COP29 Official: Raising climate finance target to $1 T is essential for effective global action

Regarding expectations for the COP event to be hosted by Azerbaijan for the first time, Parvana Valiyeva, a member of the COP29 Organizing Committee and member of the Milli Majlis ( Parliament of Azerbaijan), stated in an interview with Azertac that the main focus of this conference will be reaching an agreement on a new financial commitment.

"The main expectation from COP29 is to agree on a new funding amount for climate action that developed countries will provide to developing countries. While the previous target of $100 billion in climate finance was due by 2020, this was reportedly only achieved in 2022," said Parvana Valiyeva.

She noted that the primary goal of the Parties at COP29 will be to determine this new funding amount, adding that the current financial goal of $100 billion is insufficient to limit global warming to 1.5 degrees Celsius above pre-industrial levels and to address the challenges faced by the countries most affected by climate change.

So what is climate finance?

Climate finance refers to the financial resources provided to support climate-related projects and initiatives, particularly in developing countries. This funding aims to help these nations mitigate and adapt to the impacts of climate change. It can come from various sources, including governments, international financial institutions, and private sector investments.

Importance of climate finance:

Effective climate finance is essential for enabling sustainable development and achieving global climate targets. It supports technology transfer, capacity building, and the implementation of climate action plans that align with the Paris Agreement.

According to Parvana Valiyeva, the climate finance goal should be increased.

"This goal should be significantly raised to at least $500 billion, or even $1 trillion. The world community expects this from developed countries, and serious work needs to be done in this area," she said.

Ms. Valiyeva emphasized that the G7 and, to some extent, the G20 countries must understand their responsibilities in this matter: "These countries must make appropriate decisions and reach a consensus."

But what would happen if this target were actually increased to, say, $1 trillion?

If the climate finance target is increased to $1 trillion, several potential outcomes and implications could arise:

Enhanced support for developing countries

Increased capacity: Developing nations would have significantly more resources to invest in renewable energy, sustainable agriculture, and climate-resilient infrastructure.

Improved adaptation: More funding could enhance efforts to adapt to climate impacts, such as extreme weather events and rising sea levels, thereby reducing vulnerability.

Accelerated global climate action

Faster transition to renewables: With more resources, countries could accelerate the transition from fossil fuels to renewable energy sources, contributing to global emissions reductions.

Innovative solutions: Increased funding could drive innovation in climate technologies and practices, fostering a more sustainable economy.

Strengthened international cooperation

Global collaboration: A higher funding target may necessitate greater cooperation among countries, leading to more collaborative projects and shared technologies.

Equity and justice: This move could address climate equity, acknowledging the responsibility of developed countries to support those most affected by climate change.

Challenges in implementation

Funding mechanisms: There would need to be clear and effective mechanisms for distributing this funding to ensure it reaches the intended projects and communities.

Accountability and oversight: Increased funding could lead to greater scrutiny regarding how funds are used, necessitating strong governance frameworks.

Potential economic impacts

Economic growth: Investment in green technologies and infrastructure could stimulate job creation and economic growth in both developed and developing countries.

Market shifts: A significant increase in climate finance could shift investment trends, encouraging private sector involvement and driving the development of sustainable markets.

Political and public pressure

Expectations on developed countries: Increased targets would put pressure on developed nations to fulfill their commitments, potentially affecting international relations and negotiations.

Public support: Greater visibility and public awareness of climate finance needs could drive advocacy and demand for action from governments and businesses.

Raising the climate finance target to $1 trillion could fundamentally reshape global climate action, providing essential resources for adaptation and mitigation efforts. However, it would also require robust mechanisms to ensure effective and equitable use of funds, fostering accountability and international cooperation.

Parvana Valiyeva noted that Azerbaijan, as the chair of COP29, is making every effort to reach an agreement on new climate financing goals and to achieve results based on consensus.

"Azerbaijan's COP29 Presidency is striving to reach an agreement on climate finance between developed and developing countries, and to achieve results based on consensus. The COP29 Presidency is calling on developed countries and international financial institutions to take action and is working continuously to support this goal. Additionally, regular and constructive meetings are being held with the Parties, international organizations, and other interested stakeholders."

As an example, she mentioned that informal consultations were held with heads of delegations in Azerbaijan from July 25-28, 2024, to discuss key issues on the COP29 agenda.

It should be emphasized that addressing the needs of developing small island states is a priority for Azerbaijan, as these countries are particularly vulnerable to the effects of climate change. Despite their limited influence on climate change itself, they bear the brunt of its worst consequences.

President Ilham Aliyev stated in his speech that solving the challenges posed by climate change for developing small island states will be among Azerbaijan’s priorities as COP29 chair.

"We plan to hold the Small Island Developing States Summit during COP in Baku. We will do everything we can to ensure that the voices of small island developing states are heard loud and clear. I call on all countries during COP29 to make maximum efforts to reach an agreement that meets the needs and priorities of small island developing states," President Aliyev said.

Parvana Valiyeva, a member of the COP29 Organizing Committee, also emphasized this issue. "The COP29 Presidency attaches special importance to the problems faced by Small Island Developing States (SIDS), which suffer the most from the negative effects of climate change. Azerbaijan's support for them is highly appreciated by the international community," she added.

It should be noted that Azerbaijan has already demonstrated its support for addressing the damages caused by hurricanes, earthquakes, floods, and other natural disasters in several developing small island states. Azerbaijan will allocate funds for technical assistance programs through the United Nations, which represents 33 small island developing states, as well as other international organizations. The Republic will also support the participation of Small Island Developing States in COP29.

Parvana Valiyeva also mentioned that Azerbaijan's chairmanship of COP29 has been recognized by the international community.

The Future Pact was recently adopted as a key outcome of the Future Summit held in New York on September 22-23. This document outlines the main directions for countries' activities in the coming years and includes a specific paragraph on COP29.

She cited the views of UN Secretary-General António Guterres and Turkiye President Recep Tayyip Erdogan regarding COP29 as examples.

" A number of heads of state and government referred to COP29 in their speeches both at the Summit of the Future and during the 79th session of the UN General Assembly. UN Secretary-General António Guterres noted that COP29 is approaching and stated that the outcome of the event should be a new climate finance target. President Erdogan highlighted that financial and technological exchange, along with capacity building, are crucial for supporting developing countries in the context of climate change. He believes that COP29 in Azerbaijan will contribute to addressing these issues."

Parvana Valiyeva pointed out that during the session, developing countries called for an increase in climate financing from the current target of $100 billion during COP29 in Azerbaijan: "Additionally, the Maldives, Marshall Islands, Great Britain, Belgium, Monaco, Kenya, Fiji, and other countries referenced COP29 in their speeches in New York."

This demonstrates the significance of COP29 as a historic event and underscores Azerbaijan's leading role in combating climate change, one of the most pressing challenges facing the world today, she added. Valiyeva quoted the head of state: "President Ilham Aliyev emphasized that developed and developing countries should contribute to the solution of climate problems within their capabilities, rather than blaming each other for climate change. While our country is working towards achieving a historic agreement in Baku, the success of the Baku Agreement requires the joint efforts and constructive participation of all Parties. All parties have a collective responsibility in this matter."

She stated that COP29 calls on the international community to reach a consensus on the ambitious new climate finance goal, noting that if a consensus is not reached in Baku, it will negatively impact the future of climate negotiations.

"As President Ilham Aliyev emphasized, our country will spare no effort during COP29 to create a bridge between developed and developing countries, to reach consensus, and to ensure the success of COP29," she concluded.

In conclusion, as Azerbaijan prepares to host COP29, it stands at the forefront of international efforts to combat climate change, advocating for increased financial commitments from developed countries. The importance of climate finance cannot be overstated, as it is essential for supporting vulnerable nations and fostering global cooperation. The discussions in Baku will be pivotal in shaping future climate policies and commitments. With the potential to raise the climate finance target to $1 trillion, the outcomes of COP29 could significantly influence the trajectory of global climate action. Collaboration and consensus among all parties are crucial for success, underscoring the collective responsibility to address one of the most significant challenges facing our planet today.