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Nazrin Abdul

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As COP29 unfolds in Baku, global leaders and climate experts are converging to tackle the urgent issues surrounding climate change. Joshua Simeon Steib, an observer from the United Nations Climate Change division, offered his thoughts on the significance of this year's summit, particularly the focus on climate finance, the newly launched Climate Finance Action Fund (CFAF), and the critical role of public-private partnerships in driving innovation.

Reflecting on his impressions of COP29, Steib described the event as a dynamic space where thousands of stakeholders come together to push the envelope on climate action. He emphasized that climate finance for developing countries remains one of the most pressing issues on the agenda. "This year, one of the biggest topics is climate finance, particularly for the most vulnerable nations," Steib said. While climate finance has been a focus of COP discussions for years, he pointed out that the real-world funding allocations have often not lived up to the rhetoric.

"In previous years, we've seen large amounts of funding go toward fossil fuel subsidies, while only a fraction has been directed toward the loss and damage fund," Steib explained. Last year, only $700 million was allocated to the loss and damage fund at COP28, which is a fraction of what is needed to support the most climate-vulnerable communities.

At COP29, Steib stressed the importance of advancing the new collective, quantified goal for climate finance, a commitment that is crucial for meeting global climate targets and ensuring financial resources reach those most in need. "The key challenge is figuring out how we can get more resources into the hands of the most impacted countries and communities," he added.

One of the most promising developments at COP29 is the launch of the Climate Finance Action Fund (CFAF), a new initiative designed to provide much-needed funding for climate projects, particularly in developing countries. The CFAF aims to bridge the gap between financial pledges and real-world investments by providing targeted financial support for innovative climate solutions.

Steib recognized the CFAF as a crucial step forward in addressing the financing gap that has hindered progress in climate action. "The CFAF represents a bold new approach to unlocking funds for climate adaptation and mitigation efforts," he said. "It is designed to support initiatives that not only mitigate climate change but also drive long-term resilience in the most vulnerable regions."

The CFAF focuses on channeling funds into innovative climate technologies, sustainable infrastructure, and capacity-building projects that empower communities to adapt to the changing climate. By attracting both public and private investment, the CFAF aims to scale up solutions that can transform entire regions, particularly in the Global South, where climate impacts are often felt most acutely.

Steib stressed the need for strong international collaboration to ensure the fund’s success. "The CFAF provides an opportunity to leverage both public and private sector contributions to build a more sustainable future," he said. "But the key is ensuring that the money goes where it's needed most, and that it helps drive systemic change, not just quick fixes."

The success of initiatives like the CFAF hinges on effective collaboration between the public and private sectors. Steib highlighted the importance of aligning the different priorities of both sectors—public institutions that focus on long-term sustainability and private enterprises seeking returns on investment.

"One of the biggest challenges we've seen is how to bring together public and private interests," Steib said. "On the one hand, you have the public sector focused on infrastructure, resilience, and long-term impact; on the other hand, the private sector is looking for immediate returns and risk reduction. Bridging this gap is critical to unlocking the funding needed to drive innovation and support large-scale climate solutions."

In his view, partnerships must be built on mutual trust and a shared commitment to addressing climate change. "It's essential to identify projects where both sectors can benefit and work together to drive forward innovation," he added. "But there's still a long way to go—there have been promises in the past about public sector leadership in climate finance, and we haven’t seen the level of follow-through that’s needed."

The CFAF, as a new initiative, represents a step in the right direction, but Steib believes that much more is required from both sectors. "Governments must honor their pledges and be more transparent about where funds are going. The private sector must step up with bold investments in green technologies. Only through stronger collaboration can we accelerate the pace of change."

As COP29 progresses, Steib expressed cautious optimism about the potential for meaningful action. He stressed that while the new initiatives, such as the CFAF, hold promise, the real challenge lies in turning these commitments into tangible outcomes.

"This is a crucial moment in the fight against climate change," Steib concluded. "COP29 must be a turning point—not just for setting goals but for delivering the finance and the action that will make those goals a reality. The CFAF is a step in the right direction, but we need all hands on deck to ensure it leads to real, lasting change."

With continued focus on climate finance, effective public-private partnerships, and funding mechanisms like the CFAF, COP29 could mark a decisive moment in the global push to address the climate crisis.