As we approach COP29, hosted in Baku, Azerbaijan, the discussions around climate finance and carbon removal are central to addressing global climate injustice. At this pivotal moment, it’s essential to spotlight how the Global South bears the brunt of climate change impacts while housing some of the most vulnerable climate refugee communities. At its core, the injustice is clear; wealthier nations, historically responsible for the majority of emissions, must assume greater responsibility for financing climate solutions. This encompasses both mitigation, to curb further warming, and adaptation, to help vulnerable communities withstand the increasingly devastating effects of climate change.

The stakes for vulnerable communities

The climate crisis disproportionately impacts marginalised populations, including people living in poverty, Indigenous communities, and people of colour. Additionally, groups facing intersecting vulnerabilities, such as women, children, and people with disabilities, are at heightened risk.

The Intergovernmental Panel on Climate Change (IPCC) reports that 3.5 billion people are already living in highly vulnerable situations due to climate change. By 2050, this number is expected to rise as extreme weather events and rising sea levels render parts of the world uninhabitable. Coastal cities like Jakarta and Dhaka are already facing existential threats from these challenges.

In the fight against climate change, it’s crucial to centre both people and the planet. Community-driven carbon removal projects, such as afforestation, offer a dual benefit—capturing carbon whilst fostering local economic growth. Last year’s COP28 Declaration on Climate, Relief, Recovery, and Peace underscored the urgency of accelerating humanitarian aid by explicitly recognising the factors affecting high-vulnerability communities most impacted by climate change.

However, a key challenge persists: how can we ensure that climate finance reaches those who need it most, and how do we make this flow of funds equitable and just?

The complexities of carbon finance

The flow of carbon finance is not simply a matter of allocating funds to marginalised communities. At COP29, a critical focus must be on ensuring that commitments to carbon finance translate into tangible, on-the-ground impact. So far, progress has been limited, with ongoing disagreements over who should pay, how much, and in what form—loans, grants, or other mechanisms. Additionally, there is continued debate on whether funds should prioritise mitigation, adaptation, or compensation for loss and damage already experienced.

The underlying issue lies in global economic structures that prioritise unending growth, contributing to environmental degradation and climate change. One increasingly popular solution is leveraging carbon markets—and particularly carbon removal—as a means of financing climate action in developing countries.

Carbon removal as a solution to climate injustice

Carbon markets have significant potential, but addressing questions around fairness remains crucial. As carbon credits are sold, it is often Global South nations that provide the offset potential. Carbon removal presents an opportunity to direct investments to these regions most vulnerable to climate impacts. Projects like reforestation, afforestation, and biochar, implemented with local community involvement, ensure that a substantial portion of the funds flows directly back into these emerging markets. Indigenous peoples, who protect 80% of the world’s biodiversity, must be integral to this process.

By prioritising investment in "high-impact" carbon credits which offer co-benefits like enhanced biodiversity, improved water quality, and social uplift, and which align with many of the UN's Sustainable Development Goals (SDGs), we can generate projects that directly benefit marginalised communities.

There are also new carbon removal and climate impact players emerging to accelerate the flow of finance and dismantle barriers to funding on-the-ground carbon projects. Terraspect, for instance, helps project developers and carbon removal buyers manage community payments with full traceability worldwide. At Opna, we are also committed to unlocking capital from the Global North to support high-quality carbon projects in the Global South, addressing climate change with speed, scale, and equity.

The path forward at COP29

While Azerbaijan’s presidency has committed to aligning COP29 with the goals of the Paris Agreement, its hesitance to push for a transition away from fossil fuels reflects a broader global reluctance to fully commit to climate justice. Without decisive action to phase out fossil fuels, achieving the goal of limiting temperature rise to below 1.5°C remains an uphill battle.

Nevertheless, COP29 can be a turning point. Ensuring that climate and carbon finance reaches our most vulnerable populations at scale is not an impossible task. Carbon removal will continue to be a crucial mechanism for channelling climate finance into countries and communities most affected by climate change. This approach not only advances climate justice but also builds resilience in the face of future challenges.