Baku at COP29 demands $1 billion contribution from oil and gas sectors for environmental initiatives's funding.

New international fund proposed for fossil-fuel producing nations and companies to aid developing countries in coping with the climate crisis's effects. The Azerbaijan government is spearheading this initiative ahead of Cop29, a UN climate summit set for November.

The Climate Finance Action Fund will solicit contributions from fossil-fuel nations and corporations to invest in greenhouse gas reduction projects and weather resilience efforts across developing countries. Yalchin Rafiyev, the chief negotiator for Cop29's presidency, stated that "Traditional funding methods have proven insufficient against climate challenges, hence we are exploring a different approach." The fund will be supported by voluntary contributions from fossil-fuel entities and is expected to catalyze private sector investments.

However, the fund's reliance on voluntary donations without an enforcement mechanism raises concerns about accountability for those most responsible for greenhouse gas emissions. Bronwen Tucker of Oil Change International expressed disappointment in what she perceived as a distraction from essential climate finance goals and plans needed at Cop29 to ensure a just transition away from fossil fuels.

The announcement signifies the first attempt within UN climate negotiations to link fossil fuel producers with their responsibility towards developing nations grappling with climate impacts. Harjeet Singh of the Fossil Fuel Non-Proliferation Treaty Initiative called for accountability from the fossil fuel industry, stating that contributions must not justify further extraction activities.

Azerbainas' proposed fund requires at least $1 billion in voluntary pledges from ten countries and major corporations to kickstart operations. The governing board of this Climate Finance Action Fund will be composed of representatives from contributors, independent of existing multilateral development banks like the World Bank.

Bob Ward, a policy director at the Grantham Research Institute on Climate Change and the Environment, cautioned against the potential for "climate-washing" if this fund is used as an excuse to delay phasing out fossil fuels. Azerbaijan's presidency over Cop29 also saw it pushing for a peaceful summit while facing criticism over its handling of domestic climate resilience issues, including the impact on Grenada from Hurricane Beryl.

The UN climate chief emphasized that the Cop29 process remains critical in addressing global warming and building climate-resilient societies. Azerbaijan's presidency includes calls for stronger emissions reduction commitments, particularly as it prepares to host one of the most significant international discussions on tackling the climate crisis.