As the COP29 climate summit approaches in Azerbaijan, leaders recognize that trillions of dollars are needed to tackle climate change, yet negotiators suggest that a more realistic financing target lies in the “hundreds of billions.”
Negotiators will convene in Baku next month to set a new financing goal, replacing the current commitment of wealthy nations to provide $100 billion annually in climate finance to developing countries.
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At a critical meeting last week, parties to the United Nations Framework Convention on Climate Change acknowledged for the first time that the scale of financial need is in the trillions, according to COP29 chief negotiator Yalchin Rafiyev.
He noted that while the public sector could contribute “hundreds of billions,” significantly more is required to meet the total need.
With climate change fueling worsening disasters—ranging from hurricanes to extreme heat—developing nations are demanding increased financial support to adapt and invest in renewable energy.
Global temperatures have risen approximately 1.3 degrees Celsius above pre-industrial levels, and 2024 is on track to be the warmest year on record. Scientists warn that limiting global warming to 1.5 degrees Celsius is rapidly slipping out of reach without greater action.
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Over 100 world leaders, including 61 presidents and 38 prime ministers, are expected to participate in the Baku negotiations. This follows last year’s Dubai climate summit, attracting over 160 leaders.
During the Pre-COP conference, Azerbaijan’s President Ilham Aliyev emphasized the urgency of climate action, urging states to set aside disagreements and focus on collaborative solutions. Rafiyev reiterated that while funding needs are in the trillions, the realistic contributions from the public sector remain in the “hundreds of billions.”
The week also featured discussions on a New Collective Quantified Goal (NCQG) for climate finance, which aims to meet the needs of developing countries. The focus was on transparency and accessibility, and a draft negotiating text is set to be published soon.
As COP29 approaches, the emphasis on collaboration and pragmatic financing solutions will be crucial in addressing the challenges of climate change.