After the summit, wealthier nations decided to increase their initial proposal of $250 billion to help combat climate change. Nonetheless, experts argue that the proposed $300 billion is not nearly enough when considering the trillions of dollars required by poorer and vulnerable countries to fight the adverse effects of climate change. There are other funding options available, such as private capital and carbon credit trading, but these are considered insufficient by countries that are most at risk.

There is also considerable uncertainty regarding the final amount that each affluent nation will contribute, particularly with the impending presidency of Donald Trump, who has publicly stated his scepticism towards climate change. The European Union, currently the largest contributor, is expected to bear additional costs due to decreased participation from the United States.

Last week, a United Nations report outlined the expectations for this funding, estimating the necessary public finance and cash transfers needed to support climate-threatened countries and their green industries. This aligns closely with the $200 billion to $300 billion annual funding discussed privately by EU nations, as reported by POLITICO.

Before the summit, the United States and the European Union urged China and other wealthy yet developing nations to participate as donor countries. The agreement provides an avenue for these countries to voluntarily contribute to the cause, marking a potential victory for both developed and developing nations.

This article is intended to inform potential investors and those interested in climate change policies, government initiatives and the economic implications of climate change. It is not meant to persuade or influence investment decisions, but to provide accurate and updated information on the subject matter.