A newly released study published today by Oil Change International has shown that rich countries can mobilize over $5 trillion annually for domestic and international climate initiatives by eliminating fossil fuel subsidies, implementing pollution tariffs on major emitters and reforming inequitable global financial regulations to boost climate action funding.

The study, backed by 36 civil society organizations, emphasizes that robust finance targets are vital to unlock strong national climate plans (NDCs) by 2025, which will phase out fossil fuels.

Global protests are demanding that rich countries take responsibility for their share of climate damages and mitigations, and the study, "Road to COP29: Shifting and Unlocking Public Finance for a Fair Fossil Fuel Phase-out" outlines important steps for negotiators to secure sufficient funding for global climate action.

It also stresses the importance of a fair and funded fossil fuel phase-out, particularly for countries in the Global South struggling with overwhelming debt and cost-of-living crisis.

Global leaders are gathering at Climate Week NYC and the United Nations General Assembly, ahead of COP29, where they'll discuss a new global climate finance target (NCQG) of at least $1 trillion annually in grants and grant-equivalent finance. This target is crucial for countries to fulfill their commitment to transition away from fossil fuels, made last year.

"Grant-based and highly concessional financing, not more harmful loans, is an urgent need to fulfill the landmark COP28 decision to phase out fossil fuels, especially for adaptation, loss and damage, and key mitigation projects in the Global South," the study said.

It says that, countries should prioritize delivering a robust and accountable new global climate finance target (NCQG) and implementing well-designed fossil fuel levies to make polluters pay, rather than getting sidetracked by voluntary energy finance proposals or oil money funds that merely greenwash. This is crucial for achieving climate justice and ensuring sufficient funding for global climate action.

Following COP28's commitment to transition away from fossil fuels, the next crucial milestone is securing a new climate finance goal (NCQG) from rich countries. This agreement is vital to enable countries to submit enhanced national climate plans (NDCs) by 2025, outlining concrete steps to phase out fossil fuels and drive meaningful climate action.

Laurie van der Burg Oil Change International's Public Finance lead, Laurie van der Burg, emphasizes that rich countries must fulfill their promise to phase out fossil fuels, made last year, by taking concrete action now. He says that they have the financial capacity to support climate action globally, by ending fossil fuel subsidies, making polluters pay, and reforming unfair financial rules, rich countries can unlock trillions of dollars in climate finance.

"They owe this money to Global South countries that have not caused this crisis and need fair finance to deliver strong climate plans next year that phase out fossil fuels. This is essential to avoid climate breakdown and save lives,” Laurie emphasized.

Executive Director of Climate Action Network International, Tasneem Essop, highlights that developed countries are holding on to colonial-era practices, hindering progress in crucial climate finance negotiations as COP29 approaches.

"Let’s be clear: the Global North owes an immense climate debt to the Global South, a debt born from decades of greenhouse gas emissions for their industrialisation and that continues today at the expense of vulnerable communities in the Global South," he stated.

Tasneem notes that effective climate solutions are readily available, and resources are abundant, but surprisingly, the necessary political commitment is lacking.

"While trillions are funnelled into militarisation and fossil fuel subsidies, these funds could be redirected to build a just, sustainable future. It’s time to stop stalling. It’s time to make polluters and the wealthy pay for the harm they have caused. The world can no longer afford excuses. We need bold, transformative action—now.”

Associate Director of Policy and Campaigns at 350.org, Andreas Sieber, described the situation as a bitter irony that rich countries are hiding behind claims of fiscal restraint while still pumping trillions into fossil fuel subsidies and militarization. It's a bitter irony, indeed! The truth is simple: the money exists, but the political will does not.

Andreas’ statement shows the shocking reality that rich countries are prioritising short-term gains over long-term sustainability; by treating climate finance as a zero-sum game.

"The energy transition isn’t charity—it’s an investment in global stability and security. Ignoring the need for support only worsens the climate crisis, which knows no borders. The real question isn’t whether we can afford to act, but whether we can afford not to.”

Others like Alejandra López Carbajal at Transforma Climate Diplomacy Director, are worried developed countries are misrepresenting the climate finance negotiations by claiming scarcity of public funds when ample resources exist to tackle the climate crisis, such as redirecting socially regressive fossil fuel subsidies that exacerbate the problem.

"We are calling for a true leadership package from developed nations to agree on an ambitious NCQG that enables to possibility to keep 1.5°C in reach and drives necessary transitions and investments throughout the developing world”

Senior Attorney at the Centre for International Environmental Law, Erika Lennon, is calling out Global North polluters to take responsibility for their climate actions. She emphasizes that it's time to stop making excuses, abandon the pretense that carbon markets are climate finance, and end fossil fuel subsidies. Instead, these countries must provide the funds they owe for meaningful climate action that respects rights - or face legal repercussions.

"The money is not missing, it’s being misused. Continuing to fund fossil fuels and fossil foolery — dangerous distractions and techno-fixes that only prolong the fossil economy and perpetuate fossil fueled-climate destruction — is not just inexcusable; it’s incompatible with human rights and environmental law. At COP29 we need a climate finance goal in the trillions and follow through to deliver it."