COP30 Presidency Unveils Baku to Belem Roadmap to Mobilise USD 1.3 Trillion for Climate Finance by 2035

The COP30 presidency has unveiled the Baku to Belém Roadmap to 1.3 Trillion, a comprehensive strategy aimed at mobilising at least USD 1.3 trillion annually by 2035. This initiative seeks to assist developing nations in addressing climate change impacts and transitioning to cleaner economies. The roadmap emphasises that this funding level is essential, not optional, to transform financial commitments into tangible support for renewable energy and climate adaptation.

According to the report, developing countries will require approximately USD 3.2 trillion each year by 2035 for climate and nature-related investments. This includes USD 2.05 trillion for clean energy, USD 750 billion for adaptation and loss and damage, USD 350 billion for nature and sustainable agriculture, and USD 50 billion for just transition measures.

Mobilising Global Climate Finance

The roadmap builds on the agreement from COP29 in Baku, where nations urged collaboration among governments, banks, and businesses to mobilise USD 1.3 trillion annually by 2035 under a new global climate finance goal. The document does not establish new rules or funds but serves as a guide to align existing institutions like multilateral development banks and private investors to direct larger and cheaper financial flows to developing countries.

Early estimates suggest contributions of about USD 80 billion from bilateral concessional finance, USD 300 billion from multilateral banks and climate funds, USD 40 billion from South–South flows, USD 650 billion in private cross-border finance, and around USD 230 billion from new low-cost sources.

Addressing Debt and Financial Accessibility

The report highlights the link between worsening climate impacts and a deepening debt crisis. In 2024, developing countries paid USD 921 billion in interest, with 61 countries spending over 10% of their government revenues on interest payments—more than on health or education. It underscores debt swaps and climate-resilient debt clauses as practical tools already in use.

To make finance more accessible and affordable, the report suggests that multilateral climate funds should triple their annual disbursements by 2030 compared to 2022. Additionally, multilateral development banks should offer more loans at lower interest rates for longer durations, including in local currencies.

Implementing Practical Solutions

The roadmap identifies potential finance sources such as government-backed concessional funds, private investments, South–South cooperation, carbon markets, special drawing rights, and voluntary levies. It calls for tools that directly reduce borrowing costs, like guarantees sharing risks with lenders and mechanisms freeing up capital for fresh loans.

UN Climate Chief Simon Stiell stated that the roadmap signifies a new phase in global climate cooperation. "The Baku to Belém Roadmap to 1.3 Trillion is a plan for action... At its core, the Roadmap is about turning commitments into practical, inclusive climate finance action that’s effective in delivering real-world outcomes that protect lives and strengthen economies," he said.

India's Role in Climate Finance

For India and the broader Global South, the roadmap reflects long-standing demands—emphasising affordable public finance at its centre while lowering borrowing costs. It also aims to expand grants and concessional loans for adaptation and loss and damage while simplifying access procedures.

The document continues the decision made in Baku to triple outflows from UN climate funds by 2030 while addressing barriers like high interest rates and complex procedures. Vaibhav Chaturvedi from CEEW noted that the roadmap "pushes the right buttons" by highlighting equity and fairness while providing a coherent framework to scale up finance in the short to medium term.

The roadmap outlines five key fronts: replenishing grants and concessional finance; rebalancing fiscal space and debt; rechannelling private finance at lower cost; revamping capacity and coordination; reshaping systems so capital moves more fairly and efficiently.

"For the first time," Stiell added, "more than 200 governments, banks, businesses, and communities have joined forces to outline workable solutions for mobilizing climate finance." The roadmap demonstrates how collective efforts can scale up climate finance towards USD 1.3 trillion annually by 2035.

With inputs from PTI