{"id":24443,"date":"2024-11-14T11:04:29","date_gmt":"2024-11-14T16:04:29","guid":{"rendered":"https:\/\/blogs.edf.org\/climate411\/?p=24443"},"modified":"2025-12-02T15:20:41","modified_gmt":"2025-12-02T20:20:41","slug":"getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/climate411\/2024\/11\/14\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\/","title":{"rendered":"Getting Climate Finance Right at COP29: Key Issues to Address in Baku"},"content":{"rendered":"<p><span data-contrast=\"auto\">Negotiations at the United Nations climate talks in Azerbaijan, COP29, are now picking up. Global leaders are tasked with deciding on a new goal for how much money will be provided to developing countries to take climate action. The New Collective Quantified Goal (NCQG) on climate finance represents a critical opportunity to reshape how we support developing countries in their fight against climate change.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As negotiations continue and the negotiation text is revised, we need to see several core principles included in the NCQG to serve its purpose. EDF has reviewed some key issues for the NCQG to bring quality into climate finance, and these are some issues we must address in Baku:\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol>\n<li><b><span data-contrast=\"auto\"> Unlock Economic Opportunities, Don\u2019t Lock in Debt<\/span><\/b><\/li>\n<\/ol>\n<p><span data-contrast=\"auto\">First and foremost, the new finance goal must break away from traditional financing models that burden developing countries with additional debt, which further hampers their ability to take climate action. Market-rate loans and private finance at unfair market returns should not be counted as climate finance. As revealed in <\/span><a href=\"https:\/\/www.worldbank.org\/en\/news\/press-release\/2023\/12\/13\/developing-countries-paid-record-443-5-billion-on-public-debt-in-2022\"><span data-contrast=\"none\">recent studies<\/span><\/a><span data-contrast=\"auto\">, many developing countries are already struggling with debt distress, making it crucial that climate finance comes primarily through quality climate finance.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The NCQG must transform climate finance into an engine for economic opportunity rather than a source of debt burden. This means structuring climate finance to unlock new markets, create jobs, and build resilient economies while avoiding the debt trap that has historically hindered development. The focus should be on enabling countries to seize the economic opportunities of the green transition through grants, concessional finance, and strategic investment in capacity building.<\/span><\/p>\n<p><span data-ccp-props=\"{}\"> <a href=\"https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/\/ElVp8V4u5exi14bYngKJU-4TYuL2ccQ02C_SN5sj5uU.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-24407 aligncenter\" src=\"https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/\/ElVp8V4u5exi14bYngKJU-4TYuL2ccQ02C_SN5sj5uU-1024x618.png\" alt=\"\" width=\"540\" height=\"326\" srcset=\"https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/ElVp8V4u5exi14bYngKJU-4TYuL2ccQ02C_SN5sj5uU-1024x618.png 1024w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/ElVp8V4u5exi14bYngKJU-4TYuL2ccQ02C_SN5sj5uU-300x181.png 300w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/ElVp8V4u5exi14bYngKJU-4TYuL2ccQ02C_SN5sj5uU-768x464.png 768w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/ElVp8V4u5exi14bYngKJU-4TYuL2ccQ02C_SN5sj5uU.png 1274w\" sizes=\"auto, (max-width: 540px) 100vw, 540px\" \/><\/a><\/span><\/p>\n<ol start=\"2\">\n<li><b><span data-contrast=\"auto\"> Agree on What We&#8217;re Talking About: Define Climate Finance<\/span><\/b><\/li>\n<\/ol>\n<p><span data-contrast=\"auto\">Transparency is another cornerstone of the NCQG framework. We need clear, standardized definitions of what constitutes climate finance. Currently, the climate finance landscape is ambiguous, with some countries counting official development assistance (ODA) or non-climate-specific funding toward their climate commitments. The NCQG must establish precise criteria for what qualifies as climate finance, ensuring accountability and preventing the inflation of reported contributions.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol start=\"3\">\n<li><b><span data-contrast=\"auto\"> Cut the Red Tape<\/span><\/b><\/li>\n<\/ol>\n<p><span data-contrast=\"auto\">Access to finance remains a significant hurdle for many developing nations. The NCQG must mandate efficient, streamlined access channels that minimize bureaucratic barriers. Current systems often involve complex application processes and stringent requirements that can delay or prevent countries from accessing crucial funding. The new framework should prioritize swift, direct access while maintaining appropriate oversight.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol start=\"4\">\n<li><b><span data-contrast=\"auto\"> Remove the Roadblocks<\/span><\/b><\/li>\n<\/ol>\n<p><span data-contrast=\"auto\">A critical aspect often overlooked is the need to address &#8220;dis-enablers&#8221; \u2013 structural barriers that prevent effective climate finance deployment. High capital costs, excessive transaction fees, and unilateral measures like carbon border adjustments can significantly reduce the real value of climate finance reaching developing countries. For instance, some developing nations face interest rates two to three times higher than developed countries for renewable energy projects, making clean energy transitions unnecessarily expensive.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol start=\"5\">\n<li><b><span data-contrast=\"auto\"> Make Finance Predictable<\/span><\/b><\/li>\n<\/ol>\n<p><span data-contrast=\"auto\">The NCQG must ensure predictability in climate finance flows, so developing countries can plan long-term climate strategies with confidence that they will be supported. Currently, financing often arrives unpredictably or later than promised. By establishing clear timelines and reliable funding mechanisms, the NCQG can enable better planning and more effective implementation of climate projects.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol start=\"6\">\n<li><b><span data-contrast=\"auto\"> Public-Private Finance: Getting the Balance Right<\/span><\/b><\/li>\n<\/ol>\n<p><span data-contrast=\"auto\">Public finance must remain the cornerstone of the NCQG framework, while strategically leveraging private sector involvement. Currently, multilateral development banks mobilize only about $0.60 in private capital for every $1 of financing &#8211; far below what&#8217;s needed. While private investment is crucial for scaling up climate solutions, particularly in renewable energy and green technology, it cannot replace public finance. This is especially true for adaptation projects that protect vulnerable communities. Public funding through grants and concessional instruments can de-risk investments and catalyze private capital, while ensuring developing nations maintain sovereignty over their climate priorities.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Make COP29 outcomes matter if we want 2025 to succeed<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Looking ahead, the success of the NCQG will depend on how well it addresses these fundamental issues. Simply setting a higher numerical target without addressing quality, access, and structural barriers would perpetuate existing challenges in climate finance. We need a comprehensive approach that combines ambitious funding goals with practical mechanisms for effective delivery.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As negotiations continue, world leaders should remain focused on solutions to make our climate finance system more equitable, efficient, and impactful. By ensuring unconditional access, emphasizing grants and concessional funding, maintaining transparency, and addressing structural barriers, we can build a framework that genuinely serves the needs of developing nations in their fight against climate change.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For more, read EDF\u2019s latest report on climate finance quality: <\/span><span data-contrast=\"none\">\u201c<\/span><a href=\"https:\/\/www.edf.org\/Z6EY\"><span data-contrast=\"none\">Quality Matters: Strengthening Climate Finance to Drive Climate Action<\/span><\/a><span data-contrast=\"none\">\u201d.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/\/FInance-report-graphics-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-24409 aligncenter\" src=\"https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/\/FInance-report-graphics-1-1024x1024.png\" alt=\"\" width=\"540\" height=\"540\" srcset=\"https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/FInance-report-graphics-1-1024x1024.png 1024w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/FInance-report-graphics-1-300x300.png 300w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/FInance-report-graphics-1-50x50.png 50w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/FInance-report-graphics-1-768x768.png 768w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/FInance-report-graphics-1-150x150.png 150w, https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/FInance-report-graphics-1.png 1080w\" sizes=\"auto, (max-width: 540px) 100vw, 540px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Negotiations at the United Nations climate talks in Azerbaijan, COP29, are now picking up. Global leaders are tasked with deciding on a new goal for how much money will be provided to developing countries to take climate action. The New Collective Quantified Goal (NCQG) on climate finance represents a critical opportunity to reshape how we &#8230;<\/p>\n","protected":false},"author":153063,"featured_media":24462,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20],"tags":[],"coauthors":[108008],"class_list":["post-24443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Getting Climate Finance Right at COP29: Key Issues to Address in Baku - Climate 411<\/title>\n<meta name=\"description\" content=\"Negotiations at the United Nations climate talks in Azerbaijan, COP29, are now picking up. 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Global leaders are tasked with deciding on a new goal for how much money will be provided to developing countries to take climate action. The New Collective Quantified Goal (NCQG) on climate finance represents a critical opportunity to reshape how we support developing countries in their fight against climate change.\u00a0\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blogs.edf.org\/climate411\/2024\/11\/14\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\/\" \/>\n<meta property=\"og:site_name\" content=\"Climate 411\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-14T16:04:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-02T20:20:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blogs.edf.org\/climate411\/wp-content\/blogs.dir\/7\/files\/\/2-4.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Juan Pablo Hoffmaister\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@jhoffmaister\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Juan Pablo Hoffmaister\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/2024\\\/11\\\/14\\\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/2024\\\/11\\\/14\\\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\\\/\"},\"author\":{\"name\":\"Juan Pablo Hoffmaister\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/#\\\/schema\\\/person\\\/5ef3824a5e4c8f4c284361179dc397e3\"},\"headline\":\"Getting Climate Finance Right at COP29: Key Issues to Address in Baku\",\"datePublished\":\"2024-11-14T16:04:29+00:00\",\"dateModified\":\"2025-12-02T20:20:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/2024\\\/11\\\/14\\\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\\\/\"},\"wordCount\":771,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/2024\\\/11\\\/14\\\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/wp-content\\\/blogs.dir\\\/7\\\/files\\\/\\\/2-4.jpg\",\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/2024\\\/11\\\/14\\\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/2024\\\/11\\\/14\\\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\\\/\",\"url\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/2024\\\/11\\\/14\\\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\\\/\",\"name\":\"Getting Climate Finance Right at COP29: Key Issues to Address in Baku - Climate 411\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/2024\\\/11\\\/14\\\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/2024\\\/11\\\/14\\\/getting-climate-finance-right-at-cop29-key-issues-to-address-in-baku\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/wp-content\\\/blogs.dir\\\/7\\\/files\\\/\\\/2-4.jpg\",\"datePublished\":\"2024-11-14T16:04:29+00:00\",\"dateModified\":\"2025-12-02T20:20:41+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/climate411\\\/#\\\/schema\\\/person\\\/5ef3824a5e4c8f4c284361179dc397e3\"},\"description\":\"Negotiations at the United Nations climate talks in Azerbaijan, COP29, are now picking up. 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