Canada makes major announcement at COP29
On Tuesday, Canada unveiled details of a new, blended finance platform that is intended to funnel more funding into high-impact climate projects in the world's vulnerable regions most impacted by extreme weather.
One of the focal, and divisive, points of this year's COP29 summit so far has been finance, and on Tuesday, Canada pledged a significant initiative to help countries most affected by climate change.
The main objective for the almost 200 countries at the United Nations' 29th meeting of the Conference of the Parties (COP) to the UN Framework Convention on Climate Change (UNFCCC), or COP29, is to come to terms on a deal that will earmark up to trillions of dollars in financing for global climate projects.
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Canada made a notable contribution on Tuesday, announcing details of a new, US$1.48-billion (C$2.07 billion) blended finance platform called GAIA. It will organize climate-centred investments for the world's vulnerable regions most impacted by extreme weather.
"This is an incredibly exciting initiative that responds directly to the needs of emerging markets and developing economies. Canada looks forward to seeing the range of projects that will give people in developing countries a greater level of security and well-being in the face of a rapidly changing climate," said Steven Guilbeault, Canada's Minister of Environment and Climate Change, in a news release on Tuesday.
New platform will make more funds available for high-impact action projects: Federal government
According to the federal government's announcement, the goal of GAIA is to increase the availability of finance for high-impact climate action projects in up to 25 emerging markets and developing economies. As for where the money will go, 70 per cent of the platform will aid adaptation projects while 25 per cent of the funds will be invested in small island, developing states and least developed countries.
It will be co-founded by FinDev Canada in partnership with the Mitsubishi Financial Group (MUFG), with a mainstay contribution from the Green Climate Fund.
"Canada, with its climate finance, has been demonstrating leadership and innovation. GAIA is a strong example of this innovation, and is a model that can be replicated to mobilize funding from a range of sources and partnerships to meet our climate finance goals. Innovative and accessible funding models like this are what we need to scale up climate financing and meet growing global needs," said Guilbeault.
He noted that some of the worst impacts of climate change are felt among developing nations in the global south, whether they are hurricanes that have "rocked the Caribbean, sea-level rise impacting small island nations, or drought conditions that threaten the livelihood of many."
NOAA satellite imagery of Tropical Storm Milton on Oct. 5, 2024. (NOAA)
"Climate finance is essential to bridge the gap in support for people who bear the least responsibility for climate change, but who can profoundly benefit from innovative projects to address it. Partners in numerous developing nations have been asking for accessible investments to fund solutions that will benefit adaptation and mitigation needs," said Guilbeault.
COP29 is underway in Baku, Azerbaijan, and runs until Nov. 22. The yearly gatherings are critical, international conventions as the world tries to deal with the escalating climate crisis.
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With files from Reuters.
Thumbnail courtesy of Getty Images/Heiness/2181929555-170667a.
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