COP30 Presents Plan to Mobilize $1.17 Trillion Annually to Combat Climate Crisis

The Brazilian presidency of the COP30 climate summit has presented a plan to mobilize $1.3 billion dollars, or $1.17 trillion euros, annually by 2035. This aims to support developing countries in their efforts to combat the climate crisis. The plan, titled "COP30 Presidency: Implementing the Baku to Belém Roadmap to $1.3 Trillion Dollars," was presented by COP30 President Ambassador André Corrêa do Lago.

The plan emphasizes that preventing the world from exceeding the 1.5°C warming limit set by the Paris Agreement is no longer a risk but a planning premise. The current flow of resources is insufficient, with vulnerable nations expected to receive only around $461 billion dollars, or $413 billion euros, per year. This creates a financing gap of $840 billion dollars, or $753 billion euros. The report was released on the eve of COP31 in Antalya, Turkey.

To address this gap, the plan combines public funds from developed countries, private investment, and new international taxes on large fortunes and fossil fuels. Six sources are identified for fundraising. Private capital would account for the largest share, needing to increase by over nine times to reach $882 billion dollars, or $790 billion euros, annually. This would be achieved through public risk reduction mechanisms like state guarantees and insurance policies.

Public assistance from wealthy countries and multilateral financial institutions would need to more than double, reaching $384 billion dollars, or $344 billion euros, per year. The plan also includes new taxes on multimillionaires, financial transactions, aviation, and oil. These measures aim to raise up to $129 billion dollars, or $115 billion euros, annually. Economists like Nobel Prize winner Esther Duflo, Nicholas Stern, and Gabriel Zucman contributed to defining these funding avenues.

To mitigate non-compliance with multilateral commitments, the outgoing presidency proposed the "Climate Financing Action Compass." This digital platform would allow public access to monitor the destination, pace, and scope of transfers. The guidelines aim to fulfill the agreements made at COP29 in Azerbaijan and the consensus adopted in Belém. There, the international community recognized the urgency of increasing resources to $1.3 trillion dollars, or $1.17 trillion euros, per year.

The plan has a guiding character and seeks to achieve the financial objective established last year during the summit in Belém, Brazil. The implementation of these measures would help developing countries better cope with climate change impacts. The financing gap is a significant challenge, and finding solutions will be crucial for the success of future climate summits.

The Brazilian presidency's proposal includes a combination of solutions to bridge the financing gap. The plan's success will depend on the cooperation of developed countries, private investors, and international institutions. If implemented, it could provide significant support to vulnerable nations in their efforts to address the climate crisis.

Key points

• The plan aims to mobilize $1.17 trillion euros annually by 2035 to support developing countries in addressing the climate crisis.
• The current flow of resources is insufficient, with a financing gap of $840 billion dollars, or $753 billion euros.
• The plan combines public funds, private investment, and new international taxes to bridge the financing gap.