On Finance Day at COP29, the spotlight turned to climate funding, with calls for transformative investment in resilience and sustainability. Negotiations focused on creating a more equitable climate finance structure, especially for Small Island Developing States (SIDS) that are highly vulnerable to climate impacts yet burdened by debt.

The Independent High-Level Expert Group on Climate Finance (IHLEG) released a report proposing an ambitious target of $1.3 trillion in climate funding by 2035. Sherry Madera, CEO of CDP, highlighted that actual financing needs could be much higher, with some estimates suggesting figures between $5 and $60 trillion per year. “The real challenge is to start mobilizing significant amounts—$1 to $3 trillion a year—to make meaningful progress,” Madera stated, emphasizing that coordinated public-private efforts are essential.

For SIDS, the stakes are especially high. Joyelle Trizia Clarke, the Minister of Sustainable Development and Climate Action for Saint Kitts and Nevis, voiced her concerns about how adaptation funding often comes in the form of loans, adding to the debt burdens of vulnerable nations. “Our survival depends on finance solutions that don’t deepen our debt,” Clarke explained, advocating for dedicated funding channels specifically for climate resilience.

For the first time during COP29, activists were allowed to stage protests within the venue, urging wealthier countries to increase their climate commitments. Sandra Guzman from the Climate Finance Group for Latin America and the Caribbean demanded that funds be raised in the trillions, rather than billions, to address the full scope of climate adaptation, mitigation, and reparative needs. “The climate finance gap must be filled if we’re to tackle emissions and protect communities already suffering from climate impacts,” Guzman stated.

As ministers gather in Baku next week, hopes are high for additional progress on a draft climate finance framework to support these ambitious targets.