The global effort to achieve the critical climate goal of limiting temperature rise to 1.5 degrees Celsius requires an investment of $1.3 trillion. This investment is significantly less than the potential cost of tens of trillions in losses, damages, and other expenditures anticipated over the next decade if the world experiences a more dangerous and unstable increase of 3 degrees Celsius.
Deputy Prime Minister and Minister for Finance Biman Prasad made these remarks while addressing global leaders at the High-Level segment of COP29, the 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change, in Baku, Azerbaijan. He highlighted that the more favorable scenario of $1.3 trillion is a fraction of what is currently spent annually on fossil fuel subsidies, which amounts to $7 trillion.
Prasad expressed hope that leaders would recognize the opportunity to invest wisely, noting that the social, economic, environmental, and political costs associated with continuing to support fossil fuels far outweigh the perceived benefits.
This call to action reflects an urgent need for global leaders to reallocate resources effectively, harnessing the immense financial capacity already in existence, to mitigate climate risks and create a more sustainable future. Investing in climate solutions not only preserves the planet but also presents economic opportunities through sustainable development.
Summary: At COP29 in Baku, Deputy PM Biman Prasad emphasized that investing $1.3 trillion to combat climate change is crucial to avoid costs in the tens of trillions. He advocated for reallocating resources currently spent on fossil fuel subsidies to mitigate climate risks, urging leaders to recognize the long-term benefits of sustainable investment.
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