Find $1 trillion per year for developing countries by 2030, told COP29 | India News – Times of India

BAKU: Providing much-needed talking points at the UN Climate Conference (CO) on the nature and quality of new climate financing beyond 2025, a high-level independent expert group on the issue suggested on Thursday that negotiations should focus on mobilizing 1 trillion per year by 2030 in “external (public and private) financing from all sources” for investments in emerging markets and developing countries (EMDCs), excluding China, and approximately $1.3 trillion by 2035 to Objectives of the Paris Agreement. It was also argued that private financing could meet around half of these needs, given the changing nature of investment opportunities.
Simply put, investments from external sources for climate action would amount to only 1% of annual global GDP ($100 trillion) and only half of global defense spending ($2.4 trillion). Observers following the negotiations believe that the climate finance target after 2025 is likely to be around that figure, as it is likely to match the $1.3 trillion annual figure set by developing countries. However, the share of public and private financing in the total package will be a major bottleneck.
The 33-member independent group, tasked by the Presidencies with helping develop and put forward policy options and recommendations to encourage and enable the public and private investments and financing needed to deliver on the commitments and objectives of the UNFCCC Paris Agreement, also committed to mobilizing financing at the earliest to reduce costs.
However, one of the lead authors of the expert group’s report and its co-chair, Amar Bhattacharya, stressed that the bulk of investment in climate action would at least come from domestic financing. “Different types of investments need different types of financing… The largest amount is for the energy transition. It is also clear that a large part of that investment would come from the private sector,” Bhattacharya said.
The report, published on Thursday on the sidelines of CO2, estimates that global projected investment needs (both external and domestic) for climate action will be approximately $6.3 to 6.7 trillion per year in 2030, of which $2.7 to 2 $.8 trillion in advanced economies, and $1.3 to $1.4 trillion. trillion in China, and $2.3 to $2.5 trillion in EMDCs excluding China.