15th November 2024
How much climate finance is needed?
“This year’s UN climate summit, being held in Azerbaijan, is focused on finance, and specifically the new collective quantified goal (NCQG) for climate finance, required under the 2015 Paris agreement. Rich countries are bound under the agreement to provide climate finance to help developing nations cut their greenhouse gas emissions and cope with the impacts of the climate crisis. The current finance goal, of providing $100bn a year to poor countries, is widely acknowledged to be inadequate, and most rich countries agree the figure needs to be several times higher.
Poor countries are asking for finance of about $1tn a year by 2035, based on widely accepted estimates of their needs. Rich countries are likely to agree to a considerably smaller sum, perhaps about half that amount, to be paid from their exchequers and through multilateral institutions such as the World Bank.
The gap could be met from a variety of means, including new taxes on fossil fuels or the diversion of existing subsidies to cleaner ends. These “innovative sources of finance” will not be fully articulated or agreed at Cop29 and will need further work.” (1)
The Green Tau 