COP30 presents plan to raise EUR 1.17 billion per year

A brazilian presidency of the UN climate summit (COP30) today presented a plan to mobilise 1.3 billion dollars (€1.17 billion) per year by 2035 for developing countries to face the climate crisis.

Under the title “COP30 Presidency: implementing Baku’s road map to Bethlehem to the 1.3 billion dollars”, the document states that preventing the world from exceeding the 1.5 billion limit °C of heating, established in the Paris Agreement, “it is no longer a risk and has become a planning premise”.

In the report, presented by the president of COP30, Ambassador André Corrêa do Lago, on the eve of the beginning of COP 31 in Antalia, Turkey, it is warned that the current flow of resources is insufficient. If the trend continues, vulnerable nations will receive only around USD 461 billion (EUR 413 billion) per year, generating a financing deficit of USD 840 billion (EUR 753 billion).

At the end of Brazil's mandate ahead of the UN negotiations, the text presented today is guiding and aims to achieve the financial objective established last year during the summit in the Amazon city of Belém.

To define the ways of raising funds, Brazil called on renowned economists, such as the Nobel Prize Esther Duflo, Nicholas Stern and Gabriel Zucman.

The strategy combines public funds from developed countries, private investment and new international taxes on large fortunes and fossil fuels, through six sources.

Private capital would be the largest volume, with more than nine to reach 882,000 million dollars per year (EUR 790 billion), through public risk reduction mechanisms such as state guarantees, insurance policies and hedges against exchange volatility.

On the other hand, public aid from rich countries and multilateral financial institutions would have to be more than doubled, reaching US$ 384 billion (EUR 344 billion) per year.

The plan also includes new taxes on multimillionaires, financial transactions, aviation and oil, with the aim of raising up to 129,000 million additional dollars (115 billion euros) per year.

To mitigate non-compliance with multilateral commitments, the outgoing presidency proposed the implementation of the “Climatic Funding Action Compass”, a public access digital platform to monitor the destination, pace and scope of transfers.

According to the document, the guidelines aim to comply with the agreed in the Azerbaijani COP29 and the consensus of the decision taken in Bethlehem, where the international community has set the urgency of increasing resources to 1.3 billion dollars a year (€1.17 billion).