From Billions to Trillions at COP29: The Role of Climate Finance

As the climate crisis escalates, the demand for transformative climate finance has become more urgent than ever. At the recent G20 summit in Rio and COP29 negotiations in Baku, leaders from around the globe emphasised the need to scale up funding from billions to trillions. This financial commitment is critical for addressing loss and damage, accelerating clean energy transitions, and advancing sustainable development. Yet, challenges remain, and progress depends on collective action across nations, industries, and sectors.

Here’s why scaling climate finance is imperative—and how it can unlock solutions to the world’s most pressing climate challenges.

Scaling Climate Finance: The G20 Commitment and COP29 Context

The G20’s Call for Action

The G20’s message from Rio sent a strong signal to COP29 negotiators: the need to substantially scale climate finance is urgent and non-negotiable. While the communiqué stopped short of explicitly calling for a transition away from fossil fuels, it recognized the importance of global financial reform to fund climate action.

UN Climate Chief Simon Stiell underscored this urgency, calling for a “successful new finance goal” to be in every country’s clear interest. With debt crises, inflation, and spiraling climate impacts disrupting economies, he warned against the dangers of “you-first-ism” in negotiations. Collective responsibility, he argued, is the only path forward.

The Stakes at COP29

With the clock ticking on the Azerbaijan-hosted climate summit, the stakes for achieving new funding agreements have never been higher. As UN Secretary-General António Guterres stated, “Failure in Baku is not an option.” A deadlock on financial commitments would risk undermining the ambition of future climate action, particularly at COP30 in Brazil.

Addressing the Challenges of Climate Finance

A Global Debt and Funding Crisis

Many developing nations, already bearing the brunt of climate impacts, face mounting debt that hinders their ability to implement climate solutions. The lack of clear financial commitments from developed nations exacerbates this divide, leaving vulnerable countries with limited resources to address rising losses and damages.

Harjeet Singh, a climate activist, expressed disappointment at the lack of specificity in financial pledges. “Developed nations remain unmoved, failing to quantify the trillions needed or to ensure these funds are provided as grants—essential for achieving climate justice,” he said. Without equitable and transparent financing, the pathway to climate resilience becomes increasingly narrow.

Unlocking Agrifood Systems as Climate Solutions

The Role of Agrifood Systems

Agriculture is both a contributor to and a solution for climate change. While agrifood systems account for significant emissions, they also hold tremendous potential for climate adaptation and mitigation. According to the FAO, 94% of countries identify agrifood systems as a priority for adaptation, and 91% highlight them for mitigation in their national climate plans.

The ability to transform agrifood systems into sustainable, resilient models is key to addressing broader challenges such as biodiversity loss, water scarcity, and food insecurity. Yet, as FAO Assistant Director-General Viorel Gutu pointed out, “Current financing and investment are not sufficient to affect the transformation we need.”

Empowering Women and Vulnerable Groups

Sustainable agriculture efforts must prioritise equity, particularly for women and Indigenous communities. Women, who are less likely to own land or access credit, play a vital role in food production. UN Women’s Jemimah Njuki stressed, “Without women, we will not be able to feed the world.” Investing in women-led farms and supporting Indigenous practices are critical steps toward inclusive climate action.

Water Challenges: A Climate and Security Issue

Water Under Threat

Water-related climate impacts are intensifying, from shrinking glaciers to rising sea levels, threatening populations and food security worldwide. In regions like Kyrgyzstan and Tajikistan, rapidly disappearing glaciers jeopardise long-term water supplies, while elsewhere, floods and droughts displace communities and undermine agriculture.

International Cooperation on Water Resources

With 153 countries sharing water bodies, effective cross-border collaboration is essential. Sonja Koppel, Secretary of the UN Water Convention, emphasised that water can either exacerbate conflict or serve as a tool for peace. Successful examples, like cooperation among Central Asian nations, demonstrate the potential for shared water management to foster stability and resilience.

The Road Ahead: Linking COP29 to COP30

The outcomes of COP29 will shape the global climate agenda leading into COP30, set to be held in Brazil’s eastern Amazon region. Protecting the Amazon rainforest, one of the planet’s largest carbon sinks, will be central to these discussions. With deforestation and biodiversity loss accelerating, robust financial commitments are essential for preserving the Amazon’s ecological and climate-stabilising functions.

Bridging the Climate Finance Gap

From Billions to Trillions: A Collective Effort

The transition from billions to trillions in climate finance requires a multi-faceted approach:

• Developed Nations’ Responsibility: Wealthier nations must honour their commitments, providing grants instead of loans to vulnerable countries.
• Private Sector Engagement: Businesses and investors need to step up, leveraging innovative financing mechanisms like green bonds and blended finance.
• Focus on Equity: Ensure that climate finance reaches those who need it most, empowering women, Indigenous communities, and other vulnerable groups.

The Role of Businesses

Private sector involvement is critical to bridging the climate finance gap. By investing in sustainable practices and projects, businesses can drive meaningful change while aligning with global sustainability goals.

From Commitment to Action

The call for scaling climate finance from billions to trillions is not just a political goal—it’s a necessity. As COP29 and G20 discussions highlight, the stakes have never been higher. Failure to act will not only exacerbate the climate crisis but also jeopardise future progress at events like COP30.

Now is the time for governments, businesses, and international organisations to align efforts and deliver on their promises. At Billion-Air, we are committed to empowering businesses and investors to contribute to impactful climate solutions. By bridging the gap between finance and action, we can help secure a sustainable future for all.