energy transition creates financial opportunities, fosters job growth, boosts economies, and decreases pollution in countries. “Bolder climate action can drive economic opportunity and abundance everywhere,” he noted, positioning clean energy as the cornerstone of future economic prosperity.

Stiell stressed that countries must prioritize green investments and integrate climate initiatives into economic plans for immediate benefits.

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Renewed Focus on National Climate Commitments

Stiell also urged countries to reaffirm their commitments to Nationally Determined Contributions (NDCs), which define national climate objectives and strategies.

He highlighted that ambitious NDCs are essential for speeding up clean energy transitions and enhancing climate resilience. Stiell emphasised that strong commitments and funding can help nations harness clean energy to enhance economic growth and prosperity.

As COP29 progresses, his remarks emphasise that climate action is a crucial economic need, requiring swift, united global efforts.