Climate Finance for Energy Transition with Focus on Cost of Phasing Out Fossil Fuel

Abstract The new collective quantitative target (NCQG) of at least $300 billion per year by 2035 was adopted at COP29 held in Baku in 2024. Given that criteria for allocating climate finance have not been specified, will the current trend of economic-based climate finance continue, or will it gradually shift towards human rights-based? Since the current economic-based trend has created a fossil fuel future for fossil-fuel-producing developing countries (FFPDCs), there is a need to rethink the criteria for allocating finance based on Human Rights-Based discourse. Such a trend is applicable in compensation for leaving fossil fuel underground. The Human Rights-Based approach ensures the human rights of poor and indigenous people in the sacrifice zones in the FFPDCs in line with the Paris Agreement. In this regard, a tool for allocation of climate finance could be the Human Rights Impact Assessment of fossil fuel extraction projects, alongside the Human Development Index of FFPDCs.