Azerbaijan proposes to approve the establishment of the Climate Finance Action Fund (CFAF) worth $1 billion during COP29, the chief negotiator for COP29 Yalchin Rafiyev said during the presentation of the COP29 Presidency Action Plan, AzVision.az reports.
According to him, CFAF will be capitalized by contributions from fossil fuel-producing countries and oil, gas, and coal companies.
"Azerbaijan will be one of the founders of this fund. Generally, by now there are already 10 shareholders in this future fund," Rafiyev noted.
CFAF will be launched after the initial round of fundraising, which aims to capitalize the fund at $1 billion, is completed and once the 10 participating countries commit themselves as shareholders.
Furthermore, CFAF will focus on climate projects in developing countries that need support, meeting the next generation of NDCs to curb warming to 1.5°C;
"It will be a public-private partnership fund mobilizing the private sector and de-risking investments in mitigation, adaptation, and research and development. The fund will also maintain special funds with concessions and grant support for rapid disaster response in developing countries in need," Rafiyev emphasized.
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