COP29 may drive forward climate finance

Significance By setting a broader target to mobilise USD1.3bn per year for developing countries by 2035, however, delegates have, for the first time, placed a realistic figure on the cost of global climate action. The deal signals to governments, development banks and private markets what will be required of them if the worst climate change impacts are to be avoided. Impacts The public policy shift from fossil fuel subsidies towards green energy subsidies is likely to intensify. Domestic policy in China, which dominates renewable capacity investment, will continue to determine the speed of the energy transition. Carbon markets will scale up significantly following the agreement of Article 6 rules. Levies on global shipping and aviation, and transformational multilateral development bank reform are all slightly more likely than before.