View from the Inside: Climate finance and the path to COP29 success

As the world turns its attention to COP29 in Azerbaijan, we sat down with Katherine Cooke, our Principal Consultant specialising in international climate finance, renewable energy, and monitoring & evaluation, to understand the critical financial mechanisms that could make or break climate action commitments.

What are the key expectations for climate finance at COP29 and beyond?

This COP is fundamentally about finance, with the primary focus being the definition of a new collective quantified goal (NCQG) to replace the current $100 billion per year target established under the Paris Agreement. The quantum floor for this new target, effective from 2025, is expected to be around one trillion dollars annually. Additionally, we anticipate crucial guidance on operationalising the new Loss and Damage Fund, which will be hosted by the Philippines, including defining eligibility criteria.

The stakes are incredibly high. A well-defined NCQG would send strong signals to financial markets, provide greater certainty for long-term planning, and create momentum for collective action while ensuring accountability. The cost of action is less than the cost of inaction.

How is OPM engaging with climate funds and supporting climate action?

Our work spans multiple dimensions of climate finance, policy and across multilateral funds.  We're currently undertaking an evaluation of the Adaptation Fund Readiness Programme, which we'll be presenting at COP29. Our climate policy and finance team works directly with the Green Climate Fund (GCF) on their readiness initiatives and provides training for direct access entities. 

We're also deeply involved in supporting countries with their Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs) - the cornerstone documents that outline each nation's climate commitments and adaptation strategies. This work is crucial for ensuring that climate finance flows align with national priorities and development needs.

At COP, I'll be part of the Fiji delegation, drawing from my experience as their former national Climate Finance advisor. Small island developing states are absolutely critical in these discussions - they're facing some of the worst impacts of climate change despite having contributed minimal emissions.

At COP29, the priority must be advancing action on the 1.5°C target, implementing Global Stocktake outcomes (particularly regarding energy transition packages), and strengthening adaptation action to help small island states build resilience and develop sustainable blue economies. This includes ensuring that NDCs and NAPs are adequately funded and implemented, creating a crucial bridge between national climate ambitions and concrete action on the ground.

What are the key challenges in mobilising climate finance?

One of the persistent challenges is bridging the gap between public and private finance sources. While private sector engagement in mitigation projects is relatively straightforward due to clear returns on investment, attracting private finance for adaptation remains difficult. We've recently completed innovative research on scaling private investment in adaptation, providing case studies and recommendations for funders.

We're also exploring new frontiers through our work with the Foreign, Commonwealth & Development Office (FCDO) and Food and Agriculture Organization (FAO), examining innovative climate financing instruments for social protection sectors. This research, due for release in early 2025, will provide valuable insights into funding mechanisms that could support the new Loss and Damage Fund.

What specific actions are needed to improve climate finance accessibility?

We need to see greater harmonisation between funds. Access modalities tend to be cumbersome and difficult, and we're not seeing finance flowing to the Least Developed Countries (LDCs) and Small Island Developing States (SIDS) at the necessary rate and pace.

More refined access modalities, shorter timeframes, and expedited financing processes are essential. Crucially, we need to see more direct access entities within LDCs and SIDS themselves, along with greater fund harmonisation to address capacity constraints in accessing finance.

What else needs to be at the forefront of discussions during and following COP29? 

Gender responsiveness is a huge issue that needs to be front and centre of all discussions – and not just the issue, but how to effectively address it. Gender inequalities mean that women and other minority groups often bear the brunt of climate-related disasters, while simultaneously having less access to resources and decision-making power, making them more vulnerable to the effects of climate change. Gender-blind climate policies fail to address these disparities, at best perpetuating existing inequalities and at worst, exacerbating them while preventing adaptation and mitigation initiatives from being effective. 

There’s a pressing need to integrate a gender perspective throughout the entire climate policy cycle. Few would argue with this but the way forward still isn’t entirely clear. So it’s crucial that COP29 provides the space for discussing action.  For example, by addressing the challenges and opportunities women face in attaining leadership roles within energy industries, we can begin to design policies and initiatives that actively promote involvement in the energy transition. This is just one example. 

Climate and Disaster Risk Finance and Insurance (CDRFI) is another area that urgently needs to be looked at through a gender lens – and something that I’ve been speaking extensively on during the conference here. We know that without prioritising gender considerations, CDRFI mechanisms cannot effectively, inclusively, and equitably reach their intended beneficiaries. That’s why we’re working with The Global Shield against Climate Risks – a joint initiative by the G7 and the Vulnerable 20 (V20) group which aims to strengthen the financial protection and resilience of vulnerable countries and people through CDRFI – conducting gender analyses, the findings of which will help provide critical information on the gender-sensitivity and responsiveness of national strategies.

After all, it’s only by taking a more gender-responsive approach to all aspects of climate action we can begin to build more resilient communities and ensure that everyone benefits.

About the author:

Katherine Cooke is a Principal Consultant with over 17 years of experience in international climate change policy and finance.  Specialising in climate resilience, adaptation planning & evaluation for vulnerable communities, Monitoring and Evaluation, and access to multilateral climate funds in the Asia Pacific region, she has deep practical expertise in developing and reviewing Country NDCs and NDC financing plans.