Baku to Belem Roadmap to 1.3 Trillion
The Baku to Belem Roadmap aims to raise and channel at least $1.3 trillion annually by 2035 to assist developing countries in addressing climate change impacts and transitioning to cleaner economies.
Key Objectives
- Transform financial promises into actionable support for renewable energy, adaptation, and post-disaster rebuilding.
- Encourage collaboration among governments, banks, and businesses to mobilize funds.
Funding Sources
- Government-backed concessional funds
- Private investments
- South-South cooperation
- Carbon markets
- New sources like special drawing rights and voluntary levies
Estimated contributions include $80 billion from concessional finance, $300 billion from multilateral banks and climate funds, $40 billion from South-South flows, $650 billion in private finance, and $230 billion from low-cost sources.
Strategies for Financial Accessibility
- Tripling annual disbursements by multilateral climate funds by 2030.
- Offering loans at lower interest rates and for longer durations.
- Tools to reduce borrowing costs, such as risk-sharing guarantees and currency loss protection.
Addressing Debt and Climate Finance
- Link between worsening climate impacts and deepening debt crises.
- Developing nations paid $921 billion in interest in 2024.
- Advocacy for debt swaps and climate-resilient debt clauses.
Financial Needs
- Developing countries require approximately $3.2 trillion annually by 2035 for climate and nature-related investments.
- Allocation includes $2.05 trillion for clean energy, $750 billion for adaptation and loss and damage, $350 billion for nature and sustainable agriculture, and $50 billion for just transition measures.
Plan Components
- Five Key Fronts:
- Replenishing grants and concessional finance
- Rebalancing fiscal space and debt
- Rechanneling private finance at lower cost
- Revamping capacity and coordination
- Reshaping systems for fairer and more efficient capital movement
UN Climate Chief Simon Stiell emphasized that the roadmap marks a new phase in global climate cooperation, advocating for practical, inclusive climate finance action to protect lives and strengthen economies.
