COP29 Draft Suggests Wealthy Nations Contribute $250 Billion Annually for Climate Finance

A fresh draft of an international climate agreement unveiled at COP29 in Azerbaijan suggests that developed nations should allocate $250 billion each year by 2035 to assist less affluent countries in combating global warming.

This marks the first instance where a specific monetary figure has been officially proposed during UN climate discussions in Baku, coinciding with the concluding day of a summit characterized by financial disagreements.

The document aims for an ambitious overall goal of generating a total of $1.3 trillion annually by 2035, with funding from affluent governments forming the backbone of financing that would be complemented by investments from the private sector.

Nearly 200 nations present at COP29 faced challenges in reaching a consensus on a new target that enhanced support for developing countries to reduce emissions and adapt to climate-related changes.

A powerful negotiation coalition of 134 developing nations, including China, has called for at least five times that amount from developed countries.

Key contributors such as the European Union have asserted that such demands are politically unrealistic, emphasizing the necessity for substantial private sector involvement.

The EU has resisted external pressure to present its own funding figure and advocates for newly affluent emerging economies like China, the largest emitter globally, to contribute to the overarching target.

Several nations have also urged at COP29 for a renewed commitment to reducing greenhouse gas emissions, a stance opposed by the Arab Group of nations, which objects to singling out fossil fuels.