Climate finance is within reach

The United Nations Climate Change Conference (COP30) has convened in Belem, Brazil. Apart from discussions on scientific and technical issues, much of the debate is expected to be focused on the resources needed for mitigation and adaptation.

- RAKESH MOHAN & JANAK RAJ

Though estimates of such financing costs have fallen over time, most still remain very large, implying the need for large financial transfers from advanced to emerging market and developing economies (EMDEs).

Recent studies have estimated climate finance requirements of EMDEs at $1-4 trillion per year up to 2030, which is seen as daunting, leading to even less action than might have been possible. Also, these estimates rely on top-down approaches and are difficult to parse for a better understanding of sectoral and regional details.

Our study “Climate Finance Needs of Nine G20 EMEs: Well Within Reach” estimates the climate finance requirements of the nine G20 EMEs — Argentina, Brazil, China, Indonesia, India, Mexico, the Russian Federation, South Africa and Turkiye — till 2030. Our estimates are granular and address the incremental investment needed for mitigating climate change over and above the investment required in the business-as-usual scenario (BAU).