Richard Parks At COP29’s Finance Day, leaders and activists rallied for transformative climate financing, with a focus on supporting vulnerable nations without worsening their debt. Small Island Developing States (SIDS) highlighted their critical need for direct, non-debt-based climate funding to manage the effects of a crisis they largely did not cause.
A new report from the Independent High-Level Expert Group on Climate Finance (IHLEG) suggests that climate finance targets should reach $1.3 trillion by 2035. Sherry Madera, CEO of the environmental disclosure group CDP, noted that while the IMF’s annual climate funding estimate sits at $5 trillion, other projections go as high as $60 trillion per year. “We need action now and a realistic plan to mobilize even $1 to $3 trillion annually,” Madera emphasized, calling for collaboration across public and private sectors.
SIDS representative Joyelle Trizia Clarke of Saint Kitts and Nevis spoke out on the need for a fairer climate finance system, explaining that many SIDS are forced to take on loans for adaptation efforts. “Our adaptation financing often adds to our debt burden,” Clarke noted. “We’re making a special case for direct access to funds that won’t create further financial strain.”
For the first time at this summit, activists were permitted to protest inside the conference venue, where they demanded that wealthier countries increase their commitments. Sandra Guzman from the Climate Finance Group for Latin America and the Caribbean called for moving from “billions to trillions” in climate finance, with a focus on funding both mitigation and adaptation. “This funding is critical to addressing current climate damage and increasing resilience,” Guzman stressed.
Further discussions and potential developments are expected as government ministers gather next week in Baku to refine the climate finance agenda.