A recent report by the United Nations Climate Convention’s Standing Committee on Finance has been criticized for significantly underestimating the financial needs of developing countries in their climate action efforts. The report, released on September 10, estimates that the annual cost of implementing “costed needs” under nationally determined contributions (NDCs) for 98 developing countries ranges between $455 billion and $584 billion.
Developing nations have argued that the new collective quantified goal—a financial target to support their climate actions post-2025—should be in the trillions to more accurately reflect their actual needs. Experts have expressed strong concerns about the report’s findings, pointing out that it does not fully capture the financial realities faced by these countries.
According to the report, there are 5,760 needs reported by 142 Parties, with 2,753 (48%) of these costed needs coming from 98 Parties, totaling between $5.036 trillion and $6.876 trillion. However, the report acknowledges that these figures do not encompass the entirety of needs across all developing countries and regions. The costed needs span different time frames, with some extending from 2015 to 2030 and others from 2020 to 2030.
Harjeet Singh, Climate Activist and Global Engagement Director for the Fossil Fuel Non-Proliferation Treaty Initiative, criticized the UN report for not reflecting the full scale of financial demands. “The latest UN report falls short of capturing the full financial realities that developing countries face. The transition to renewable energy and the rising costs of climate impacts now require trillions annually,” Singh said. “Due to gaps in data and disorganized information, the report presents figures that do not fully account for the needs of all developing nations, particularly for a just transition away from fossil fuels, which demands economic diversification and the creation of green jobs on an unprecedented level.”
Singh further emphasized that the financial estimates for adaptation and addressing loss and damage do not align with the severe conditions on the ground. He called for the new finance goal to be agreed upon at COP29 to recognize these urgent needs and urged wealthy nations to provide the necessary financial support to address the escalating global climate crisis.
