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illuminem summarizes for you the essential news of the day. Read the full piece on Financial Times or enjoy below:
🗞️ Driving the news: G7 leaders are set to call on wealthier developing nations such as China, Saudi Arabia, and India to contribute more to climate change funding after recent UN talks failed to progress on setting a new financial target
🔭 The context: UN negotiations in Bonn concluded with little advancement on a new funding deal, highlighting deep divisions
• The existing $100bn annual goal for climate finance, established over a decade ago, was only met in 2022 with reclassified loans
• The G7's proposed stance is expected to create tension with economically advanced developing countries who argue that developed nations should bear the financial burden for historical emissions
🌍 Why it matters for the planet: This call for increased contributions from wealthier developing nations is crucial for raising the necessary funds to combat climate change and support poorer nations in coping with its effects
• The push for more inclusive climate financing aims to meet the Paris Agreement's goal of limiting global warming to 1.5 degrees Celsius
⏭️ What's next: The G7 draft communique indicates a commitment to phase out coal emissions not captured by 2035, expand electricity storage six-fold by 2030, and eliminate inefficient fossil fuel subsidies by 2025
• These measures are intended to strengthen the international climate finance landscape and ensure that both developed and wealthier developing nations contribute equitably to climate action
💬 One quote: “We emphasize that the G7 countries intend to be leading contributors to a fit-for-purpose [climate finance] goal, underlining the importance of including those countries that are capable of contributing in any international public finance mobilisation,” states the G7 draft communique
📈 One number: Saudi Arabia, representing the Arab group, argued that developed countries need to provide $441bn annually in climate financing for developing countries, which could be leveraged to raise more than £1tn
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