250 billion per year of financing which only makes people happy

The presidency of the 29th United Nations Conference of the Parties (COP29) on climate change released at midday (Spanish time) what is supposed to be the latest draft agreement on climate change.e the new quantified objective of collective climate financing (NCQG).

The text urges “actors” to “mobilize financing for developing countries to the tune of, at least $1.3 trillion per year until 2035“However, how to achieve this is unclear.

What this draft agreement is clear – or partly, because there are other texts to publish and renegotiate – is that Developed countries are now investing up to $250 billion per year until 2035 through various sources. The money would reach the most vulnerable (developing) states through public and private, bilateral and multilateral funding. Additionally, it opens the door to alternative sources of financing.

This $250 billion would be the first step in getting the $1.3 trillion that developing countries are asking for (and need). Of course, what the COP presidency does in its text is “invite” member countries to “make additional contributions”. Among them, they also include cooperation between the countries of the South.

The idea of ​​the organizers of this year’s summit is that the richest states – even those that are not – voluntarily make these contributions, either to reach the target of $250 billion or to supplement it. In doing so, Baku is giving in to the demands of Chinese negotiators: that the investment be voluntary and not compulsory.

A small adaptation

The project recognizes the budgetary constraints and increasing costs of adaptation resulting from the impacts of climate change. In this context, this also implies the need to allocate public resources and subsidies to this aspect.

Furthermore, the text underlines the need “very advantageous financing”. It makes special mention of financing adaptation and response to loss and damage in developing countries, particularly those that are particularly vulnerable and have significant capacity constraints. Like small island states.

Yes to subsidies

The COP presidency recognizes the need for public funding and in the form of grants, rather than loans. And “decides” that “a significant amount of public resources will be provided through the operational entities of the financial mechanism, the adaptation fund, the least developed countries fund, the special climate change fund and other mechanisms relevant, equitably distributed across all geographic regions.

The problem, again, is that it doesn’t indicate how.

News in update

We are working to expand this information. Soon, the EL ESPAÑOL editorial team will offer you an update of all the data on this news.

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