Blog by Shannon McGuire, Junior Associate 

On November 24, 2024, the UN Climate Change Conference created a new financial goal (“COP29”) to aid developing countries in protecting their people and economies against climate disasters.[1] The conference brought nearly 200 countries together to triple prior finance funding to developing countries to 300 billion USD annually by 2025 and to scale up financing from private and public sources to developing countries in the amount of 1.3 trillion USD per year by 2035.[2] The United Nations Framework Convention on Climate Change (“UNFCCC”) and the Paris Agreement delegate funding to high-income countries that historically contribute the most to climate change.[3] Moreover, under international human rights law, all states that are able to contribute to the fund have an obligation to participate.[4] While some believe this financial plan acts as a leading milestone in climate change regulations, others were hoping for a more ambitious deal.[5]

Experts argue that 5 trillion USD in annual funding is necessary to address the growing climate issues caused by historically affluent countries.[6] Moreover, past promises of funding remain unmet, which diminishes trust among participating nations.[7] These funds are essential in adapting, relocating, and addressing the losses and damages caused by climate change in developing countries, which is leading some organizations to call for a binding framework on stronger tax regimes.[8] In attempting to transition away from fossil fuels, stronger tax policies will allow a fairer allocation of resources, resulting in sustainable growth in under developed nations.[9] For example, shipping is responsible for around 3% of global emissions.[10] Models for stronger taxation “include a Pacific Islands and Caribbean proposal for a flat rate of $150/ton of carbon dioxide equivalent (CO2e), rising every five years.”[11] Shipping levies will be discussed in April during an Internation Maritime Organization meeting and is currently the closest levy to being agreed upon.[12]

Stronger taxation policies on the global scale could lead to meeting the goals set forth in COP29, thus combating the impacts of fossil emissions in underdeveloped countries and increasing international trust.

[1] COP29 UN Climate Conference Agrees to Triple Finance to Developing Countries, Protecting Lives and Livelihoods, United Nations Climate Change (Nov. 24, 2024), https://unfccc.int/news/cop29-un-climate-conference-agrees-to-triple-finance-to-developing-countries-protecting-lives-and.

[2] Id.

[3] COP29: What you need to know about the global climate summit, Amnesty Int’l (Nov. 4, 2024), https://www.amnesty.org/en/latest/news/2024/11/cop29-what-you-need-to-know-about-the-global-climate-summit/.

[4] Id.

[5] Matt McGrath, Huge deal struck but is it enough? 5 takeaways from a dramatic COP29, BBC (24 Nov. 2024), https://www.bbc.com/news/articles/cp35rrvv2dpo.

[6] Sandy Almarredweh, Tax reform needed to boost climate resilience in poor nations, climate advocates say, Jurist news (Jan. 16, 2025, 3:03 PM), https://www.jurist.org/news/2025/01/rights-ngo-calls-for-global-action-on-climate-justice-bridging-the-climate-finance-gap/.

[7] Id.

[8] Id.

[9] Id.

[10] COP29 climate talks: What new taxes could help raise money to fight climate change?,Reuters (Nov. 19, 2024, 12:37 PM), https://www.reuters.com/sustainability/sustainable-finance-reporting/what-new-taxes-could-help-raise-money-fight-climate-change-2024-11-19/.

[11] Id.

[12] Id.