The United Nations Conference on Climate Change will be held later. COP29which begins on November 11 in Baku, Azerbaijan.
Why is it important?
Because this year a transcendent dialogue on financing is expected.
Renewables are currently the most economical energy source. However, to make a fair global transition towards energies such as solar and wind, it is necessary to invest intelligently. Intelligence is also needed to adapt to the inevitable impacts of climate change and help rebuild affected communities.
This Conference will evaluate the cost of these investments and establish new formulas to obtain the necessary resources. For example, it will conduct a deep examination of how certain harmful and totally extravagant subsidies, such as those received by the fossil fuel sector and industrial agriculture, actually exacerbate the climate crisis.
How much will it cost to have a healthy climate?
Nobody knows for sure. But it is absolutely essential that world leaders in Baku reach agreement on a new financial commitment to aid developing countries. African leaders are calling for at least $1.3 trillion annually in climate finance. Not only for its transition towards a new low-emissions reality, but also to build resilience since we have already surpassed the critical planetary boundaries.
What we do know is that the bill will be much, much cheaper if we act now. Investments in climate action and the protection, sustainable use and restoration of nature generate returns far greater than the initial cost of such investments.
From what well can these resources be drawn?
Finance is essential to combat climate change, biodiversity loss and land degradation. This must be aligned with the global reforms that are being debated in the 4th International Conference on Financing for Developmentdecisive reforms to guarantee the effective use of the resources necessary for the SDGs.
We need an adequate and efficient financial architecture for the 21st century, that is, investments that respond directly to the goals established in the SDGs and the Paris Agreement.
The UN calls for action through initiatives such as SDG Stimulus o Bridgetown Initiativesand to provide adequate resources Loss and Damage Fund for Developing Countries.
But this problem is not solved just by investing money, right?
Exact. It is necessary that private sector actors take the necessary steps to change their operating models, which overexploit resources and destroy the environment, and rapidly carry out a transition towards green business models.
We must transform our productive and consumption habits, especially in the agriculture, fishing, mining, textile and infrastructure sectors, which are responsible for close to 80% of the destruction of nature.
