Finance
Climate finance: what you need to know ahead of COP29
Developing countries will need trillions of dollars in the years ahead to deal with climate change — but exactly how much is needed, and who is going to pay for it?
These difficult questions will be wrestled at this year’s United Nations climate conference, known as COP29, being hosted in Azerbaijan in November.
– What is climate finance? –
It is the buzzword in this year’s negotiations, but there isn’t one agreed definition of “climate finance”.
In general terms, it’s 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 channelled into low-carbon investments in clean energy like wind and solar, technology like electric vehicles, or adaptation measures like dikes to hold back rising seas.
But could a subsidy for a new water-efficient hotel, for example, be included in climate finance?
The COPs — the annual UN-sponsored climate summits — have never defined it.
– How much is needed? –
The Climate Policy Initiative, a nonprofit research group, estimates that $10 trillion per year in climate finance will be needed between 2030 and 2050.
This compares to around $1.3 trillion spent in 2021-2022.
But in the parlance of UN negotiations, climate finance has come to refer to something more specific — the difficulties that developing nations face getting the money they need to adapt to global warming.
The line between climate finance and conventional development aid is sometimes blurred.
But experts commissioned by the UN estimate that developing countries, excluding China, will need an estimated $2.4 trillion per year by 2030.
– Who will pay? –
Under a UN accord adopted in 1992, a handful of countries deemed wealthy, industrialised, and the most responsible for global warming were obligated to provide compensation to the rest of the world.
In 2009, these countries — the United States, the European Union, Japan, the United Kingdom, Canada, Switzerland, Turkey, Norway, Iceland, New Zealand and Australia — committed to paying $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 — but deep divisions remain over how much should be paid, and who should pay it.
India has called for $1 trillion annually, a ten-fold increase in the existing pledge, but countries on the hook to pay it want other major economies to chip in.
They argue times have changed since 1992. Economies have grown, new powers have emerged, and today the big industrialised nations of the early 1990s represent just 30 percent of historic greenhouse gas emissions.
In particular, there is a push for China — the world’s largest polluter today — and the Gulf countries to pay, a proposal they do not accept.
– 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 distributed as loans, often at preferential rates, but seen as compounding debt woes for poorer nations.
Even revised upwards, it is likely any future commitment will fall well short of what is needed.
But it 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 hosts Brazil want 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.
Another proposal, from COP29 host Azerbaijan, has floated asking fossil fuel producers to contribute to a new fund that would channel money to developing countries.
As for the “loss and damage” fund created at COP28 to support vulnerable nations cope with extreme weather events, it is still far from up and running, with just $661 million pledged so far.
bl-eab/np/yad/sw
Finance
New Funding Models Needed As Global Health Faces Growing Financial Strain – Health Policy Watch
Global health is facing a funding crisis. Aid is shrinking, debt is rising, and the needs are only increasing. According to Christoph Benn of the Joep Lange Institute and Patrik Silborn of UNICEF Afghanistan, health systems will need to fundamentally rethink how they finance and sustain care.
On a recent episode of the Global Health Matters podcast, host Gary Aslanyan was joined by these two experts, who said “innovative finance” has become central to discussions on sustaining health systems.
Benn said that while the term is widely used, few agree on what it actually means. He described it as a “spectrum” of approaches, ranging from philanthropic grants and conditional funding to private-sector investment models that expect financial returns.
“It has frustrated us deeply that so many people are talking about innovative finance, but very few actually know what they’re talking about,” Benn said.
Silborn emphasised that these mechanisms should not be treated as one-size-fits-all solutions. Instead, financing models must be designed around specific problems whether that means raising new funds, improving efficiency, or linking payments to measurable outcomes.
Drawing on his experience in Rwanda, Silborn described how a results-based funding model tied disbursements directly to performance, helping the country to maintain progress against major diseases despite reduced funding.
Both experts stressed that private-sector engagement requires a clear understanding of incentives.
“Private corporations are not charities,” Benn said. They can, however, contribute through marketing partnerships, technical expertise, or investment models that align financial returns with social outcomes.
Looking ahead, Benn pointed to targeted taxes and debt swaps as among the most scalable tools. Still, both warned that innovative finance is not a substitute for public responsibility.
“It only works when it is designed to solve real problems in specific contexts,” Benn said, underscoring that strong systems and governance remain essential to any lasting solution.
Listen to the full episode >>
Read more about Global Health Matters podcasts on Health Policy Watch >>
Image Credits: Global Health Matters podcast.
Combat the infodemic in health information and support health policy reporting from the global South. Our growing network of journalists in Africa, Asia, Geneva and New York connect the dots between regional realities and the big global debates, with evidence-based, open access news and analysis. To make a personal or organisational contribution click here.
COLUMBIA, S.C. (WCIV) — Dozens of local elected officials from across South Carolina are urging state lawmakers to pass legislation that would allow cities, counties and school districts to deposit taxpayer funds in the financial institution of their choice, including qualified credit unions.
The Palmetto Public Deposits Coalition, formed by more than 40 mayors, county council members and municipal leaders have signed a joint letter calling on the General Assembly to advance the South Carolina Financial Freedom Act, a bill that, if signed, would lift long-standing restrictions that require public entities to deposit funds exclusively in commercial banks, even though state law already allows credit unions to accept public deposits.
The coalition argues the current system limits competition and prevents local governments from seeking potentially better rates, lower fees and more responsive service.
READ MORE | Lowcountry residents feel squeeze as inflation rises 25% over five years
“Local governments should have the same financial freedom that families and businesses have — the ability to choose the financial institution that best meets their needs,” Rick Osborn, chairman of the Palmetto Public Deposits Coalition, explained. “This commonsense reform will introduce healthy competition, help stretch taxpayer dollars further, and strengthen partnerships with community-focused financial institutions that are deeply invested in South Carolina.”
The efforts also won support from the South Carolina Association of Counties and the Municipal Association of South Carolina, whose boards have formally endorsed expanding deposit options. Their backing signals broad agreement among local government officials that the law should be modernized.
In their letter to lawmakers, the coalition argued that permitting credit unions to hold public deposits would restore financial choice and improve outcomes for residents.
“This legislation is about giving local leaders more tools to serve residents effectively and make responsible financial decisions,” said Goose Creek Mayor Greg Habib, one of the signatories.
READ MORE | Treasury to hold conferences on AI regulation reductions for banks
The Financial Freedom Act would allow, but not require, public entities to deposit funds in qualified credit unions. Coalition members said the bill is not designed to favor one type of institution over another, but to encourage competition in a market currently limited to commercial banks, many of which operate outside the state.
The Palmetto Public Deposits Coalition said it will continue working with local leaders, state associations and lawmakers as the legislation moves through the current session.
The FTSE 100 (^FTSE) was hovering around the flatline on Friday, while European stocks headed lower, as traders shrugged off Donald Trump’s latest pause on striking Iran’s energy infrastructure.
On Thursday night, the US president extended the deadline for Iran to open the strait of Hormuz by 10 days, meaning the new date would be 6 April. He claimed that talks were “going very well”. However, Iran denied it was “begging to make a deal”, despite Trump’s earlier claims.
It comes after Wall Street posted its biggest daily loss since the Iran war began on Thursday.
The Wall Street Journal also reported on Thursday that the US was considering sending as many as 10,000 additional troops to the Middle East.
Tony Sycamore, market analyst at IG, said Trump has extended the uncertainty gripping markets.
“While the rhetoric around de-escalation and dialogue is certainly preferable to outright conflict, the market appears to be growing increasingly numb to President Trump’s verbal reassurances. By extending the deadline, it effectively kicks the can down the road, pushing back any concrete resolution regarding the reopening of the Strait of Hormuz. This, in turn, simply extends the uncertainty weighing on markets and the broader global economy.”
Elsewhere, UK retail sales dipped by 0.4% in February, following a rise of 2.0% in January, the Office for National Statistics revealed. In the December to February quarter, sales volumes were up 0.7% compared with the previous three months.
-
London’s benchmark index (^FTSE) was hovering around the flatline in early trade
-
Germany’s DAX (^GDAXI) dipped 0.5% and the CAC (^FCHI) in Paris headed 0.2% into the red
-
The pan-European STOXX 600 (^STOXX) was down 0.3%
-
Wall Street is set for a muted start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all lacklustre.
-
The pound was 0.1% down against the US dollar (GBPUSD=X) at 1.3311
Follow along for live updates throughout the day:
LIVE 4 updates
Download the Yahoo Finance app, available for Apple and Android.
2 students killed, 7 other people injured in Tennessee bus crash during school field trip
Three Detroit Pistons Players That Have Impressed Most Without Cade Cunningham
People We Meet: Ranjit Brar’s ‘horrible’ road led him back to San Francisco
Cowboys Showing Significant Interest in Son of Philadelphia Eagles Legend
Mock Draft Roundup: Miami Defensive End Is Popular Pick For Lions
Florida High School Football Rankings: Top 25 teams – Oct. 21
How old is Bo Nix? What to know about Oregon quarterback ahead of 2024 NFL Draft
Cleary's 21 help Le Moyne down Central Connecticut State 69-64 in OT
99th annual Pony Swim held in Virginia
Indiana Members Credit Union announced as new anchor tenant at Bottleworks District
2 students killed, 7 other people injured in Tennessee bus crash during school field trip
Dem senators dodge crucial question on illegal alien accused of killing Chicago college student
EU Parliament unblocks key political hurdle in digital euro talks
Man arrested in plot to firebomb Palestinian activist’s home after undercover op
WATCH: Senate hearing goes silent after Angel Father confronts top Dem over daughter’s death
-
Detroit, MI1 week agoDrummer Brian Pastoria, longtime Detroit music advocate, dies at 68
-
Movie Reviews1 week ago‘Youth’ Twitter review: Ken Karunaas impresses audiences; Suraj Venjaramoodu adds charm; music wins praise | – The Times of India
-
Sports1 week agoIOC addresses execution of 19-year-old Iranian wrestler Saleh Mohammadi
-
New Mexico6 days agoClovis shooting leaves one dead, four injured
-
Business1 week agoDisney’s new CEO says his focus is on storytelling and creativity
-
Tennessee5 days agoTennessee Police Investigating Alleged Assault Involving ‘Reacher’ Star Alan Ritchson
-
Technology6 days agoYouTube job scam text: How to spot it fast
-
Texas1 week agoHow to buy Houston vs. Texas A&M 2026 March Madness tickets