COP29 GOALS: Why climate finance is top priority

The COP29 climate summit starts today at Baku, Azerbaijan. ProClime's CEO, Kavin Kumar Kandaswamy speaks to The Financial Express on why the world isn’t able to agree on how to find the money to undo the damage done to the planet, what’s in store for India, and why this edition is focusing so much on climate finance.

Financing the climate action

This year, climate finance is the buzzword at the UN Climate Change Conference (COP) since mobilising support for the New Collective Quantified Goal (NCQG) on climate finance is a top priority. The NCQG will be a replacement for the $100 billion that the developed countries were supposed to annually contribute to the climate fund.

Baku, the host, also announced a new fund called the Climate Finance Action Fund (CFAF) in July, which aims to raise money from countries producing fossil fuels and give them to developing countries and their green projects.

Kavin Kumar Kandasamy, CEO of ProClime, a unified service provider in the climate space, says the fund could provide vital resources for developing countries like India. He says, “While the exact fundraising target remains uncertain, an initial goal of around $1 billion would be essential for launching impactful initiatives.”

The carbon credits market

Ahead of COP in November, an agreement was reached in pre-COP meetings about “crucial standards to operationalise a new UN crediting mechanism.” A supervisory body came up with recommendations on “facilitating international collaboration in reducing greenhouse gas emissions and combating climate change,” that will be reviewed at COP29.

In simple terms, carbon markets are trading systems where a company/ individual can buy/ sell carbon credits – those who work towards removing greenhouse gas emissions can sell their carbon credits; the others can buy them to compensate for polluting the environment. It’s expected that COP29 will address a standard protocol for engaging in carbon trading.

Kandasamy says, “Well-designed carbon markets can mobilise substantial private and public investment, particularly in developing countries, creating pathways for companies to take responsibility for their emissions while fostering innovation in low-carbon technologies.”

News Article Link: https://www.financialexpress.com/sustainability-2/cop29-goals-why-climate-finance-is-top-priority/3661437/lite/