UN chief slams ‘inadequate’ climate loss and damage funding at COP29 in Baku

Speaking at the COP29 climate summit in Baku, Azerbaijan, Guterres highlighted that the fund’s current size fails to match the scale of climate-induced destruction faced by developing nations, noting it would cover less than a quarter of the damage caused by Hurricane Yagi in Vietnam this September alone.

“Climate disasters are piling up – harming those who’ve done the least, the most,” Guterres told delegates at a high-level dialogue on loss and damage funding arrangements. “We see economies wrecked, lives taken, livelihoods lost, and development denied.”

The Loss and Damage Fund, established at COP27 in Egypt and operationalised at COP28 in Dubai last year, represents a landmark victory for developing nations seeking compensation for climate impacts. However, Guterres argued that current funding levels fall far short of addressing the mounting toll of climate change.

The UN chief called for innovative funding mechanisms, including solidarity levies on shipping, aviation, and fossil fuel extraction sectors, alongside the implementation of carbon pricing to help finance climate action. He also urged reform of multilateral development banks to enhance their lending capacity for climate response.

“The creation of the Loss and Damage Fund is a victory for developing countries, for multilateralism, and for justice,” Guterres said. “But its initial capitalisation of $700 million doesn’t come close to righting the wrong inflicted on the vulnerable.”

His remarks come as new temperature records underscore the accelerating pace of climate change. Recent data has confirmed unprecedented global heat, with 2023 marking the hottest year on record and 2024 continuing the trend of rising temperatures.

The Secretary-General particularly criticised the fossil fuel industry, which he said continues to “reap massive profits and subsidies” while contributing disproportionately to climate destruction. This criticism aligns with growing international pressure for fossil fuel companies to bear more responsibility for climate-related damages.

In a separate address to the conference focusing on Africa’s renewable energy potential, Guterres highlighted the continent’s particular vulnerability to climate impacts despite its minimal historical emissions. He noted that Africa hosts 60 per cent of the world’s best solar resources yet has only around one per cent of installed solar capacity, with approximately 600 million Africans lacking access to electricity.

COP29 focuses on climate finance

The COP29 summit in Baku, running through late November, marks a critical juncture for international climate finance discussions. Countries are working to establish a new climate finance goal to replace the previous $100 billion annual target, which developed nations failed to meet on schedule.

Climate finance experts have estimated that developing nations may need trillions of dollars annually by 2030 to address climate impacts and transition to clean energy. A recent UN report indicated that climate-related economic losses in developing countries could reach $580 billion annually by 2030 and $1.7 trillion by 2050.

Guterres urged governments to match their commitments with actual funding, emphasising that bilateral flows alone would be insufficient to meet the challenge. He called for a comprehensive approach that includes increased public finance, private sector mobilisation, and innovative funding mechanisms.

The Secretary-General’s intervention at COP29 reflects growing concern about the widening gap between climate finance needs and available resources, particularly as extreme weather events become more frequent and severe. The conference continues with negotiations on various aspects of international climate action, including the global stocktake of progress toward Paris Agreement goals.

The UN climate talks in Azerbaijan’s capital will run until November 22.