Climate finance billions at stake at COP29

Published

1 year ago

November 3, 2024

Climate finance billions at stake at COP29

Rich nations will be under pressure at this month’s UN COP29 conference to substantially increase the amount of money they give to poorer countries for climate action.

But there is deep disagreement over how much is needed, who should pay and what should be covered, ensuring that “climate finance” will top the agenda at COP29 in Baku.

– What is climate finance? –

It is the buzzword in this year’s negotiations, which run from November 11 to 22, but there is not one agreed definition of climate finance.

In general terms, it is money spent in a manner “consistent with a pathway towards low greenhouse gas emissions and climate-resilient development”, as per phrasing used in the Paris Agreement.

That includes government or private money for clean energy like solar and wind, technology like electric vehicles, or adaptation measures like dykes to hold back rising seas.

But could a subsidy for a new water-efficient hotel, for example, be counted? It is not something the COP summits have addressed directly.

At the annual UN negotiations, climate finance has come to refer to the difficulties the developing world faces getting the money it needs to prepare for global warming.

– Who pays? –

Under a 1992 UN accord, a handful of rich countries most responsible for global warming were obligated to provide finance.

In 2009, the United States, the European Union, Japan, Britain, Canada, Switzerland, Norway, Iceland, New Zealand and Australia agreed to pay $100 billion per year by 2020.

They only achieved this for the first time in 2022. The delay eroded trust and fuelled accusations that rich countries were shirking their responsibility.

At COP29, nearly 200 nations are expected to agree on a new finance goal beyond 2025.

India has called for $1 trillion a year and some other proposals go higher, but countries on the hook want other major economies to chip in.

They argue times have changed and the big industrialised nations of the early 1990s represent just 30 percent of historic greenhouse gas emissions today.

In particular, there is a push for China — the world’s largest polluter today — and the oil-rich Gulf countries to pay. They do not accept this proposal.

– What’s being negotiated? –

Experts commissioned by the UN estimate that developing countries, excluding China, will need $2.4 trillion per year by 2030.

But the line between climate finance, foreign aid and private capital is often blurred and campaigners are pushing for clearer terms that specify where money comes from, and in what form.

In an October letter to governments, dozens of activist, environment and scientific groups called on rich nations to pay developing countries $1 trillion a year in three clear categories.

Some $300 billion would be government money for reducing planet-heating emissions, $300 billion for adaptation measures and $400 billion for disaster relief known as “loss and damage” funds.

The signatories said all the money should be grants, seeking to redress the provision of loans as climate finance that poorer countries say compounds their debt woes.

Developed countries do not want money for “loss and damage” included under any new climate finance pact reached at COP29.

– Where will they find the money? –

Today, most climate finance aid goes through development banks or funds co-managed with the countries concerned, such as the Green Climate Fund and the Global Environment Facility.

Campaigners are very critical of the $100 billion pledge because two-thirds of the money was given as loans, not grants.

Even revised upwards, it is likely any new pledge from governments will fall well short of what is needed.

But this commitment is viewed as highly symbolic nonetheless, and crucial to unlocking other sources of money, namely private capital.

Financial diplomacy also plays out at the World Bank, the International Monetary Fund and the G20, where this year’s host Brazil wants to craft a global tax on billionaires.

The idea of new global taxes, for example on aviation or maritime transport, is also supported by France, Kenya and Barbados, with the backing of UN chief Antonio Guterres.

Redirecting fossil fuel subsidies towards clean energy or wiping the debt of poor countries in exchange for climate investments are also among the options.

COP29 host Azerbaijan, meanwhile, has asked fossil fuel producers to contribute to a new fund that would channel money to developing countries.

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MUFG Seeks Stake In Indian Finance Company

Published

5 hours ago

January 30, 2026

Press Room

MUFG Seeks Stake In Indian Finance Company

Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank by assets and market cap, is close to buying a 20% minority stake in India’s Shriram Finance Limited (SFL), for an investment of $4.4 billion.

SFL is one of the largest non-banking financial companies (NBFC), with assets under management totalling approximately $31 billion.

The negotiations are ongoing, and the agreement is not yet confirmed. The price and stake size could change, the agreement may be delayed, or even fall apart in the coming days.

Shriram’s shares rose nearly 50% this year on India’s National Stock Exchange and the Bombay Stock Exchange, giving a market value of around $18 billion, marking its fifth straight year of positive returns.

The reasons for the rally were: SFL’s strong fundamentals; the Reserve Bank of India’s easing for NBFCs; India’s rising Gross Domestic Product, which is increasing demand for SFL’s core lending segments; SFL’s final 150% dividend payout; and the proposed agreement with MUFG.

MUFG is not the first bank to propose a stake in an Indian bank. Sumitomo Mitsui Financial Group (SMFG), Japan’s second-largest bank, acquired a 20% stake in Yes Bank for $1.6 billion in May 2025, via secondary purchases from the State Bank of India and other banks. SMFG later became the single largest shareholder, acquiring a 24.2% stake in Yes Bank. It has already deployed almost $5 billion and is seeking to expand lending operations and increase employee strength.

Yet another Japanese financial group, Mizuho Securities, a unit of Mizuho Financial Group, is set to acquire a majority stake in Indian investment bank Avendus from KKR for up to $523 million in December 2025. This move will make Avendus a consolidated subsidiary of the Japanese financial group.

Some of the factors that attracted Japanese investors were India’s economic growth projected to grow at 6.5% in 2026, outpacing Japan’s stagnant domestic market, a 1.4 billion consumer base, low banking penetration, Reserve Bank of India’s robust regulatory reforms, eased foreign investment norms, and strong Japan-India collaboration in infrastructure projects like the Mumbai-Ahmedabad bullet train.

Since announcing its deal with Shriram, MUFG has reportedly seen increased interest from automakers looking to boost sales through preferential financing. Should the acquisition close, MUFG plans to have staff in Tokyo and Singapore to develop and execute these deals.

Finance

The big retirement question Aussies are asking right now: ‘We see a jump’

Published

17 hours ago

January 29, 2026

Press Room

The big retirement question Aussies are asking right now: ‘We see a jump’

HESTA CEO Debby Blakey says there’s no better time than right now to look at your super. (Source: HESTA/Getty)

January is nearly behind us and most Australians are now back into the work grind, with kids returning to school to embark on another year. With things settling back to normal, it’s prompted one big retirement question to come to the minds of many workers.

Google Trends data shows searches for ‘how much do you need to retire’ surge as the school year begins. It’s one of four major spikes, along with around the Easter holidays, end of the financial year and the September school holidays.

Super fund HESTA has reported a surge in Australians using its retirement planning tool at the start of the school year, with activity increasing by more than 40 per cent in late January and early February in 2025.

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“We regularly see a jump in planning activity around this time of year after many members have enjoyed quality time with family and friends over the festive season – be it BBQs by the beach or relaxing by the pool,” HESTA CEO Debby Blakey said.

“As Australians look ahead to the rest of the year, many ask one simple question: when can I retire?”

Do you have a story to share? Contact tamika.seeto@yahooinc.com

There’s obviously no one-size-fits-all answer to this question.

While there’s no set retirement age in Australia, to be eligible for the Age Pension, you’ll need to be at least 67.

In terms of how much money you need, the Association of Superannuation Funds of Australia’s standard estimates a single would need $595,000 and a couple $690,000 in their superannuation to retire comfortably at the age of 67. This assumes you receive a part age pension and own your home outright.

If you’re one of the many Aussies dreaming about retirement, Blakey said now was the time to take action.

“The reality is there is no better time than right now to take action on your super and it’s never too late to make a difference to your financial future,” she said.

“There are many small actions people can take to support their journey to a dignified retirement.”

To start with, Blakey said it was important to understand how much super you had, how much your employer was contributing, where your super is invested and how much it’s grown over the long-term.

The super fund’s research found a third of people were only checking their balance once a year or less, while 43 per cent were more likely to check it in times of market turbulence.

Finance

Austin council member Paige Ellis may have violated campaign finance rules again

Published

1 day ago

January 29, 2026

Press Room

Austin council member Paige Ellis may have violated campaign finance rules again

Austin City Council Member Paige Ellis listens to public testimony on Wednesday, Aug. 16, 2023 at City Hall. The District 8 representative, who is running for re-election this year, has previously faced scrutiny for campaign finance practices.

Mikala Compton/Austin American-Statesman

Austin City Council member Paige Ellis has again accepted campaign contributions that appear to exceed city limits, according to recent campaign finance reports, raising questions about compliance with local election law as she seeks a third term representing Southwest Austin.

Under current city rules, candidates for City Council or mayor may not accept more than $450 per contributor per election. The limit applies to individual donors, with exceptions only for the candidate and small-donor political committees.