Azerbaijan, the host of COP29 climate summit, launched a climate finance action fund.
The “Climate Finance Action Fund” (CFAF) will receive annual contributions from fossil fuel-producing countries and companies.
This fund will help developing countries as well as other countries to reach the 1.5C temperature target.
Initially, $1 billion will be raised through members with annual contributions as fixed sums or based on production volume.
The COP29 is set to be held in Baku between November 11 and 22 in 2024.
The 50 per cent of the fund will go to climate projects in developing countries focused on clean energy, energy efficiency, climate resilience, and new technologies.
The remaining 50% will help countries NDC target to achieve the 1.5-degree-Celsius target.
Twenty per cent of revenues will be directed to a Rapid Response Funding Facility for immediate, highly concessional, and grant-based disaster response support.
The COP29 Presidency’s plan for the climate summit will aim to phase out fossil fuels.
