BAKU, Azerbaijan, July 12. Azerbaijan intends to launch a "Climate Investment Fund for Future" project, which will involve funds from the State Oil Company of Azerbaijan Republic (SOCAR), a senior COP29 official said, Trend reports via Financial Times.
"To attract climate finance ahead of COP29, scheduled for November in Baku, Azerbaijan aims to take a symbolic step by presenting a fund under the working title 'Climate Investment Fund for the Future,' supported by SOCAR. The fund aims to attract additional capital from other fossil fuel producers, seeking at least $500 million for green projects," the article reads.
The source indicated that the investment fund would serve as an initial step for fossil fuel companies to participate in climate change mitigation efforts.
Companies could contribute lump sums or allocate a portion of their revenues.
At COP28 in Dubai in December 2023, nearly 198 countries worldwide agreed to transition from fossil fuels to renewable energy sources in a "fair, orderly, and equitable manner" to achieve zero emissions by 2050.
"Any investment returns from the climate fund will be reinvested back into the fund. Discussions are ongoing regarding the allocation of 50 percent of the capital to support developing countries most affected by extreme weather events. Once the concept is finalized, we will approach parties we consider potential contributors. We aim to engage all countries involved in fossil fuel production and use, encouraging them to voluntarily participate in this initiative," the source said.
To note, at COP28, the parties confirmed achieving the climate finance target of $100 billion per year since 2009. Currently, discussions are underway to set a new climate finance target, which will be deliberated upon at COP29 and COP30.
This November, Azerbaijan will host COP29. This decision was made at the COP28 plenary meeting held in Dubai on December 11 last year. Baku will become the center of the world and will receive about 70–80,000 foreign guests.
The United Nations Framework Convention on Climate Change is an agreement signed at the Earth Summit in Rio de Janeiro in June 1992 to prevent dangerous human interference with the climate system. COP - the Conference of the Parties - is the highest legislative body overseeing the implementation of the Framework Convention on Climate Change. There are 198 countries that are parties to the Convention. Unless the parties agree otherwise, the COP is held annually. The first COP event took place in March 1995 in Berlin, and its secretariat is located in Bonn.
