COP29 climate finance in numbers: How much is needed and where is it coming from?

As world leaders continue talks at COP29 in Baku, negotiators agree that substantial funding is needed to help lower-income countries adapt to climate change.

Divisions remain, however, over who should bear this financial responsibility. And the numbers for this new climate finance target are enormous.

Tackling the intensifying impacts of climate change requires trillions of dollars, a cost far beyond the reach of poorer nations, according to numerous experts and reports.

The new financing goal is intended to replace the annual $100 billion (€95 billion) target established in 2009, which was barely met in 2022, two years behind schedule.

According to a Climate Policy Initiative report, global climate finance approached $1.3 trillion (€1.2 trillion) a year on average in 2021/2022 compared to $653 billion (€619 billion) in 2019/2020.

Other organisationsput the number needed at $1 trillion (€948 billion) a year.

Some expert groups say the amount of climate finance needed is expected to rise to $9 trillion (€8.5 trillion) by 2030.

To meet these huge monetary requirements, governments worldwide are exploring various options, including wealth taxes, levies on shipping and addressing debt.

Supported by taxpayer funding, large international banks have become the biggest and fastest-growing providers of climate finance for developing nations.

These banks were a key reason why, in 2022, the world met the goal countries set in 2009 to supply developing nations with $100 billion annually to address climate change.

However, international development banks have been urged to act more swiftly and effectively.

Research group Climate Policy Initiative estimates the world needs about five times the current annual amount of climate financing to