The Climate Cost Dilemma: Paying Now or Later?

Negotiators at COP29 in Azerbaijan were warned to invest now in poorer countries to combat climate change, with experts predicting a need for $1 trillion annually by 2030. Disagreements among nations, financial commitments, and geopolitical tensions challenge the goal of financing climate action effectively.

Negotiators convening at the COP29 climate summit in Azerbaijan face a pivotal choice: invest in climate efforts for poorer nations now or endure greater costs down the line. Experts have stressed that at least $1 trillion annually is needed by the decade's end to shift to greener energy and mitigate extreme weather impacts.

The financial focus stems from the expiring $100 billion per year target, which nations met two years late in 2022, primarily through loans. Amidst debate, the Independent High-Level Expert Group on Climate Finance recommended escalating the annual goal to $1.3 trillion by 2035 to ensure future climate stability.

However, reaching consensus remains challenging, as reluctance from Western governments prevails over increased contributions without China and other major economies joining in. The incoming U.S. administration's possible withdrawal from future deals adds further uncertainty to the discussions.

(With inputs from agencies.)