It’s climate finance – and this year is a bellwether of the world’s ability to provide it at scale.
At last year’s UN climate summit (COP29), wealthy nations agreed for the first time in 15 years to increase the amount of money they provide for climate mitigation and adaptation in developing nations. The new target – $300 billion annually by 2035 – is better than the previous goal of $100 billion a year by 2020. But it’s still a far cry from what’s needed. That’s why leaders from all nations also agreed that all actors should work together to mobilize $1.3 trillion per year by 2035 for the countries most vulnerable to the impacts of climate change.
This $1.3 trillion recognizes the gap between what developing nations can realistically provide domestically for things like clean energy development and climate-smart agriculture, and what will be needed from external sources. It will be extremely difficult to secure the $1.3 trillion. But make no mistake: We must do it.
We know what will happen without adequate climate finance: Resource-strapped communities will suffer the most from increasingly devastating droughts, floods, wildfires and heatwaves, even though they’re least responsible for causing the problem. That’s why delivering the $1.3 trillion isn’t just about finance – it’s about justice.
We also know that without significant emissions reductions from allnations -wealthy and developing alike – the world will not meet its decarbonization goals, exposing everyone to the existential crisis that is climate change. Finance from richer countries to developing ones isn’t charity; it’s an investment in a safer world.
Finally, ambition and finance are two sides of the same coin. You can’t get ambitious nature and climate policies without the finance to execute them. Finance and ambition are a virtuous cycle – and this is the year to unlock both. So let’s dive deep into what’s needed to achieve the $1.3 trillion goal, and what to watch this year to see if it’s coming to fruition.
