COP30 unveils roadmap to scale climate finance to $1.3 trillion by 2035 | Current Affairs | Vision IAS

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    COP30 unveils roadmap to scale climate finance to $1.3 trillion by 2035

    2 min read

    Baku to Belem Roadmap to 1.3 Trillion

    The Baku to Belem Roadmap aims to raise and channel at least $1.3 trillion annually by 2035 to assist developing countries in addressing climate change impacts and transitioning to cleaner economies.

    Key Objectives

    • Transform financial promises into actionable support for renewable energy, adaptation, and post-disaster rebuilding.
    • Encourage collaboration among governments, banks, and businesses to mobilize funds.

    Funding Sources

    • Government-backed concessional funds
    • Private investments
    • South-South cooperation
    • Carbon markets
    • New sources like special drawing rights and voluntary levies

    Estimated contributions include $80 billion from concessional finance, $300 billion from multilateral banks and climate funds, $40 billion from South-South flows, $650 billion in private finance, and $230 billion from low-cost sources.

    Strategies for Financial Accessibility

    • Tripling annual disbursements by multilateral climate funds by 2030.
    • Offering loans at lower interest rates and for longer durations.
    • Tools to reduce borrowing costs, such as risk-sharing guarantees and currency loss protection.

    Addressing Debt and Climate Finance

    • Link between worsening climate impacts and deepening debt crises.
    • Developing nations paid $921 billion in interest in 2024.
    • Advocacy for debt swaps and climate-resilient debt clauses.

    Financial Needs

    • Developing countries require approximately $3.2 trillion annually by 2035 for climate and nature-related investments.
    • Allocation includes $2.05 trillion for clean energy, $750 billion for adaptation and loss and damage, $350 billion for nature and sustainable agriculture, and $50 billion for just transition measures.

    Plan Components

    • Five Key Fronts:
      1. Replenishing grants and concessional finance
      2. Rebalancing fiscal space and debt
      3. Rechanneling private finance at lower cost
      4. Revamping capacity and coordination
      5. Reshaping systems for fairer and more efficient capital movement

    UN Climate Chief Simon Stiell emphasized that the roadmap marks a new phase in global climate cooperation, advocating for practical, inclusive climate finance action to protect lives and strengthen economies.

    • Tags :
    • Baku to Belem Roadmap
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