KATHMANDU, Nov 24: At the COP-29 conference held in Baku, Azerbaijan, wealthy nations agreed to provide a fund of $300 billion annually to assist poor countries in combating climate change and tackling its impacts. This agreement is set to expire in 2025.
With adequate preparation and effective utilization of this fund, developing countries like Nepal, which suffer the most due to climate change, can benefit immensely from this fund. Prior to this, developed countries had committed to provide a climate fund of one billion US dollars by 2020. The fund faced criticism for not being utilized effectively.
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In any case, the Baku conference reached an agreement on the rules for a global market for carbon credit trading. This is expected to generate billions of dollars in investment for new climate change mitigation projects, ranging from forest restoration to the adoption of clean energy technologies and, at the same time, is expected to be utilized more effectively by the target nations.
According to this agreement, billions of dollars will be mobilized for new projects aimed at helping reduce global temperature rise.
After decades of discussions and negotiations on carbon credit trading, stakeholders stated that the agreement reached at the Baku conference represents a significant success. They believe this commitment will play an instrumental role in reducing greenhouse gas emissions that contribute to fighting climate change.
Nepal currently contributes only 0.027 percent of global carbon gas emissions, which is a very small contribution on a global scale. However, a study by the Germanwatch's Global Climate Risk Index 2021 highlighted Nepal as the 10th most vulnerable country to climate risks in the world.
