Azerbaijan, the host of this year's UN climate talks, has shelved a planned levy on fossil fuel production and instead launched a fund to "invest" in climate action in developing countries.
Reports suggest that Azerbaijan, which relies heavily on oil and gas revenues, faced resistance from some oil- and gas-producing Gulf countries regarding the planned levy announced in May.
The new fund, the "Climate Finance Action Fund" (CFAF), will receive annual contributions from fossil fuel-producing countries and companies. Initial fundraising aims for USD 1 billion, with members committing to annual contributions as fixed sums or based on production volume, according to a statement.
Based in the capital city of Baku, the fund will target climate projects in developing countries, meeting the next generation of national climate plans to limit global warming to 1.5 degrees Celsius, and addressing the consequences of climate change-fuelled disasters.
Financial support to help middle-income and
