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News: The 29th Conference of the Parties (COP29) to be held in Baku, Azerbaijan, from November 11 to 22, is expected to be a “finance COP” as key climate finance issues feature at the top of its agenda.
1. United Nations Framework Convention on Climate Change defines climate finance as local, national or transnational financing, drawn from public, private, and alternative sources, that seeks to support mitigation and adaptation actions addressing climate change.
2. The two major aspects of climate finance includes: A) Sources (public or private) B) End-Uses (climate mitigation or adaptation).
3. Developing countries, Least Developed Countries (LDCs), Small Island Developing States (SIDs) need external financing for climate action.
4. A top priority of COP 29 would be determining a new annual climate finance mobilisation target called the New Collective Quantified Goal (NCQG).
5. Some important steps taken in the direction of climate finance include setting up of the Green Climate Fund (GCF), Loss and Damage Fund (LDF).
