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Nations discuss funding strategies for climate change at UN talks in Baku

independent.co.uk — November 19, 2024, 07:01 AM UTC

At the UN climate talks in Baku, nations are discussing how to raise funds to help poorer countries address climate change. The current goal of $100 billion annually, set in 2009, is being replaced with a new target, with estimates ranging from $1 trillion to $1.3 trillion needed. Rich nations are exploring a mix of grants, loans, and private investments to meet these financial needs. However, developing countries express concern that relying on loans could lead to unsustainable debt, especially for those already affected by climate disasters. Experts suggest that leveraging funds through multilateral development banks could increase spending significantly. However, many developing nations prefer grants and low-interest loans to avoid further debt burdens. The discussions highlight the complexity of financing climate action effectively.

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