Finance Day at COP29, held on the fourth day of the summit, spotlighted crucial discussions around climate financing, with negotiators focused on funding strategies, accessibility, and ways to expedite climate resources to vulnerable regions. Small Island Developing States (SIDS) were vocal in calling for a new climate financing model that doesn’t add to their existing debt burden, urging the need for special facilities rather than loans.
A recent report by the Independent High-Level Expert Group on Climate Finance (IHLEG) urged leaders to target up to $1.3 trillion in funding by 2035. Sherry Madera, CEO of CDP, highlighted the wide range of funding estimates, from the IMF’s suggestion of $5 trillion annually to calls for as much as $60 trillion, stressing the need to move funds quickly.
SIDS representatives emphasized their unique vulnerability in the climate crisis, with Joyelle Trizia Clarke from Saint Kitts and Nevis pointing out that adaptation funds often come in the form of loans, adding to their debt. “We’re pushing for special access to climate finance,” she said, “as our limited financial capacity hinders our response to a crisis we didn’t create.”
Meanwhile, Finance Day saw COP29’s first on-site protests, with activists urging developed countries to deliver on climate finance promises. Sandra Guzman of the Climate Finance Group for Latin America and the Caribbean emphasized that the current funding of billions falls far short of the trillions required to address emissions, adaptation, and climate damages.
Further progress on the draft funding text is anticipated when government ministers arrive in Baku on Monday.