BAKU: Developing countries need at least US$1 trillion per year by the end of the decade to cope with climate change, economists told UN talks in Baku, where early efforts to reach a finance deal risk being overshadowed by diplomatic rows.
Money is a focus at COP29 whose success is likely to be judged by whether it can agree a new target for how much richer countries, development lenders and the private sector must provide each year to help developing countries finance the transition to greener energy and protect against extreme weather.
Reaching a deal is likely to be especially hard at a summit where the mood has been soured by disputes and pessimism about shifts in global politics.
Donald Trump’s presidential election win has cast the United States’ future role in climate talks into doubt and tension between developed and developing nations has bubbled to the surface on the main stages and in negotiating rooms.
“Parties must remember that the clock is ticking,” COP29 Lead Negotiator Yalchin Rafiyev told a news conference.
“They must use this precious time to talk to each other directly and take ownership of building bridging solutions.”
A previous finance goal of US$100 billion per year, which expires in 2025, was met two years late in 2022, the OECD said in May. Much of it was in the form of loans rather than grants, something recipient nations say must change.
Setting the tone at the start of Thursday, a report from the Independent High-Level Expert Group on Climate Finance said the target annual figure would need to rise to at least US$1.3 trillion a year by 2035 if countries fail to act now.
“Any shortfall in investment before 2030 will place added pressure on the years that follow, creating a steeper and potentially more costly path to climate stability,” the report said.
