BAKU, Azerbaijan, July 19. Chief negotiator for COP29, Deputy Minister of Foreign Affairs of Azerbaijan Yalchin Rafiyev, reported on how the funds proposed by Azerbaijan for the creation of the Climate Finance Action Fund (CFAF) can be distributed, Trend reports.
"CFAF is Azerbaijan’s first initiative within COP. The key areas of investment activity of this Fund are as follows: to direct 50% of the capital to climate projects in developing countries, to promote the introduction of clean energy technologies, to increase energy efficiency, to increase the resilience of sensitive populations to climate change and to promote the development of advanced technologies.
The other 50% of the expected contributions to this Fund will be used to assist in the implementation of the NDC (national emission reduction commitments) in order to limit the target of an increase in Earth's temperature of 1.5 °C," Rafiyev said during the presentation of the COP29 Action Plan.
According to him, the Fund will generate income, and 20% of the income received as a result of investment will be accumulated in a special rapid Response Fund (2R2F) to provide preferential grant-based support to developing countries in need.
"The 2R2F mechanism will ensure the immediate availability of financial resources to address adverse climate impacts or in the event of natural disasters.
During the 7 months of negotiations with developing countries, we received many requests, in particular from small island States, that in case of natural disasters, these States receive a belated response from international financial organizations. Our idea is able to resolve the issue with prompt assistance to countries facing disaster," explained the chief negotiator.