Racing Against Time: Escalating Climate Finance Needs

A new study highlights the urgent need to increase global climate finance from USD 1.5 trillion to USD 7.4 trillion annually by 2030 to limit global warming to 1.5°C. Despite past progress, massive investments are still required, especially in emerging markets, to meet climate goals.

Global efforts to mitigate and adapt to climate change have achieved significant financial backing, with investments reaching nearly USD 1.5 trillion. However, to prevent the planet's temperature from exceeding a rise of 1.5 degrees Celsius, an unprecedented financial commitment is necessary, a new report reveals.

The 'Global Landscape of Climate Finance 2024: Insights for COP29,' issued by the Climate Policy Initiative (CPI), underscores the pressing gap between current contributions, which stand at just 1% of global GDP, and the needed financial surge. Emerging and developing economies may need to allocate roughly 6.5% of their GDP to meet climate targets by 2030.

Amidst calls for enhanced global synergy at the UN climate summits, the report warns that continued reliance on fossil fuels, coupled with inadequate funding measures, could lead to economic losses potentially fivefold by 2100 compared to the financial investments necessary by 2050 to avert crossing the crucial 1.5-degree Celsius threshold.

(With inputs from agencies.)