In response to yesterday’s announcement (11 July) of a ‘climate investment fund for the future’, by Azerbaijan – who hold the Presidency for COP29 – climate campaigning organisation 350.org is raising serious concerns over the efficacy and legitimacy of the fund.
350.org demands urgent accountability measures to ensure fossil fuel companies pay their fair share for the energy transition and transition away from fossil fuels, instead of establishing ineffective initiatives that distract from the oil and gas industry’s continued irresponsible expansion plans.
‘Azerbaijan’s ‘climate investment fund for the future’ is a smoke screen, allowing fossil fuel giants to profit from climate finance instead of paying for the damage they have caused. The role of a COP presidency is to drive forward highly concessional climate finance, not profit from it. We demand accountability through tax levies, not token charity, in this climate emergency. Those responsible for the climate crisis must pay for what they have created.’
ANDREAS SIEBER
Associate director of policy and campaigns, 350.org
The announcement of this fund comes at a critical time, as the world grapples with the escalating impacts of climate breakdown.
However, the involvement of fossil fuel companies in climate finance with voluntary and very limited contributions raises serious concerns about the genuine commitment of these corporations to addressing the crisis.
The $500 million fund constitutes only 0.025% of last year’s $1.8 trillion clean energy investment in 2023, which amounts to an insignificant contribution. On top of that, these funds typically only spend a fraction of their capital annually.
This is also a commercial fund. To genuinely impact the energy transition, the fund needs to provide highly concessional finance and grants to countries with limited fiscal space and high costs of capital. We must distinguish profit-driven investments from genuine efforts.
350.org has warned that countries and national companies, like Azerbaijan’s SOCAR, that plan to expand fossil fuels, are using this fund ‘to distract from their deadly reluctance to transition away from oil and gas.’
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