COP29, the 2024 United Nations Climate Change Conference in Baku, Azerbaijan, is centered on the pressing issue of mobilizing trillions of dollars in climate finance to address the escalating climate crisis.
The summit builds upon the Paris Agreement’s commitment to establish a “new collective quantified goal” (NCQG) for climate finance by 2025, replacing the previous $100 billion annual target, which has been criticized as insufficient.
Simon Stiell, UN Climate Change Executive Secretary, stressed the necessity of collective action, calling for a new global climate finance goal and reforms to the global financial system.
He emphasized that climate finance is not charity but a self-interested imperative for all nations.
Stiell also pointed to the critical importance of operationalizing international carbon markets and enhancing adaptation measures to keep the 1.5ยฐC target within reachโ
Key discussions at COP29 include determining the amount of funding required, identifying contributors, and deciding what initiatives will be prioritized.
Developing countries argue for greater financial commitments from high-income nations, developed countries seek broader contributions, including from private sectors and emerging economies like China.
There is also debate over how funds should be allocated, particularly for mitigation, adaptation, and addressing loss and damage caused by climate-related disastersโ.
Despite recent progress, such as the establishment of a Loss and Damage Fund at COP28, the funding pledged so farโaround $700 millionโis far below the estimated $580 billion in climate-related damages developing countries may face by 2030.
Closing the adaptation finance gap, currently ranging from $187 billion to $359 billion annually, is another critical focus of the summitโ.
The outcomes of COP29 are expected to shape global climate strategies, setting the stage for future investments in clean energy, resilience, and equitable transitions to mitigate climate risksโ.
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