Report Calls for $1 Trillion Annually for Developing Nations to Meet Paris Agreement Goals

Raise $1tr annually for developing nations to deliver on Paris pact goals: Report
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The Independent High-Level Expert Group on Climate Finance report said that the mobilisation should be about $1.3 trillion by 2035 while warning against a delayed action

A report by the Independent High-Level Expert Group on Climate Finance suggests that discussions at the 2024 UN Climate Change Conference (COP29) in Baku, Azerbaijan, should emphasize the need to secure a minimum of $1 trillion per year by 2030 in external funding from diverse channels. This financial support is crucial for emerging market and developing countries (EMDCs) excluding China to effectively meet the targets set forth in the Paris Agreement. Furthermore, the report recommends increasing this mobilization to approximately $1.3 trillion by 2035.

The report warned that any shortfall in investment before 2030 will place added pressure on the following years, creating a steeper and potentially more costly path to climate stability. “The less the world achieves now, the more we will need to invest later.”

Climate Finance Report Warns of Growing Investment Needs

The report warned that procrastination would necessitate mobilizing significantly larger funds within shorter periods to meet crucial goals. Furthermore, the report highlighted that investment requirements for adaptation, resilience, addressing loss and damage, and restoring nature would surge due to the escalating risks associated with climate change and nature.

Economists Amar Bhattacharya, Vera Songwe, and Nicholas Stern led an expert group that supported deliberations on the climate finance agenda under successive COP Presidencies since COP26. The group focused on developing policy options and recommendations to encourage and enable the public and private investments required to meet the commitments, ambitions, initiatives, and targets of the Paris Agreement.

The Glasgow Climate Pact, the Sharm el-Sheikh Agenda, and the COP28 Global Climate Finance Framework reinforced the agreement.

The Paris Agreement seeks to hold the increase in the global average temperature to well below 2°C above pre-industrial levels. It underlines the need to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels.



Global Climate Investment Needs and NCQG Disagreement at COP 29

In its third report, the expert group estimated that the global projected investment requirement for climate action to be around $6.3–6.7 trillion annually by 2030, of which $2.7–2.8 trillion is in advanced economies, $1.3-$1.4 trillion in China, and $2.3–2.5 trillion in EMDCs other than China.

Emerging Markets and Developing Countries (EMDCs), excluding China, will need 45% of the global climate investment by 2030. Sub-Saharan Africa, in particular, lags behind. These investments are vital for achieving the Paris Agreement goals and sustainable development.

HT reported on Thursday that developing countries rejected the first draft of the new collective quantified goal (NCQG), prompting co-chairs of the programme at the COP 29 to release another iteration on Wednesday morning.

A range of options, from $100 billion to $2 trillion, reflects the diverse priorities of developed and developing nations.

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