"BRUSSELS - Azerbaijan, host of this year's U.N. COP29 climate summit, has scrapped plans to propose a levy on fossil-fuel producers to raise climate-change funding, and instead aims to launch a new fund at the summit for green investments in poorer countries, a senior COP29 source said.

Speaking on condition of anonymity, the source said Azerbaijan had initially conceived the idea of a levy on fossil-fuel production to raise funds for tackling climate change, but that this had faced resistance from some countries.

"We had several rounds of engagements with the parties concerned - with the other potential contributors - and we needed to adjust the fund idea to make it also attractive for potential contributors," the source said.

"Azerbaijan will be one of the main contributors of this fund," they said, adding that the fund would also seek voluntary contributions from other fossil fuel-producing countries.

Other sources familiar with the discussions told Reuters oil and gas-producing Gulf countries had opposed the initial idea of a levy."

Kate Abnett reports for Reuters July 10, 2024. [2]