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Climate Finance in Azerbaijan

COP29 at a Crossroads: Focus on Climate Finance in Azerbaijan

As the 29th UN climate conference approaches, Azerbaijan prepares to host an important event to bridge the gap between wealthy and developing nations. The main focus will be securing the necessary funds to combat climate change and set new financial goals.

1. Location and Context

COP29 will be held in Baku, Azerbaijan, a country historically dependent on fossil fuels but shifting towards renewable energy.

2. Azerbaijan’s Role

Positioned as a mediator, Azerbaijan aims to facilitate cooperation among oil producers and consumers.

3. Focus on Finance

The primary goal is establishing a new financial target to support the green transition and reduce emissions.

4. Investment Needs

An estimated $2.4 trillion annually is needed by 2030 to help developing countries transition to cleaner energy and adapt to climate impacts.

5. Challenges for Developing Nations

Countries like Zambia and the Maldives face difficulties accessing affordable finance due to high perceived risks and strict conditions.

6. Global Cooperation

The conference will push for broader donor participation and explore new sources of finance, such as carbon charges and wealth taxes.

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