Finance

What the COP29 Climate Finance Deal Means for the World

Published

1 year ago

November 25, 2024

What the COP29 Climate Finance Deal Means for the World

After more than two weeks of grueling deliberations at this year’s U.N. climate summit in Baku, Azerbaijan—known as COP29—the world’s wealthiest nations agreed to triple their climate finance commitments to developing nations.

For the world’s poorest countries, which are responsible for a minuscule share of global greenhouse gas emissions, securing the necessary financing to cope with a changing climate and shift away from fossil fuels is essential. But how much money they should receive and who should pay are contentious questions that sparked a bitter fight in Baku.

Wealthy nations ultimately agreed to commit at least $300 billion in climate finance annually by 2035. That amount eclipses their existing pledge of $100 billion per year, which they had already struggled to meet. Yet it is nowhere near the $1.3 trillion target that developing countries had been pushing for—and even that value likely falls short of their total financial need in confronting climate change.

The resulting agreement drew little fanfare—and in some cases outright dismissal—from developing nations and climate experts, although many said it moved the needle in the right direction.

“The poorest and most vulnerable nations are rightfully disappointed that wealthier countries didn’t put more money on the table when billions of people’s lives are at stake,” said Ani Dasgupta, the president of the World Resources Institute (WRI), a global research nonprofit, but “this deal gets us off the starting block.”

While the negotiation over money was always expected to make this year’s COP difficult, the past two weeks sparked chaotic and often heated debates, heightening fears that this summit could be the first since 2009 to fail to reach an agreement.

In addition to wealthy nations’ $300 billion pledge, the final deal includes vague language that calls on “all public and private sources” to work together to secure $1.3 trillion in climate financing by 2035. But most of that money, if it comes at all, will likely come from private sources—not the kind of public finance or grants that are preferred by developing countries, many of which are worried about taking on more debt.

U.N. Secretary-General António Guterres expressed disappointment in the agreement but said it laid the groundwork for more robust climate action going forward. “I had hoped for a more ambitious outcome—on both finance & mitigation—to meet the scale of the great challenge we face, but the agreement reached provides a base on which to build,” he wrote in a post on X.

Few developing countries celebrated the outcome. Frustrations continued to flare after COP29 President Mukhtar Babayev announced the deal, with the Nigerian delegation’s representative slamming the final text as a “joke” and “an insult to what the [U.N. Framework Convention on Climate Change] says.” Anger was also palpable from the Bolivian negotiator, who said the agreement “enshrines climate injustice” and “consolidates an unfair system.”

Some of the most scathing remarks came from Indian representative Chandni Raina, who railed against the agreement’s “paltry sum” and what she characterized as a “stage-managed” process.

“India opposes the adoption of this document,” she said, which she described as “nothing more than an optical illusion.” “We seek a much higher ambition from the developed countries,” she added.

Beyond the finance targets, one of the most contentious issues during the negotiations was what responsibility major emitters that still qualify as developing countries—such as China and Saudi Arabia—should have to funnel funds to poorer, lower-emitting nations.

China, which came under pressure from the United States, stood by its long-held stance that only developed countries should be obligated to contribute finance. However, the Baku deal includes an option for developing countries to contribute money voluntarily. That was seen as a compromise because it maintains the division between developed and developing countries while also opening the door to new contributions from the latter.

China has provided substantial sums of climate finance to poorer countries in recent years on its own terms, outside the auspices of the United Nations. Recent studies estimate that China’s climate finance flows have reached some $4 billion a year over the last decade, roughly 5 percent of the developed country total, although much of it is in loans, not grants.

China, while still far poorer than Western nations on a per capita basis, exceeded the European Union to become the second-highest cumulative emitter of carbon emissions last year, so it is increasingly under pressure to shoulder more of the burden of climate change. Shuang Liu, WRI’s China finance director, said Beijing sent positive signals about maintaining its commitment to the global energy transition at this year’s COP. “China does not see itself as part of the $300 billion” sum that wealthy nations pledged. “But,” she added, “China is willing to [provide] support with climate-related finance to other countries.”

While China came under pressure from the United States, U.S. negotiators didn’t have much ground to stand on at this year’s COP. The talks occurred under the shadow of the reelection of former U.S. President Donald Trump, who has long dismissed climate change as a hoax and whose team has signaled that he will again yank the United States out of the Paris climate accord. During his first term, Trump also cut off U.S. funding for the Green Climate Fund, a U.N. program that serves as one of the main climate finance channels.

The United States is “the world’s largest historical emitter and the second-largest emitter after China now,” said Alice Hill, who served as a special assistant to U.S. President Barack Obama and senior director for resilience policy on the National Security Council. “Its position matters as to how much climate change occurs going forward.”

COP29 offered a glimpse into what international climate diplomacy could look like in the years to come, in a world where Washington has again withdrawn from global climate change efforts.

“Despite some blockers intent on disrupting the process, this deal shows that the majority of countries remain committed to multilateralism and tackling the climate crisis,” said Cosima Cassel, a program lead at E3G, a research organization. “We have seen strong leadership from countries such as the U.K. and Brazil, as well as Colombia and Kenya, to push this deal to fruition.”

The world, which has already warmed around 1.3 degrees Celsius above preindustrial levels, is currently on track to heat up by 3.1 degrees Celsius above preindustrial levels by the end of the century, according to the United Nations. That’s more than double the key 1.5-degree target that was set under the 2015 Paris agreement, and scientists stress that every additional increment of warming raises the risks of the severe weather increasingly sweeping the world.

Despite its frustrating outcome, COP29 has, importantly, shaped public perceptions of wealthier nations’ climate finance responsibilities, experts said.

“COP29 has helped mainstream the simple fact that rich countries have a historic obligation to help poorer countries cut emissions and cope with extreme weather, and that doing so will benefit every country on Earth,” said Michael Wilkins, the executive director of the Centre for Climate Finance & Investment at Imperial College London.

Finance

Household savings, income and finances in Spain: how did they fare in 2025 and what can we expect for 2026?

Published

7 hours ago

May 14, 2026

Press Room

Household savings, income and finances in Spain: how did they fare in 2025 and what can we expect for 2026?

In 2025, GDI grew above the rate of average annual inflation (2.7%) and the growth in the number of households (1.3% according to the LFS), which allowed for a recovery in purchasing power. In this context, real household income has grown by 4.5% since before the pandemic, highlighting that households have continued to gain purchasing power in real terms.

The strong financial position of households is reflected not only in the high savings rate but also in their financial accounts. In this regard, households’ financial wealth continued to increase in 2025: their financial assets amounted to 3.4 trillion euros at the end of the year, versus 3.1 trillion at the end of 2024. This increase of 292 billion euros is broken down into a net acquisition of financial assets amounting to 95 billion, higher than the 21.5-billion average in the period 2015-2019, when interest rates were very low, and a revaluation effect of 194 billion. When breaking down the net acquisition of assets, we note that households invested 42 billion euros in equities and investment funds, just under 9.6 billion less than in deposits, while they disposed of debt securities worth 6 billion following the fall in interest rates.

On the other hand, households continued to deleverage in 2025, and by the end of the year their financial liabilities stood at 46.9% of GDP, compared to 47.8% in 2024, the lowest level since the end of 1998. This decline reflects the fact that, in 2025, households took advantage of the interest rate drop to prudently incur debt: net new borrowing amounted to 35 billion euros, representing an increase of 3.8%, which is lower than the nominal GDP growth of 5.8% and the GDI growth of 5.3%.

As a result of the increase in financial assets and the decrease in liabilities as a percentage of GDP, the net financial wealth of households recorded a notable increase of 7.3 points compared to 2024, reaching 156.8% of GDP.

Finance

Fresno Mayor Jerry Dyer touts ‘strong financial outlook’ in city’s budget proposal

Published

19 hours ago

May 13, 2026

Press Room

Fresno Mayor Jerry Dyer touts ‘strong financial outlook’ in city’s budget proposal

FRESNO, Calif. (KFSN) — Mayor Jerry Dyer has unveiled his 2026- 2027 budget proposal at Fresno’s City Hall.

The overall budget total is $2.55 billion, with a majority of the funding going to public works, utilities, police and FAX.

The mayor also highlighted several investments, including a 10-year tree trimming cycle, the Homeless Assistance Response Team and an America 250 celebration.

Dyer says that despite some challenging circumstances, the City of Fresno’s long-term financial condition remains healthy.

“We’re pleased to say that based on increasing revenues and sound financial management, as well as a very healthy reserve, the city of Fresno has a strong financial outlook,” he said.

Dyer’s office says the budget is a comprehensive financial plan that reflects the city’s ongoing commitment to the “One Fresno” vision.

Finance

Nature Is Water Infrastructure. It’s Time To Finance It That Way

Published

1 day ago

May 13, 2026

Press Room

Nature Is Water Infrastructure. It’s Time To Finance It That Way

Cape Town is experiencing severe drought the main dam at Theewaterskloof is only at 10% capacity, on April 03, 2018 in Cape Town, South Africa. Diminishing water supplies may lead to the taps being turned off for the four millions inhabitants of Cape Town on April 12 2018, known locally as Day Zero. Water will be restricted from 87 litres per day to 50 litres as temperatures reach 28 degrees later this week. Politicians are blaming each other and residents for the deepening crisis.

John Snelling

Back in 2018 Cape Town, South Africa came dangerously close to running out of water. A severe, multi-year drought, combined with population growth and rising demand, pushed the city toward what officials called “Day Zero” – the moment when municipal water supplies would fall so low that household taps would be shut off and residents would be forced to collect daily water rations from designated distribution sites.

The city responded with extraordinary urgency. Emergency water stations were prepared. Public campaigns urged residents to reduce water consumption to just 13 gallons per day (the amount used in a single 6-minute shower). Monitoring systems tracked household water use. The filling of swimming pools and the washing of cars were banned.

Cape Town is experiencing severe drought many public buildings and Shopping Malls have cut water supplies to reduce water usage, on April 03, 2018 in Cape Town, South Africa.

John Snelling

These efforts helped Cape Town narrowly avoid a catastrophe. But the warning was unmistakable.

Water security is not only an environmental issue. It’s an economic issue. It’s a public health issue. It’s a food security issue. And for communities around the world, it is becoming a basic test of climate resilience.

In Cape Town, the crisis was driven by a combination of pressures. The city depends heavily on reservoirs supplied by six major dams. By 2018 these reservoirs had fallen below 20% capacity after years of drought. Aging infrastructure added strain. So did the spread of invasive plants, which consumed enormous amounts of water before it could reach the municipal system.

This last point matters. When we think about water infrastructure, we usually think about pipes, reservoirs, dams, pumps, and treatment plants. Those systems are essential. But they are only part of the story. The landscapes that capture, filter, store, and release water are vital infrastructure, too.

The good news is that we know how to better prevent and prepare for these risks moving forward. The answer? Investing in common-sense, nature-based solutions that restore balance to the region’s ecosystem. These are not abstract environmental ideals. They are practical investments with measurable benefits. The hard part has always been paying for them.

Nature-based solutions remain dramatically underfunded. This is a central challenge to global conservation efforts today. Indeed, it’s not that we lack solutions. We lack financial systems capable of delivering those solutions at the speed and scale required.

But that is beginning to change.

Cape Town residents queue to refill water bottles at Newlands Brewery Spring Water Point on January 30, 2018 in Cape Town, South Africa. Diminishing water supplies may lead to the taps being turned off for the four millions inhabitants of Cape Town on April 16 2018, known locally as Day Zero. Water will be restricted from 87 litres per day to 50 litres as temperatures reach 28 degrees later this week.(Photo by Morgana Wingard/Getty Images)

Getty Images

A New Model for Financing Nature

The Cape Water Performance-Based Bond, announced last month, is more than just a creative financing tool. It is a five-year, outcomes‑linked transaction designed to mobilize capital markets at scale in support of nature‑based solutions, bringing together public institutions, philanthropic support, conservation expertise, and private capital to deliver measurable environmental results.

The bond, listed on the Johannesburg Stock exchange valued at R2.5 billion (USD $150 million) brought together FirstRand Bank as issuer, Rand Merchant Bank as arranger and structurer, and a coalition of local and international investors and philanthropic funders. As part of the structuring, The Nature Conservancy (TNCs) South Africa Program receives R150 million (USD $8.8 million) for implementation. And its most important feature is also its most innovative: investor returns are linked directly to independently verified ecological outcomes.

That is a major step forward.

For years, sustainable finance has often relied on “use-of-proceeds” models. Capital is raised and directed toward projects expected to produce environmental benefits. Yes, those models have value. But the Cape Water bond goes further. Investors are not simply financing a project that promises environmental benefits. Their returns are tied to whether those benefits are actually delivered. In this case, the outcome is clear: restoring critical water source areas in South Africa’s Western Cape by removing invasive alien plants that reduce water yield, damage biodiversity, and increase wildfire risk.

Over the next few years, the restoration work supported through the Greater Cape Town Water Fund will focus on removal of invasive species such as Pine, Eucalyptus, and Australian acacias, which consume far more water than the Cape’s native vegetation. At the height of concern, invasive plants were estimated to consume nearly 150 million liters of water per day in the Greater Cape Town region alone. Put more plainly, that was approximately one-fifth of the entire city’s water usage during the crisis.

The work builds on efforts already underway via the Greater Cape Town Water Fund, which was formed by TNC and partners in response to Cape Town’s prolonged water crisis. Already these efforts have cleared tens of thousands of hectares of invasive, water hogging plants. The fund prioritizes science-driven, nature-based solutions that restore the watersheds feeding the city’s water supply. Here again, the outcomes are not assumed. They are measured. And they are verified. That kind of accountability matters. It builds trust. It strengthens rigor. And by systematically evaluating returns, it helps move conservation finance closer to mainstream capital markets.

A team from Likona Lethe Services – over 40 men and women strong – camp up on the mountain while they spend their days clearing the area of alien vegetation, in this case primarily pine trees. The Greater Cape Town Water Fund stimulates funding and implementation of catchment restoration efforts and, in the process, creates jobs and momentum to protect global biodiversity and build more resilient communities in the face of climate change. The Greater Cape Town Water Fund – a project of The Nature Conservancy – is cutting down thirsty non-indigenous trees – mostly pines – over the Cape Mountains to save water and restore indigenous fynbos. CREDIT: Samantha Reinders for The Washington Post via Getty Images.

The Washington Post via Getty Images

The Warning of “Day Zero”

The Western Cape is a powerful place to prove this model.

Cape Town’s experience during the 2017-2018 drought showed the world what water insecurity looks like in real time. It also changed how many people think about infrastructure.

In the Western Cape, invasive alien plants have disrupted the natural function of key catchments. They consume large amounts of water, crowd out native vegetation, and weaken the ecological integrity of the region’s water source areas. Removing them is not just landscape restoration. It is water system restoration.

Analysis from the Greater Cape Town Water Fund indicates that clearing invasive plants across priority sub-watersheds could help return roughly 55 billion liters of water each year to the Western Cape Water Supply System – one-third of Cape Town’s annual municipal water needs.

That’s not a marginal environmental benefit. It represents one of the most cost‑effective nature‑based strategies available to strengthen long‑term water security, while also delivering biodiversity, wildfire‑risk, and economic benefits.

A Blueprint for Global Conservation Finance

The Cape Water bond helps make that case in a language markets understand.

Commercial finance provides scale. Philanthropic and outcomes-based support help absorb risk. Conservation organizations like TNC apply scientific and technical expertise to implement on-ground restoration, while independent verification ensures outcomes and integrity. Public-interest institutions keep the structure aligned with long-term community and ecosystem benefit.

Most of the invasive pine trees surrounding the immediate circumference of the Elandskloof Dam have already been cleared by the Greater Cape Town Water Fund teams. This dam is a sub-catchment for the Theewaterskloof Dam – the largest dam in the Western Cape Water Supply System with a capacity of 480 million cubic metres, about 41% of the water storage capacity available to Cape Town. TAs of October 2023, GCTWF teams have cleared more than 46,000 hectares of invasive trees. This recovers about 15.2 billion liters of water per year (42 million liters per day) back into the water catchment and keeps the rivers flowing. CREDIT: Samantha Reinders for The Washington Post via Getty Images.

The Washington Post via Getty Images

Martin Potgieter of Rand Merchant Bank explained, “This is a R2.5 billion market signal that natural capital has entered mainstream finance — combining financial innovation with scientific rigor.”

That’s using different types of capital to unlock outcomes that no single funding source could achieve alone. It’s exactly what blended finance is supposed to do. And the model has global relevance.

Around the world, communities are searching for ways to close the gap between conservation need and available funding. Sovereign nature bonds and debt conversions helped unlock capital for ocean conservation in places like the Seychelles, Belize, Barbados, and Gabon. The Cape Water bond builds on that same spirit of innovation but applies it to watershed restoration through a performance-based capital markets instrument.

Nature-based solutions work. And the Cape Water Performance-Based Bond shows what is possible. Conservation can be tied to performance. Public institutions and private capital can work together. And ecological restoration, when structured well, can attract the kind of financial support needed to move from isolated pilot projects to real scale.

Nature has always been one of our most valuable assets. It is time our financial systems treated it that way.

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Author’s Note:

As a physician, I have spent much of my career studying human health. Increasingly, I have come to believe that understanding, and protecting, the health of the planet is inseparable from protecting our own.