The Cost of Climate Inaction: Pay Now or Pay More Later?

Negotiators at the COP29 in Azerbaijan were warned that poorer countries need at least $1 trillion annually by 2030 to cope with climate change. The summit's success hinges on setting new financial targets. Tensions arose, including diplomatic discord involving France and Azerbaijan. Funding solutions remain elusive.

At the COP29 climate talks in Azerbaijan, negotiators were starkly reminded that poorer nations require at least $1 trillion annually by the end of the decade to address climate change and transition to greener energy sources. Failure to act now will only lead to increased costs in the future, experts insist.

Finance has emerged as a central focus of the summit, with a crucial goal to establish a new target for annual contributions from wealthier nations, development lenders, and the private sector to support developing countries. The previous target of $100 billion per year was met late, mainly through loans rather than grants, prompting recipient nations to demand changes.

The high-stakes negotiations have already seen fractures, including France's climate minister canceling attendance amid tensions with Azerbaijan. Skepticism about securing the necessary funds persists, heightened by uncertainties over U.S. policy and proposed taxes on polluting sectors. Major reform efforts are underway involving multilateral banks to boost climate finance.

(With inputs from agencies.)