As discussions on establishing a new climate finance goal continue, a recent report from the Independent High-Level Expert Group on Climate Finance has set forth a target to mobilize $1 trillion per year by 2030 in external financing to support emerging market and developing countries (EMDCs), excluding China, in meeting the Paris Agreement goals. This annual requirement is projected to increase to approximately $1.3 trillion by 2035 to accommodate the escalating need for investments in climate resilience and sustainable development.
The Group of 77 (G77)—a coalition of developing nations—has strongly backed a climate finance target of $1.3 trillion, a proposal originally led by the African Group. With broad support across the global South, the $1.3 trillion target marks a significant consensus in climate finance negotiations. This figure represents a central benchmark between earlier calls, which ranged from $1 trillion to $1.5 trillion annually.
The report stresses the urgency of setting and meeting this finance target, warning that delays will lead to higher costs over time. The need for investments in climate adaptation and loss-and-damage response is only expected to grow, making immediate action critical to minimize long-term expenses.
To reach the $1–1.3 trillion goal, the report presents several key recommendations:
– Tripling the Annual Climate Finance Commitment: Originally set at $100 billion annually in 2009 and reaffirmed in 2015, the climate finance pledge requires a substantial increase to meet the rising demands of climate adaptation and resilience.
– Enhancing Multilateral Development Bank (MDB) Contributions: Increased financial support from MDBs is highlighted as crucial for supporting large-scale climate initiatives in developing regions.
– Expanding Private Sector Investments: The report calls for a dramatic increase in private sector involvement to bridge the funding gap, recognizing the need for private capital to complement public climate financing efforts.
– South-South Cooperation: Engaging financially capable developing countries to contribute to climate goals reinforces the report’s vision of enhanced cooperation among developing nations to address shared climate challenges.
The report concludes by underlining that the climate finance target is not merely an environmental priority, but an economic one. Effective mobilization of resources will not only help stabilize global ecosystems but also foster sustainable economic growth across vulnerable regions. The urgency for a firm commitment to this financial goal is clear, with the report advocating for swift action to prevent mounting costs and economic disruption in the years to come.