Challenges and Expectations for Climate Finance

The upcoming UN Climate Conference COP29 aims to establish a new climate finance goal to replace an outdated commitment made over a decade ago, where wealthy nations pledged $100 billion annually to support developing countries. The discussion of trillions in climate financing signals a significant increase in funding needs, pushing for a better framework to aid nations like Pakistan that have suffered devastating climate events. A major focus is on reforming the existing financing mechanisms to transition from loans to grants, alleviating the debt burden on affected countries while attracting private sector investments. However, the success of negotiations at COP29 may be hindered by geopolitical tensions and differing priorities among major economies, especially following the election of Trump.