EU zones in on $200B to $300B target for global climate fund

BAKU, Azerbaijan — European Union countries have discussed a new global target of between $200 billion and $300 billion in annual funding to help poorer countries address climate change, according to officials from two EU countries. 

The private discussions offer insight into the possible landing ground rich countries could accept as part of a deal on the fund at the COP29 climate talks in Baku, which are due to conclude Friday.

Western governments have thus far refused to publicly disclose a dollar figure they might find acceptable for the fund. They argue that China, oil-rich Gulf states and other newly wealthy countries should also help fill the pot and say haggling over a final number is premature until the donor list is settled. 

The figure was disclosed to POLITICO by two officials granted anonymity to discuss the sensitive negotiations.

The figures have been “floated” in internal EU discussions and not been proposed within the negotiations in Baku, one of the officials said. “There’s no common EU position for now but … I think that’s realistic,” the official added. 

The other official said the bloc was leaning more toward $200 billion, but that the decision depends on whether the EU can succeed with its push to get emerging economies such as China to contribute funding. 

Asked to confirm the figure, two other EU officials declined. The EU wants the monetary target met by 2035. Poorer countries want a 2030 deadline.

The COP29 talks in Baku are seeking a fresh deal to replace the current target of $100 billion per year in public finance from rich countries to support clean energy and climate defenses in the developing world.

A U.N.-backed expert report, released last week, suggested the target for public finance and the investments it mobilizes should triple to $300 billion.

Poorer countries and the U.N. experts say the actual amount needed is more than $1 trillion per year. Developing countries want that to come from the public balance sheets of wealthy nations. 

The U.S. and EU say they want two targets: A “core” goal centered around public money, and one for all financing from all kinds of sources — including the private sector — that could indeed reach into the trillions. The EU’s figure concerns the core target. 

But the reelection of former U.S. President Donald Trump will almost certainly mean the EU will face more pressure to deliver climate finance. 

Karl Mathiesen contributed reporting from Baku.