The 2024 United Nations Climate Change Conference, known as COP29, has kicked off amid swirling expectations and pressing needs globally. Set against the backdrop of Baku, Azerbaijan, this conference has turned the spotlight on the urgent requirement for enhanced climate finance for developing nations already facing the brunt of climate-related impacts.
This year, negotiations focus heavily on the New Collective Quantified Goal (NCQG) related to climate finance—a framework aimed at ensuring financial support to vulnerable nations. Initially established as part of the Paris Agreement, the NCQG is expected to usher in significant changes over the next decade, reflecting the shifting realities of climate action implementation.
Historically, the ambition was to mobilize $100 billion annually by 2020, yet the international community only hit this milestone two years late, with $115.9 billion reported for 2022. Both developing and developed nations are now pushing for clear objectives and commitments moving forward, as projected needs by 2030 are estimated to balloon to around $6 trillion to meet the immediate climate action demands of developing countries.
One major area under debate at COP29 is the Loss and Damage Fund, established during last year’s COP27 after persistent lobbying from vulnerable countries. Reports reveal these nations incurred $109 billion worth of damage due to climate change impacts alone last year, and projections suggest the need could rise between $200 billion and $400 billion annually by 2030. Critical themes surrounding the effectiveness of the fund and its operational structure are looming large.
The Loss and Damage Fund has so far amassed $702 million, with countries pledging varying levels of support. Notably, the European Union and others committed $673 million, yet observers are cautious, as many are still awaiting the swift disbursement of these funds. The pace at which these resources become accessible will be key to determining their effectiveness.
Backdrop negotiations have also highlighted disparities between the pledges by wealthier nations and the actual funds flowing to climate-vulnerable countries. A sobering statistic reveals climate financial inflows to Africa comprise only 3% of total global finance and remain fragmented. Climate funding must shift from convoluted bureaucratic processes to more straightforward, efficient mechanisms to address urgent needs.
Meanwhile, the conversation has turned to the role of China—often viewed as one of the new heavyweights capable of contributing meaningfully to global climate finance. Chinese Vice Premier Ding Xuexiang pointed out their commitment to mobilizing billions for climate initiatives within developing nations. Since 2016, China has reportedly provided CNY 177 billion (around $24.5 billion) to support climate projects. With the NCQG discussions underway, world leaders are watching closely to see if China will step up substantially to take on its share of global climate responsibilities.
From Italy, another narrative is brewing. The Italian Climate Fund, set to allocate €840 million annually until 2026, is under scrutiny as organizations assess whether it sufficiently meets the commitments Italy has made on the international stage. Current estimates indicate Italy's contribution falls short of its fair share. With COP29's discussions advancing, the country will face pressure to amplify its contributions.
What’s becoming increasingly evident is the need for enhanced cooperation across nations to diversify sources of funding and establish clear, actionable plans for climate finance so developing nations are not left grappling with the fallout of climate change alone. The questions remain: How will these dialogues shape the future frameworks of support? And will nations uphold their pledges effectively and transparently?
Over the next few days of COP29, the buzz will remain focused on whether the participating nations can forge attainable agreements moving forward. The stakes are high, and for many, this conference could yield possibly their last opportunity to seek meaningful climate finance agreements before it becomes too late.
