The Brazilian presidency of the UN Climate Summit (COP30) yesterday unveiled a plan to mobilize 1.3 trillion dollars (€1.17 trillion) per year through 2035 to help developing countries tackle the climate crisis.
Under the title “COP30 Presidency: implementing the Baku to Belem roadmap toward 1.3 trillion dollars,” the document states that preventing the world from exceeding the 1.5°C warming limit, established in the Paris Agreement, “has ceased to be a risk and has become a planning premise.”
In the report, presented by COP30 president, Ambassador André Corrêa do Lago, on the eve of COP31, in Antalya, Turkey, it is warned that the current flow of resources is insufficient. If the trend continues, vulnerable nations will receive only about $461 billion per year (€413 billion), generating a financing gap of $840 billion (€753 billion).
At the end of Brazil’s term leading the UN negotiations, the text presented today is advisory in nature and aims to concretize the financial objective set last year during the summit in the Amazonian city of Belem.
To define the avenues for fundraising, Brazil convened renowned economists, such as Nobel Prize laureates 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 assume the largest share, expected to multiply by more than ninefold to reach $882 billion per year (€790 billion), through public risk-reduction mechanisms, such as government guarantees, insurance policies, and hedges against exchange-rate volatility.
On the other hand, public aid from wealthy countries and multilateral financial institutions would have to more than double, reaching $384 billion (€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 billion (€115 billion) additional per year.
To mitigate the failure to meet multilateral commitments, the outgoing presidency proposed the implementation of the “Climate Financing Action Compass,” a publicly accessible digital platform designed to monitor the destination, pace, and scope of transfers.
According to the document, the guidelines aim to fulfill what was agreed at COP29 in Azerbaijan and the consensus of the decision adopted in Belem, where the international community established the urgency of increasing resources to 1.3 trillion dollars per year (€1.17 trillion).
