The global community requires trillions of dollars to fund climate action
In Paris, Sultan Al Jaber, the President of COP28, emphasized the urgent need for “trillions” of dollars to drive the green transition and combat global warming. He highlighted the progress made at last year’s UN negotiations in Dubai, where countries pledged to triple global renewables capacity and move away from fossil fuels. However, the lack of specific details, particularly on funding, places the responsibility on this year’s COP29 meeting in Azerbaijan.
As the impacts of climate change escalate and global heat records continue to be broken, funding commitments made this year will be crucial in incentivizing governments to strengthen their decarbonization efforts. Al Jaber, also the chief of the UAE’s national oil company Adnoc, emphasized that finance is essential for driving change at the necessary speed and scale, stressing the need for finance at all levels.
This year, countries are expected to establish a new target for annual support from wealthy nations to poorer ones for energy transitions and climate adaptation. However, the failure of wealthy nations to meet their previous goal of $100 billion per year by 2020 has eroded trust, with indications suggesting the target was only reached in 2022.
The funding needs far exceed the current available resources, with estimates suggesting emerging economies (excluding China) will require around $2.4 trillion annually by the end of the decade. Al Jaber emphasized the need to “start thinking trillions, not billions” to address the magnitude of the challenge.
To meet these funding requirements, there is a focus on expanding funding sources, including reforms to align lending from institutions like the World Bank and IMF with the goals of the Paris Agreement. Other initiatives under discussion include new taxation, particularly on polluting industries, and redirecting fossil fuel subsidies towards green development.
Al Jaber warned of the risk of losing political momentum between COP meetings, emphasizing the need for sustained action to address the pressing climate challenge.
News: The global community requires trillions of dollars to fund climate action
