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.
- It 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.
