Finance Day at COP29: Calls for Trillions in Climate Funding and Debt-Free Support for Vulnerable Nations
On the fourth day of COP29, Finance Day brought climate finance to the forefront, with global leaders and activists focusing on the urgency of mobilizing vast resources to address the climate crisis. Small Island Developing States (SIDS) stressed the need for a finance model that provides essential aid without adding to their debt, a critical issue as they face severe climate threats.
A report from the Independent High-Level Expert Group on Climate Finance (IHLEG) set ambitious goals, recommending up to $1.3 trillion in climate financing by 2035. Sherry Madera, CEO of the global non-profit CDP, pointed out the wide estimates circulating, with the IMF calling for $5 trillion annually and other projections reaching as high as $60 trillion per year. “We need to focus on getting even a fraction of this moving now,” Madera stated, “and that requires a partnership between public and private sectors.”
SIDS representatives, like Joyelle Trizia Clarke from Saint Kitts and Nevis, highlighted that much of their adaptation financing currently comes in the form of loans. “We’re calling for special access to climate funds without adding to our debt burden,” Clarke noted, emphasizing the urgent need for a fairer finance system for vulnerable nations.
For the first time at COP29, activists staged protests within the conference venue, pressing developed nations to step up financial commitments. Sandra Guzman, from the Climate Finance Group for Latin America and the Caribbean, underscored the gap between the billions currently pledged and the trillions needed. “This funding is essential not only for emissions reduction but also for adaptation and reparations for climate damage.”
With government ministers set to arrive in Baku on Monday, further progress on the funding agenda is expected as COP29 works toward a draft agreement.
