COP29 climate finance in figures: how much is needed and where does it come from?

As world leaders continue talks at COP29 in Baku, negotiators agree to Adequate financing is needed to help low-income countries adapt to climate changeHowever, there remains disagreement over who should bear this financial responsibility. And the numbers for this new climate finance target are huge.

Addressing the accelerating impacts of climate change billions of dollars are neededAccording to many experts and reports, this cost is well beyond the reach of the poorest countries.

The new funding objective is aimed at replace the annual target of $100 billion (95 billion euros) was established in 2009, which It could barely be completed in 2022Two years late.

According to a report by the Climate Policy Initiative, global climate finance came closer 1.3 trillion dollars (1.2 billion euros) in 2021/2022 compared to an annual average of $653 billion (619 billion euros) in 2019/2020. other organizationsThey put the required figure at $1 trillion (948,000 million euros) per year.

Some? expert group Experts say the amount of climate finance needed is expected to rise to $9 trillion (€8.5 trillion) by 2030.

To meet these huge monetary needs, governments around the world are exploring various options, such as wealth tax, duty on sea transport And address loan,

Backed by taxpayer financing, large international banks have become the largest and fastest providers of climate finance to developing countries.

These banks were a major reason, In 2022 the world will achieve the target which the countries had set in 2009

To provide $100 billion annually to developing countries to combat climate change.

However, international development banks have been urged to act more quickly and effectively. The Climate Policy Initiative research group estimates that the world needs about five times the current annual amount of climate finance to limit warming to 1.5C.

The Independent High-Level Expert Group on Climate Finance estimates that, by 2030, developing countries (Excluding China) would require $2.4 trillion (2.3 billion euros) annually for climate investments.

World Bank allocated $42.6 billion (40.4 billion euros) in its final fiscal year to finance the fight against climate change, meaning 10% increase compared to last year,

Developing countries are more dependent on these banks Financing climate projects compared to industrialized countries. According to the Climate Policy Initiative, commercial banks and companies financed more than half of climate-friendly projects in the United States and Canada in 2022.

instead, Private lenders contributed only 7% of such financing in sub-Saharan Africa. This disparity is due to the difficulty of developing countries in accessing low interest rates.

Developed countries, including the United States and the European Union, consider it Developing countries need trillions of climate investmentsHowever, they have not yet set any specific targets for international financial assistance.

in 2023The European Union and its 27 member states contributed 28.6 billion euros were raised from public sources and another 7.2 billion euros of private financing Helping developing countries deal with climate change.