Climate Finance Action Fund

About Climate Finance Action Fund: 

• It will be capitalised with contributions from fossil fuel producing countries and companies across oil, gas and coal, and Azerbaijan will be a founding contributor.
• It was launched within a package of 14 initiatives under the framework of the COP29 thematic days.
• It will be a catalytic public-private partnership fund, mobilising the private sector and de-risking investment.
• The fund will also contain special facilities with concessional and grant-based support to rapidly address the consequences of natural disasters in the developing countries in need.
• CFAF will become operational at the conclusion of the initial fundraising round, which seeks to capitalise the fund with $1 billion, and when 10 contributing countries committed as shareholders.
  • Fifty percent of the capital will be directed towards climate projects in developing countries that rely on support, across mitigation, adaptation, and research and development.
  • Fifty percent of the contributions will be allocated to helping meeting members’ the next generation of Nationally Determined Contributions (NDCs) to keep the 1.5C temperature target within reach.
• Twenty percent of the revenues generated from investments will be deposited in a Rapid Response Funding Facility (2R2F) providing highly concessional and grant-based support.

The fund will be headquartered with its secretariat in Baku, Azerbaijan

Q1: What is the United Nations Framework Convention on Climate Change (UNFCCC)?

The United Nations Framework Convention on Climate Change (UNFCCC) is a treaty that establishes the legal framework for international cooperation on climate change. The UNFCCC's goal is to stabilize greenhouse gas concentrations in the atmosphere to prevent dangerous human interference with the climate system.

Source: UN COP29 Azerbaijan: Will the new Climate Finance Action Fund (CFAF) help developing countries?