This annual funding will make it possible for countries in need to combat the effects of global warming and rapidly transition to clean, renewable energy sources.
In addition, the proposal calls for raising the climate finance target to $1.3 billion by 2035, although it is unclear how this amount will be administered. Through grants, loans or the private sector.
After this new draft resolution, it is almost certain that the climate conference that has been going on for the past two weeks in Baku, the capital of Azerbaijan, will go beyond its scheduled time.
‘Disappointing’ draft
Civil society representatives and climate activists reacted strongly to this draft proposal. Namrata Chowdhury, who works at 350.org, an international environmental organization, called the draft extremely disappointing.
“It’s a slap. It’s an insult. It is very sad that we are in this situation now. In a way, rich countries are gambling with the lives of people in developing and small island nations.”
Lidy Nakpil, an organization that campaigns for Asians on debt and development, also expressed her dismay. Climate finance should not be given in the form of loans, he said, as it increases the debt burden.
He told UN News that the biggest obstacle to developing countries taking immediate action on climate and providing essential services to their people is their debt burden.
At the same time, Jacobo Ocharan of the Climate Action Network called on all developing countries to stand firm on their demands during the negotiations, as the draft proposal is so bad.
“We will continue to say that no deal is better than a bad deal.”
What is at stake?
COP29, the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change, this time called the Climate Finance COP, is likely to agree on a new global climate agreement that will strengthen financing for climate action.
Earlier, there was an agreement to give $100 billion to developing countries every year, but it expires in 2025.
Experts believe that $1,000 billion to $1,300 billion will be needed for climate action. With this money, countries in need will be helped to deal with the damage caused by climate impacts. For them, prevention, adaptation measures will be taken and new systems of clean energy will be developed.
Last week, in support of this new goal, multilateral development banks announced plans to strengthen climate finance for low- and middle-income countries.
The target is to reach $120 billion by 2030 and $65 billion will be raised from the private sector. By 2035, efforts will be made to raise the level again.