High-level report calls for $1 trillion boost in climate finance at COP29

One of the report's key projections is the global investment need for climate action, estimated at $6.3–6.7 trillion annually by 2030.

In Short

• One of the report’s key projections is the global investment need for climate action
• Any delays in investment now could escalate future costs
• By 2035, the report suggests this funding requirement could rise to $1.3 trillion

As the COP29 climate summit continues in Baku, a new report highlights an urgent call for climate finance to meet critical global targets.

Published by an independent high-level expert group, the report recommends mobilising $1 trillion annually for developing countries by 2030, a move that would help address climate challenges under the Paris Agreement.

By 2035, the report suggests this funding requirement could rise to $1.3 trillion annually to effectively address mounting climate risks.

The report warns that any delays in investment now could escalate future costs. "Any shortfall in investment before 2030 will place added pressure on the years that follow, creating a steeper and potentially more costly path to climate stability. The less the world achieves now, the more we will need to invest later," the report notes.

This urgent message further confirms the need for immediate, sustained action to meet global climate goals.

The expert group, co-chaired by climate finance authorities Amar Bhattacharya, Vera Songwe, and Nicholas Stern, has been working on the climate finance agenda under COP presidencies since COP26.

The group aims to support policy options and recommendations that would enable the Paris Agreement’s public and private investment goals, reinforced by agreements from Glasgow, Sharm el-Sheikh, and the Global Climate Finance Framework from COP28.

One of the report’s key projections is the global investment need for climate action, estimated at $6.3–6.7 trillion annually by 2030. This includes $2.7–2.8 trillion in advanced economies, $1.3-$1.4 trillion in China, and $2.3–2.5 trillion in emerging markets and developing countries (EMDCs) outside China.

A central focus is the role of multilateral development banks (MDBs), including the World Bank, in facilitating this funding. The report calls for MDBs to significantly expand their lending capacity, recommending a threefold increase by 2030 as part of the New Collective Quantified Goal (NCQG) for climate finance.

With climate finance as a top agenda at COP29, the report points to the necessity for developed countries to collaborate in mobilising resources to aid vulnerable nations.

As COP29 progresses, the call for robust, long-term financing for climate action in developing countries remains a focal point, stressing the global urgency to address climate change now rather than later.