Economics

The upcoming COP29 climate summit is grappling with the contentious issue of financing climate initiatives in developing countries. Fatih Birol, Executive Director of the International Energy Agency (IEA), highlighted that the share of clean energy investments in emerging economies has stagnated over the past decade. Discussions revolve around increasing funds to aid poorer nations in combating global warming and determining how these funds will be allocated. Developing nations argue they are being left behind despite bearing the brunt of climate change impacts. The UN estimates a multi-trillion dollar shortfall in funding for these countries to cope with climate disasters. Tensions are rising ahead of COP28 in Dubai, with environmentalists criticizing the meager $9.3 billion pledged to the Green Climate Fund. Barbados Prime Minister Mia Mottley proposed global taxes on oil, gas, and shipping industries to raise funds, stating "This has probably been the most progress we've seen in the last 12 months on finance. But we're not where we need to be yet." The World Bank aims to boost its climate financing role, with 45% going towards adaptation and mitigation by 2025. However, a core tension exists around the obligations of large emerging economies like China and India, classified as developing in 1992 but now major emitters. Resolving this impasse is crucial for ensuring vulnerable nations receive adequate support.