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Developed countries urged to find $1 trillion a year for poorer nations as UN climate talks focus on finance

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An independent high-level expert group suggests focusing on mobilizing $1 trillion per year by 2030. It is estimated that private finance could cover approximately half of these needs, given the evolving investment opportunities. Additionally, the required external financing for climate action would amount to just 1% of the global GDP, which is a relatively small proportion of the annual global GDP and less than half of global defense spending.

    1. Any shortfall in investment before 2030 will place added pressure on the years that follow, creating a steeper and potentially more costly path to climate stability.
    2. External finance from all sources, international public and private, along with others, will need to cover $1 trillion per year of the total investment needed by 2030 and around $1.3 trillion by 2035...We argue that cross-border private finance can meet about half of these needs given the changing nature of investment opportunities.
    1. They must use this precious time to talk to each other directly and take ownership of building bridging solutions.
    2. Parties must remember that the clock is ticking.
    1. Different kinds of investment need different kinds of finance... Largest in terms of amount is for energy transition. It is also clear that a lot of that investment would come from the private sector.
    1. It is not just the quantum but also the quality of finance. There needs to be more commitment of concessional capital... Most Countries in the global south are already on the verge of debt trap so in order to help them transition faster, the new climate finance goal is the minimum that countries in the global north need to commit to.
Developed countries urged to find $1 trillion a year for poorer nations as UN climate talks focus on finance