Why it’s in rich nations’ interests to fund climate finance

Abstract:

As the Spanish city of Valencia recovers from devastating flash floods and southern US states mop up after two hurricanes in a month caused US$300 billion in damages, it’s clear that even the richest countries face immense costs from climate change. Those costs will only mount — unless carbon dioxide emissions are curbed worldwide. That’s why negotiations this week at the 29th UN climate conference of the parties (COP29) in Baku are so important. Delegates must agree on the shape and scale of a system of climate finance that will help low- and middle-income countries (LMICs) to invest in decarbonization and cope with climate impacts. High-income countries (HICs), together with private donors, are expected to contribute the most — at least $2 trillion annually.