Azerbaijan proposes $1 billion climate finance action fund at COP29

COP29 Lead Negotiator Yalchin Rafiyev has said that Azerbaijan has proposed the creation of a $1 billion Climate Finance Action Fund (CFAF) at the upcoming COP29 conference.

Rafiyev announced the proposal during the presentation of the COP29 Presidency's Action Plan, Caliber.Az reports citing the local media.

The CFAF is designed to be capitalised through contributions from fossil fuel-producing countries and companies involved in the oil, gas, and coal sectors. Azerbaijan is set to be one of the fund's founding members, with a total of 10 shareholders already committed.

The CFAF aims to support climate projects in developing nations, aligning with the next generation of Nationally Determined Contributions (NDCs) to limit global warming to 1.5°C. The fund will operate as a public-private partnership, mobilising private sector investment while de-risking contributions to mitigation, adaptation, and research and development initiatives.

Additionally, the CFAF will feature special funds providing preferential and grant support to rapidly address the impacts of natural disasters in vulnerable developing countries. The fund will become operational following an initial fundraising round and the commitment of 10 participating countries as shareholders.

Baku will host the 29th Conference of the Parties to the UN Framework Convention on Climate Change (COP29).

A group of Eastern European countries has chosen Baku, the capital of Azerbaijan, to host COP29 climate talks next year.

Earlier, Bulgaria withdrew its candidacy to host the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change in favour of Azerbaijan.

Moreover, Baku and Yerevan agreed to support each other at some international venues. In a joint statement, Armenia said it would support Azerbaijan's bid to host the COP29 summit.

The conference is being held in rotation by five UN regional groups, and Eastern Europe will take part next year.