Azerbaijan COP29 host intends to launch venture with contribution from state company
Azerbaijan, hosting the U.N. COP29 climate summit, announced a new $1 billion climate fund to support developing countries’ climate targets. The fund, based in Baku, seeks contributions from 10 fossil-fuel-producing nations and oil companies. Initially proposing a levy on fossil-fuel production, Azerbaijan shifted strategies after resistance.
COP29 President-Designate Mukhtar Babayev called for resource-rich countries to lead climate efforts, emphasizing finance as a key focus at the November summit. Azerbaijan plans to make an initial contribution and allocate 20% of investment revenues to a Rapid Response Funding Facility for climate disasters.
A working group will develop donor contribution formulas and access protocols for developing nations. New national climate plans must align with the Paris Agreement’s 1.5°C goal, although funding for some fossil fuel projects remains possible. Last year’s summit urged a transition away from fossil fuels to achieve net-zero emissions by 2050.
The UN’s climate chief Simon Stiell stated that success at COP29 hinges on progress around boosting climate finance.
“Progress in Baku isn’t just about green new numbers. It’s about improving climate finance delivery so that it meets developing countries needs now and in the future,” he said.
Source: Reuters
