Climate negotiators at the COP29 Summit in Baku face a critical challenge: secure substantial climate funding to help poorer nations manage the brutal consequences of climate change, or offer much higher compensation in the future.
Experts are stressing the need for at least $1 trillion in annual climate finance by the end of this decade to shield communities from natural disasters and facilitate a transition to green energy. The issue of funding remains at the forefront of COP29 Baku.
The earlier goal of $100 trillion per year, set in 2009, and intended to be met by 2020, received the final green light only in 2022. But the amount has been criticised as not enough, and it is primarily dispatched through loans rather than grants.
Donald Trump opposing continued climate financing
The Independent High-Level Expert Group on Climate Finance released a report at the beginning of the COP29 Summit, stressing that an annual target of $1.3 trillion is going to be necessary by 2035 to optimally meet climate objectives.
The report emphasised that any shortfall in funding before 2030 is bound to add pressure on the future years, creating a steeper and potentially more expensive path to climate stability. The left the global community achieves today, the bigger the required funding is going to be.
Further complicating matters, US President-elect Donald Trump has expressed opposition to continued climate financing, reported CNBC. There have also been proposals to tax high-emission industries, such as fossil fuels and shipping.
