At the ongoing COP29 climate summit in Baku, a new report from an independent high-level expert group underscores the urgent need for significant climate finance to meet global targets. The report recommends mobilizing $1 trillion annually by 2030 for developing countries to help tackle climate challenges under the Paris Agreement, with a projected increase to $1.3 trillion annually by 2035 to address escalating climate risks effectively.
The report emphasizes that delays in current investment will substantially increase future costs, creating a steeper path to climate stability. It warns that any funding gaps before 2030 will intensify the burden on subsequent years, demanding even higher investments later to meet climate goals.
Co-chaired by climate finance authorities Amar Bhattacharya, Vera Songwe, and Nicholas Stern, the expert group has been advancing climate finance agendas since COP26. Their work supports policy frameworks aimed at achieving the Paris Agreement’s investment targets, building on commitments from COP28 and previous climate accords.
Key projections in the report estimate a global need of $6.3–6.7 trillion annually by 2030, with $2.7–2.8 trillion required in advanced economies, $1.3-$1.4 trillion in China, and $2.3–2.5 trillion in emerging markets and developing countries (EMDCs) outside China. The report urges multilateral development banks (MDBs), including the World Bank, to triple their lending capacity by 2030 to facilitate this funding, part of the New Collective Quantified Goal (NCQG) for climate finance.
As COP29 unfolds, the focus remains on mobilizing long-term, sustainable financing, particularly for vulnerable nations, highlighting the immediate need for collaborative action to confront climate change.
