Financing The Future: Vera Songwe’s Vision For A Climate And Growth Agenda At COP29

Distinguished economist and finance expert Vera Songwe is a globally leading voice on sustainable development, climate finance, and economic growth in emerging markets. With a wealth of experience, including as Under-Secretary-General of the UN and Executive Secretary of the UN Economic Commission for Africa, Songwe has been instrumental in shaping discussions on Africa’s economic future, and the global climate finance agenda at large.

As co-chair of the International High-Level Expert Group (IHLEG) on climate finance, Songwe advocates for strategies to mobilize public and private financing for climate action. Recently, she co-authored ‘A Climate Finance Framework: Decisive Action to Deliver the Paris Agreement’ with Nicholas Stern and Amar Bhattacharya, calling for a dramatic increase in climate financing to support sustainable development and green industrialization in low-income countries.

Songwe discusses the role of climate finance, green industrialization, and the need for global cooperation to combat the climate crisis. Her vision reflects a unified effort to fund a sustainable, equitable global economy that aligns with urgent climate and nature goals.

COP 29 is known as ‘The finance COP’, what does that signify to you?

We need leaders to come to the table ready to commit the climate finance needed to address the climate crisis and drive sustainable growth.

The Climate Finance Framework report that I co-chaired explains that we need USD 2.4 trillion in financing—USD 1 trillion in external financing excluding China and USD 1.4 trillion in domestic funding annually —by 2030 to support a just energy transition, climate adaptation, and nature protection in emerging economies (excluding China).

The only way to raise this amount of finance is to stimulate domestic growth in low-income countries - by mobilizing domestic resources, creating jobs, and accelerating green industrialization. This vision for green industrialization was endorsed by African leaders at the first Africa Climate Summit last year, and it continued under the COP 28 Presidency.

At COP 29, leaders have a critical task: to bring green industrialization into clear, sharp focus - defining how it can drive inclusive economic growth worldwide. Right now, we have the broad outlines, but the vision remains blurry and mostly benefits the advanced economies. By agreeing on a shared blueprint for green industrialization, we can create a clear, actionable framework that benefits all countries.

What outcomes do you hope COP 29 delivers?

Firstly, the COP must fully fund the loss and damage (L&D) fund created at COP 27 in Egypt. While initial resources were committed at COP 28 in Dubai, and the World Bank has now established the fund’s institutional framework, must ensure it is fully financed to meet its mandate. Securing this would be a major milestone.

Secondly, I hope COP 29 significantly advances the Global Climate Finance Framework, endorsed as the UAE consensus, that was launched last year to make climate finance accessible and impactful, especially for developing nations. The Framework’s 10-point agenda outlines practical steps to mobilize various financing sources—from crowding in private sector funds with credit enhancements from Multilateral Development Banks (MDBs) and global philanthropy, to loss and damage financing, and biodiversity protection.

Thirdly, COP 29 should strengthen the global commitment to move away from fossil fuels. In 2022, fossil fuel subsidies reached an astonishing USD 7 trillion, or USD 13 million per minute, according to the IMF—far outpacing the USD 2.4 trillion needed annually to meet global climate goals. Redirecting even half of fossil fuel subsidies to climate finance would yield USD 3.5 trillion, greatly exceeding the financing pledged currently.

Lastly, COP 29 should confirm what robust transition plans should look like. This is key to determining which transition plans get funded. Whether it’s an African country needing external support or a Gulf nation deploying own resources to manage its transition - clear, well-defined plans are essential. Transitioning involves more than merely halting production; it requires phasing down brown fuels through optimization before closure.

How can COP 29 catalyse carbon markets?

A clear space to raise finance for low-income countries is carbon markets, so we need the COP conversations to drive progress on Article 6 of the Paris Agreement, to unlock that potential. If structured effectively and transparently, carbon markets can drive a huge part of the revenue needed for green development and climate finance in places like Africa.

To raise integrity, we need to shift from voluntary to compliance-based carbon markets; establishing mandatory rules and standards for measuring, reporting, and verifying emissions reductions. This would reduce risks of greenwashing or inaccurate reporting, helping to ensure that carbon credits genuinely represent measurable emissions reductions, turning them into reliable financial assets.

We also need interoperability so that carbon credits can be priced and traded consistently across regions. Currently, many carbon markets are region-specific: two carbon credits from different regions might be priced differently, not because one is inherently more effective in reducing emissions, but because of regional factors like local demand or market rules. Standardizing carbon credits to reflect the true asset or commodity value, would streamline pricing, making credits more comparable and tradable across global markets. This would allow investors to transparently assess carbon credits - ultimately boosting trust in the carbon market.

How can the New Collective Quantified Climate Goals (NCQG) unlock stronger action?

One of the key stories of COP 29 will be governance of the New Collective Quantified Climate Goals (NCQG), a new global climate finance goal that leaders shall set from a floor of USD 100 billion per year, prior to 2025. It is crucial that we make significant progress on the NCQGs, as they will underpin many countries' mitigation and adaptation strategies. Given 80% of emissions come from just 20% of countries, we hope G20 nations will arrive in Baku, firstly, ready to clarify their own paths to net zero, and secondly to outline a framework to support global efforts in a credible and sustainable manner.

The full interview with Vera Songwe can be found here> https://climatechampions.unfccc.int/climate-finance-vera-songwe-cop-29/

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