- Azerbaijan, host of the U.N. COP29 climate summit, has stated that it will launch a new climate fund that will aim to mobilize $1 billion.
- The issue of finance is set to dominate the COP29 climate talks in Baku in November, where countries will try to agree a new global target for climate finance.
Azerbaijan, host of the U.N. COP29 climate summit, has stated that it will launch a new climate fund that will aim to mobilize $1 billion to support developing countries’ new national climate targets.
The climate summit host hopes the new fund, which will be housed in the capital city of Baku and overseen by a multi-national board of shareholders, will be capitalized with contributions from 10 fossil-fuel producing countries as well as oil and gas companies.
Azerbaijan had initially sought a levy on fossil-fuel production to raise funds for tackling climate change, but changed course after facing resistance from some countries.
“Countries rich in natural resources should be at the forefront of those addressing climate change,” said COP29 President-Designate Mukhtar Babayev. “We are calling on donors to join us so that we can fulfil the COP29 plan to enhance ambition and enable action.”
The issue of finance is set to dominate the COP29 climate talks in Baku in November, where countries will try to agree a new global target for climate finance that rich nations will transfer to poorer countries each year from 2025.
At a media briefing on 19 July, Babayev did not say which donor countries or companies had been approached but said Azerbaijan would be a founding contributor with an as-yet-decided initial contribution.
The fund would receive annual transfers from its contributors, and would dedicate 20 per cent of revenues generated from investments to a Rapid Response Funding Facility that would help the most vulnerable countries respond to climate disasters.
In the coming weeks, Azerbaijan will launch a working group of economists and other experts to create a formula for potential donors to decide how much they will contribute and a process for how developing countries can access the fund.
The UN’s climate chief Simon Stiell said on Friday that success at COP29 hinges on progress around boosting climate finance.
“Progress in Baku isn’t just about green new numbers. It’s about improving climate finance delivery so that it meets developing countries needs now and in the future,” he said.