The goal is clear: $1 trillion a year in climate finance. This is the measure of success for this year’s UN Conference of the Parties on Climate Change, COP29, taking place in Baku, Azerbaijan. At these conferences, held every 12 months, all countries have a voice as they work towards decisions on how to address climate change. The conference begins with a plenary today, followed by speeches from heads of state and environment ministers tomorrow. Negotiators and sherpas will then work to reach a consensus on the decisions to be made.
The main focus of COP29 is the New Collective Quantified Goal (NCQG) on Climate Finance. In 2009, industrialized countries agreed to provide $100 billion annually to developing countries for climate actions, but this target was only met in 2022. In 2015, a new, larger target was set for 2025 and the NCQG was born. Now, at COP29, countries will discuss what the new target should be, with some arguing for trillions of dollars. They must also decide on the type and allocation of funds, as well as the role of the private sector. The main dilemma is the responsibility for these funds, with developing countries seeking support from developed nations and the latter demanding commitments on decarbonization. The position of China, as the world’s largest emitter, adds another layer of complexity to the discussions.
