On Friday 19 July, 4 months ahead of COP29 in Baku, Azerbaijan unveiled an initiative to raise an initial $1 billion in voluntary contributions from fossil fuel producers for the transition and adaptation to climate change in developing countries.
The fund, called the Climate Finance Action Fund (CFAC), will be based in Baku and will be “the first fund with both fossil fuel producing countries and companies across oil, gas and coal”, as described in a press release by COP29 chief negotiator Yalchin Rafiyev.
COP29 is specifically devoted to financing the fight against climate change after 2025, with the aim of raising the level of aid from developed countries to developing countries, currently set at $100 billion per year.
This fund, which would be in addition to existing funds (see EUROPE 13431/7), is one of a list of 14 initiatives in the COP29 action plan.
Azerbaijan, a major oil and gas producer, has come under fire in recent months for focusing on reducing emissions, including carbon capture technologies, rather than moving away from fossil fuels.
For several environmental organisations, including Oil Change International, the fund proposed by Azerbaijan constitutes “greenwashing”. “Inviting fossil fuel interests to play climate champions is a waste of time”, said the organisation.
To see the 14 COP29 initiatives, go to https://aeur.eu/f/d3i (Original version in French by Pauline Denys)