COP29: Trillions Of Dollars To Be Mobilized For Climate Finance

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COP 29 News

Climate Finance,NCQG

Simi Thambi covers the intersection of climate science and finance. She has worked with leading organizations, including the United Nations, the International Monetary Fund, and the Government of India, on sustainability themes across agriculture, land-use change, and energy sectors.

Nations Climate Change Conference COP29, an event held by United Nations Framework Convention on Climate Change in Baku Olympic Stadium. COP29, running from November 11-22 focuses on carbon markets and sustainability and mitigation funding. World leaders are gathered in Baku, Azerbaijan, for the COP 29 on Climate Change. As the conference enters its final day tomorrow, the atmosphere is charged with anticipation.

One of the key outcomes expected from this year's COP is this exact number which will become the new collective quantifiable goal, popularly referred to as NCQG. There is a high expectation that countries will be able to reach a consensus on a quantifiable number, which can be the North star to mobilize funds to address the urgency of climate change.

The document released today also states that it has been decided that there will be minimum allocation floors for the Least Developing Countries and Small Island developing countries of at least USD 220 billion and at least USD 39 billion, respectively. Deciding such a minimum allocation floor is a big step as these countries are particularly vulnerable to the extreme impacts of climate change. In March 2023, Malawi, in the African continent, was devastated by a tropical cyclone.

The document that came out today clarified both the above concerns. It states that the new collective quantified goal on climate finance will be mobilized through various sources, including public, private, innovative and alternative sources, noting the significant role of public funds. The decision to include the private sector is a significant step, as it provides an entry door for the private sector to be more actively involved in climate action.

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