Ahead of high-level ministerial, rich countries urged to support adoption of a global, debt-free climate finance target of at least $1 trillion annually
Ahead of the high-level ministerial dialogue on the new global climate finance target (NCQG) this week in Baku, climate experts urge rich countries to stop dragging their feet and support an agreement on at least $1 trillion annually in grants and grant-equivalent finance at COP29.
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Contact:
Nicole Rodel, Oil Change International – nicole@priceofoil.org
Valentina Stackl, Oil Change International – valentina@priceofoil.org
Ahead of high-level ministerial, rich countries urged to support adoption of a global, debt-free climate finance target of at least $1 trillion annually
8 October 2024 – Ahead of the high-level ministerial dialogue on the new global climate finance target (NCQG) this week in Baku, climate experts urge rich countries to stop dragging their feet and support an agreement on at least $1 trillion annually in grants and grant-equivalent finance at COP29.
Oil Change International research shows rich countries have the means to mobilize $5 trillion every year for climate action at home and abroad (NCQG) by shifting fossil fuel subsidies, making polluters pay, and reforming unfair global financial rules. An ambitious target is essential for countries to deliver last year’s COP28 commitment to transition away from fossil fuels. Strong finance targets will unlock strong national climate plans (NDCs) due in 2025 that phase out fossil fuels and immediately end new fossil fuel expansion.
In the context of a worst in history debt crisis for developing countries, we urgently need grant-based and highly concessional financing, not more debt-inducing loans, to fulfill the landmark COP28 decision to phase-out fossil fuels, especially for adaptation, loss and damage, and key mitigation projects.
In their efforts to support a robust NCQG agreement in Baku, negotiators can build on last year’s UN climate talks in Dubai and at the G20 building foundation for transitioning away from fossil fuels, implementing billionaire taxes, and increasing Global South representation in International Financial Institutions.
Bronwen Tucker, Public Finance co-lead at Oil Change International, said:
“Leaders must work together to unlock trillions to finance an equitable phaseout of fossil fuels, it’s simple: reform fossil fuel subsidies, tax big polluters, and change unfair global financial rules. There is no shortage of public money available for rich countries to pay their fair share for climate action at home and abroad.
“Rich countries like the UK, Canada, and Denmark that claim to be climate leaders are instead blocking negotiations, refusing to put a price tag on this critical climate finance target, and creating distraction with voluntary energy finance proposals, greenwashing oil money funds, and carbon credits.
“At COP28, world leaders agreed to transition away from fossil fuels, and now it’s time to pay up to make an equitable transition a reality. At COP29, they must deliver a concrete roadmap for $1 trillion in annual climate finance by 2025. This is essential to save lives and avoid complete climate catastrophe.”