At the UN climate conference, a high-level independent expert group proposed a significant financial target to support climate action in emerging markets and developing countries (EMDCs), excluding China. They suggested mobilizing $1 trillion annually from external sources by 2030, and $1.3 trillion by 2035, primarily through a combination of public and private finance. This investment is essential to achieve the Paris Agreement goals, with the group noting that the global climate investment needs align with about 1% of global GDP or half of the world’s defense spending.
The group’s recommendations include prioritizing private sector involvement, which could contribute to approximately half of the required funding, given the evolving investment landscape. However, balancing the roles of public and private finance remains contentious. Domestic funding will continue to cover most climate investments, especially in areas such as energy transition, where private sector contributions are expected to play a key role.
The expert group’s report, presented at COP29, outlines a projected global climate investment need of $6.3–6.7 trillion per year by 2030, and $7–8.1 trillion annually by 2035, with EMDCs (excluding China) requiring $2.3–2.5 trillion by 2030 and up to $3.5 trillion by 2035. Advanced economies and China also have substantial needs but are expected to leverage more domestic sources. Meeting these investment targets will not only drive climate resilience but also contribute significantly to sustainable development and growth worldwide.
