COP29 CEO Elnur Soltanov discusses new climate financing targets and their impact

By Nazrin Abdul

In a brief interview with Azernews, Elnur Soltanov, CEO of COP29, shared his thoughts on the new climate financing target set by Multilateral Development Banks (MDBs) and its potential to address the urgent needs of low- and middle-income countries.

Soltanov acknowledged the significance of the MDBs' new climate financing target but emphasized that much more is needed. “Studies show that developing countries, excluding China, need approximately $2.4 trillion in climate finance, with $1 trillion of that coming from external sources,” he explained. “But if we put aside the numbers for a moment, the key target we should be looking at is $1.5 Celsius. For the finance number to be truly effective and acceptable, it must push the world towards this figure."

He continued, “Any number that takes us closer to $1.5 Celsius is a step in the right direction. Unfortunately, anything less than that will not suffice."

It should be noted that the Multilateral Development Banks (MDBs), including prominent institutions such as the World Bank Group, the Asian Development Bank (ADB), and the African Development Bank (AfDB), have projected that their combined climate finance contributions will reach USD $120 billion annually by 2030. Of this, USD $42 billion is earmarked specifically for adaptation efforts, aimed at helping vulnerable countries address the impacts of climate change.

The MDBs' commitments also include a significant goal of mobilizing USD $65 billion annually from the private sector, marking a key initiative to leverage private finance for climate action in low- and middle-income nations.

For high-income countries, the MDBs expect their collective climate financing to total USD $50 billion annually, with USD $7 billion allocated to adaptation. In addition, they aim to mobilize another USD $65 billion from private sector investments to support climate projects.

These estimates were presented during a high-level meeting in Baku, hosted by COP29 President Mukhtar Babayev. The event was attended by heads of state, senior executives from international financial institutions, and representatives from global organizations like the International Monetary Fund (IMF). The meeting underscored the critical importance of financial support to meet the scale of the global climate crisis and accelerate progress toward achieving the goals of the Paris Agreement.

Soltanov’s comments underscore the growing urgency to scale up climate finance for developing nations as the world strives to meet the 1.5°C climate goal outlined in the Paris Agreement. His statement highlights the critical role of MDBs and other financial institutions in driving the necessary investments to support climate action in vulnerable regions.