Canada pushes for transformative Climate Finance Deal at COP29

Tashi Farmilo

Article written prior to closing of COP29

As the world faces escalating climate challenges—rising temperatures, destructive storms, and alarming biodiversity loss—Canada is calling for bold, collective action at the United Nations Climate Change Conference (COP29) in Baku, Azerbaijan. Environment and Climate Change Minister Steven Guilbeault is leading the charge, urging global leaders to agree on a transformative climate finance goal to address the scale and urgency of the crisis.

“Canada has come to COP29 ready to secure a new climate finance goal that addresses the nature and scale of the climate crisis,” Guilbeault stated. “Outside the halls of these important negotiations, the urgency of action is undeniable. Rising global temperatures, more frequent extreme weather events like wildfires and hurricanes, and the rapid loss of biodiversity all demonstrate the profound and lasting impacts that climate change is having on the planet.”

Guilbeault’s words are set against a backdrop of growing concern. This year, Canada suffered its worst year on record for insured losses from wildfires and floods, with thousands of Canadians displaced and billions of dollars in damages. Globally, nations in the Global South—particularly Small Island Developing States and Least Developed Countries—face existential threats from rising seas and severe droughts. Guilbeault stressed the moral and practical imperative of aiding these nations. “We need to scale up investment in mitigation and adaptation, particularly to support the most vulnerable nations and communities,” he said. “A new collective finance goal is a critical step to help us get there.”

The negotiations at COP29 centre on the New Collective Quantified Goal (NCQG), which would replace the $100 billion annual target set in 2009. That figure, while significant at the time, has proven inadequate in addressing the growing scale of climate impacts. Guilbeault stressed that the NCQG must be more than just a financial target—it must provide a clear framework for effective and accessible funding that ensures the global community keeps the 1.5 degrees Celsius target within reach.

“While the numbers are critical, we also need the right framework,” he explained. “A framework that makes finance more accessible, acknowledges existing financial contributions, and helps close the global investment gap is how we encourage everyone to deliver finance effectively.”

Canada has already taken steps to address these concerns. At last year’s COP28, it pledged $16 million to launch the Fund for Responding to Loss and Damage, designed to help nations recover from irreversible climate impacts. This year, the Canadian government announced the creation of GAIA, a $1.48 billion finance platform aimed at supporting clean energy projects and climate resilience in up to 25 developing countries. With 70 percent of GAIA’s funding directed toward adaptation projects and 25 percent allocated to vulnerable states.

“Finance is all about partnership,” Guilbeault noted. “Increasing investments to support clean energy, clean cooking, and energy security require reforms to ensure that funding reaches the people and communities on the frontlines of climate change in developing countries, including Indigenous peoples, women, workers, and young people.”

As negotiations continue, Guilbeault’s focus remains on building trust among nations. “Things have changed significantly since the first goal was set,” he said, reflecting on lessons learned since the original $100 billion commitment. “The development of a new goal provides us with a collective opportunity to show that the Paris Agreement is working to tackle the climate crisis. Let us show the world that we can keep 1.5 degrees Celsius within reach and agree to a finance goal that will help us get there.”

The stakes for COP29 are monumental, not only for vulnerable countries but for the global economy and the planet’s future. Guilbeault’s closing message underscored both the challenge and the opportunity at hand: “We came here with a purpose, and we understand our responsibilities.”