Money talks How Baku negotiators could raise $1tn a year

Countries meeting in Baku for the Cop29 climate summit are under pressure to find ways to raise money to help poorer nations cut greenhouse gas emissions, shift to a low-carbon economy, and adapt to the impacts of extreme weather.

- Fiona Harvey

At least $1tn a year is needed. Here are some of the main ideas being considered.

Reform of the World Bank, International Monetary Fund and other development banks

The World Bank and other multilateral development institutions are supposed to help poor and vulnerable countries alleviate poverty, develop their economies and give citizens access to basic services. Climate finance should be a major focus. But many developing countries complain that this finance is meagre, difficult to access, costly and bureaucratic.

If the World Bank were to help "de-risk" investments in poor countries, for instance by providing loan guarantees, that could unlock billions in finance from both the private sector and public funds.

The World Bank could also provide far more climate finance if its replenishment round, coming up next month in South Korea, elicits sizeable pledges from donor countries. That prospect may, however, have been damaged by the election of Donald Trump in the US - unless other developed countries step up.

Taxes on profits from fossil fuels

Fossil fuel companies, both private and state-owned, have enjoyed an unprecedented bonanza since Russia's invasion of Ukraine in February 2022. Five of the biggest private companies alone made more than $280bn in profit in the two years after the invasion.