Money for climate action typically falls into three buckets:
Loss and damage
Two years ago, at COP27, world leaders agreed for the first time to establish a loss and damage fund.
This money is intended to help developing countries recover from the impacts of climate change they are suffering.
For example, in just the past 12 months, the developing world has experienced severe climate-related crises – from Floods in Myanmar There is an ongoing drought in East Africa.
It took decades for the fund to be established because developed countries were wary of treating payments as compensation and accepting liability for climate change under these terms.
Developing countries want the new fiscal target to have sub-targets where money is earmarked for loss, damage and adaptation to climate change – which historically has received one-third of the funding for mitigation.
Slight relief
This is money to help developing countries move away from fossil fuels and other polluting activities. This is where most of the money is given by far as it can often be profitable.
Many countries still have coal power plants that have not reached the end of their lives. They need support to switch to clean energy, such as solar farms.
Adaptation
This is money to help developing countries prepare for the worst impacts of climate change.
It differs from loss and damage because it focuses on the future.
Needs vary depending on where in the world the country is, but may include:
