Finance Day at COP29: A Critical Focus on Climate Funding
Day 4 of COP29 has been designated as “Finance Day,” emphasizing the pivotal role of financial mechanisms in addressing climate change. As negotiations continue, discussions have primarily revolved around the accessibility of funds and strategies to enhance the flow of climate resources. Central to these dialogues are the projected financial needs necessary to combat the climate crisis.
A recent report published on Thursday by the Independent High-Level Expert Group on Climate Finance (IHLEG) advocates for a target of mobilizing up to $1.3 trillion annually by the year 2035. Sherry Madera, the CEO of CDP—a global non-profit organization that manages the world’s environmental disclosure system—shared insights with Euronews, stating:
“Today at Finance Day at COP29, our focus is squarely on mobilizing capital. However, the figures vary dramatically, with the IMF estimating a requirement of around $5 trillion per year, and some estimates suggesting the need could soar to $40, 50, or even 60 trillion annually to effectively tackle the climate crisis.”
Madera continued, “The reality we must confront is to determine what is feasible. We need to strategize on how to mobilize even $1 to $3 trillion, because action is essential now and must be swift. This requires collaboration between corporations and public entities.”
Calls for Special Financial Arrangements for Small Island Developing States
Small Island Developing States (SIDS) are particularly vulnerable to the impacts of climate change, and their voices are vital in the discussions. Joyelle Trizia Clarke, the Minister of Sustainable Development, Environment, and Climate Action for Saint Kitts and Nevis, articulated the challenges faced by SIDS, stating:
“Acknowledging SIDS as a unique group with specific vulnerabilities is critical. Our limited access to climate finance hampers our ability to address this existential threat that we did not create.”
Clarke emphasized the necessity for a reformed financial framework tailored to the realities faced by SIDS, noting:
“Much of the adaptation finance we receive is structured as debt, which exacerbates our existing financial burdens. Thus, we are advocating for special arrangements that would allow us to access climate finance without the added pressure of debt.”
Activist Voices: Demand for Trillions, Not Billions
In a notable development at COP29, climate activists have been permitted to stage protests within the conference venue for the first time. Alongside calls for emission reductions, these activists are urging developed nations to honor and enhance their financial commitments.
Sandra Guzman, an activist representing the Climate Finance Group for Latin America and the Caribbean, expressed her concerns to Euronews, stating:
“Current estimates indicate that climate finance needs are in the trillions, yet we are only receiving billions. We are here to demand the necessary trillions to invest not only in emission reductions but also in bolstering our capacity to adapt to the ongoing crisis. We also seek compensation for the losses and damages already incurred worldwide. This new collective goal is not just an incentive; it is essential for sustaining our fight against climate change.”
As the summit progresses, further discussions on the existing unofficial draft text are anticipated when government ministers convene in Baku on Monday.
