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Fossil companies contribute to climate finance, EU asks COP29

climate finance

Credit Sasun Bughdaryan su Unsplash

UN estimates: serve at least $ 2,400 billion a year in climate finance

( – Fossil oil and gas companies must also contribute to climate finance for the most vulnerable countries. Only in this way will it be possible to mobilize enough resources to make the Loss and Damage Mechanism effective, to focus the new global goals on adaptation and raise the bar of climate finance post-2025. This is the position with which the European Union wants to sit at the table of the COP29 negotiations in Baku next November.

Climate finance at COP29 in Baku

A Cop, the one in Azerbaijan, which will be played on the theme of climate finance. Progress on this front so far has been limited at recent climate summits. Last year, Cop28 managed to set up the Loss & Damage fund, but for now it is an empty shell with no resources or targets. In Baku it will be necessary to give it body – that is, funds – to make it operational. And it was precisely the tug-of-war on climate finance that led to the stalling of negotiations on the Global Goal on Adaptation and the post-2025 climate finance framework in the last 2 years.

These two agreements must be finalized by 2024. This means deciding who pays, how many resources must be mobilized, who is entitled to receive the funds, and what form they may have (loans or grants).

The dossier is hot because the amount of money to mobilize is huge. According to the second report of the Independent High-Level Expert Group on Climate Finance published in early December 2023, the most up-to-date summary on the state of climate finance and the steps to be taken in this area to achieve the Paris objectives, That at least $2,400 billion a year. Today, the climate finance target stands at $100 billion a year, and the richest countries have struggled to reach it.

It is against this background that the Brussels move must be seen. The Twenty-seven, read in the draft final document of the next Foreign Affairs Council anticipated by Reuters, want to put limits to the necessary private funding. Targeting the fossil companies.

Recognising that public finance alone cannot provide the amount needed for the new objective, additional, new and innovative sources of funding from a wide variety of sources should be identified and used, including the fossil fuel sector“, reads the draft. One of the assumptions made in recent months to collect resources from the industry is a global fossil tax. The option was put on the table by the EU itself, but it did not receive a warm welcome.

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