Climate Finance Needs Could Reach USD 1.3 Tn Annually By 2035: Report
Date
11/14/2024 2:09:53 PM
(MENAFN- KNN India)
New Delhi, Nov 14 (KNN)
A comprehensive report released during the COP29 climate summit in Baku reveals that developing countries will require USD 1 trillion in annual climate finance by 2030, with projections indicating an increase to USD 1.3 trillion by 2035 to meet global climate targets.
The findings, published by an independent high-level expert group co-chaired by Amar Bhattacharya, Vera Songwe, and Nicholas Stern, emphasise that delayed investment could result in escalating future costs.
"Any shortfall in investment before 2030 will place added pressure on the years that follow, creating a steeper and potentially more costly path to climate stability," the report states.
Global climate investment requirements are projected to reach USD 6.3–6.7 trillion annually by 2030, distributed across advanced economies (USD 2.7–2.8 trillion), China (USD 1.3-USD 1.4 trillion), and emerging markets and developing countries outside China (USD 2.3–2.5 trillion).
The expert group, which has been advancing the climate finance agenda since COP26, aims to support policy initiatives aligned with the Paris Agreement and subsequent climate accords from Glasgow, Sharm el-Sheikh, and COP28.
The report specifically highlights the crucial role of multilateral development banks, including the World Bank, recommending a threefold increase in their lending capacity by 2030 as part of the New Collective Quantified Goal for climate finance.
This expansion is deemed essential for meeting the growing financial demands of climate action.
As discussions continue at COP29, the report underscores the importance of developed nations' collaboration in mobilising resources for vulnerable countries, reinforcing the global imperative for immediate and sustained climate action.
(KNN Bureau)
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