COP29: $120 billion is pledged in climate aid for poorer countries by 2030
- 13 November, 12:59
A new climate finance goal has been unveiled during COP29 UN climate summit held in Baku, Azerbaijan.
The world’s largest multilateral development banks (MDBs) announced on the second day of summit on Tuesday an ambitious goal of pledging $120 billion annually to boost funding to low- and middle-income countries by 2030. This significant commitment aims to bolster efforts to combat climate change, particularly in regions most vulnerable to its devastating impacts.
The ambitions new financial target marks a sharp increase from the $75 billion raised by MDBs in 2023 and the $60.9 billion raised in 2022. The funds are key in helping poorer nations cope with and adapt to the rising costs of extreme weather events, with $42 billion earmarked specifically for adaptation efforts.
"MDB finance is most needed for the poorer countries, as wealthier governments can typically access cheap debt more easily," Clare Shakya, global managing director of climate from the Nature Conservancy said.
Acknowledging the challenges posed by a shifting political landscape, such as the election of Donald Trump who decided to move away from the Paris Agreement, the MDBs reaffirmed their commitment to the global goal of limiting warming to 1.5°C above pre-industrial levels by 2050.
"Provision of climate finance at scale also depends on increased MDB internal resources; a larger pool of grant and concessional funds to support enhanced policy dialogue, finance public goods and mobilize private finance; and additional capital to unlock more MDB financing," the statement issued by the group said.
