The COP29 Presidency of Azerbaijan has unveiled the Baku Finance Goal (BFG), a fresh commitment aimed at directing $1.3 trillion in climate financing annually to developing countries. Achieving this key objective for the UN Climate Summit marks a substantial increase from the previous climate finance target of $100 billion and is set to pave the way for a new wave of global investments, Azernews reports.
The Baku Finance Goal sets a key objective for developed nations to lead the mobilization of at least $300 billion annually for developing countries by 2035. This marks a $50 billion increase over the previous draft and results from 48 hours of intensive negotiations by the COP29 Presidency. The initiative specifically focuses on assisting the least developed countries and small island developing states, emphasizing accessibility and transparency.
In addition, COP29 has brought an end to the decade-long delay in finalizing Article 6 negotiations regarding high-integrity carbon markets under the UN framework. Financial flows from these compliant carbon markets could potentially reach $1 trillion annually by 2050, with the capacity to lower the costs of executing national climate plans by $250 billion each year. Together, the Baku Finance Goal and Article 6 will significantly reshape the global climate finance landscape by steering investment toward developing nations.
The Baku Finance Goal is a central element of a broader package of agreements aimed at making progress across all climate-related areas. This also includes establishing the Fund for Loss and Damage, which is set to be operational and ready to disburse funds by 2025.
These achievements come after months of rigorous diplomacy by the Azerbaijani Presidency and address some of the most complex and contentious issues in multilateral climate efforts. They represent a crucial step toward creating a pathway to maintaining global temperature increase within the 1.5°C limit.
"When the world came to Baku, people doubted that Azerbaijan could deliver. They doubted that everyone could agree. They were wrong on both counts. With this breakthrough, the Baku Finance Goal will turn billions into trillions over the next decade. We have secured a trebling of the core climate finance target for developing countries each year," said COP29 President Mukhtar Babayev.
"The Baku Finance Goal represents the best possible deal we could reach, and we have pushed the donor countries as far as possible. We have forever changed the global financial architecture and taken a significant step towards delivering the means to deliver a pathway to 1.5C. The years ahead will not be easy. The science shows that the challenges will only grow. Our ability to work together will be tested. The Baku Breakthrough will help us weather the coming storms."
