Brazil Proposes $1.3 Trillion Climate Finance Plan

Brazil has unveiled a roadmap to facilitate $1.3 trillion in annual funding for developing nations by 2035. The plan was released by Ambassador André Corrêa do Lago at the conclusion of Brazil's COP30 presidency. The goal is to address an $840 billion shortfall compared to the current flow of resources allocated for climate action.

The core strategy suggests creating a 2% minimum tax on billionaire wealth worldwide. Beyond this taxation, the document projects that two-thirds of the total amount should be raised through private investors. Multilateral banks would act as facilitators to attract this capital toward sustainable projects.

The report notes that the annual flow could reach up to $1.41 trillion if governments adopt these measures. The document emphasizes that each country would be responsible for implementing its own tax laws. There is no plan for a centralized fund to manage the resources raised globally.

Currently, most public financing occurs through development bank loans that charge interest. The Brazilian government criticizes this model because it believes it creates a reverse flow of capital from the South to the North. Only $63 billion of the current public volume consists of grants or loans with favorable conditions.