At the COP29 summit held in Azerbaijan, countries reached a $300 billion (€288bn) annual global finance target to assist poorer nations in dealing with the impacts of climate change. However, this deal was criticized by its intended beneficiaries for being grossly inadequate.
Finalized in overtime at the two-week conference in Baku, the agreement aimed to energize international efforts to combat global warming during a year expected to be the warmest on record.
While some delegates applauded the deal with a standing ovation in the COP29 plenary hall, others condemned wealthier nations for their insufficient actions and criticized Azerbaijan for quickly pushing through the contentious agreement.
“I regret to say that this document is nothing more than an optical illusion,” stated Indian delegation representative Chandni Raina during the closing session shortly after the deal was approved.
Delegates applaud in the plenary hall when it was announced that an agreement had been struck
Simon Stiell, the United Nations climate chief, acknowledged the challenging negotiations that culminated in the agreement, referring to it as an insurance policy for humanity against global warming.
“It has been a difficult journey, but we’ve delivered a deal,” Mr. Stiell remarked. “This deal will sustain the clean energy boom and safeguard billions of lives.”
“However, like any insurance policy, it requires timely and full premium payments,” he added.
The agreement promises $300 billion annually by 2035, enhancing rich countries’ earlier commitment of providing $100 billion per year in climate finance by 2020.
This earlier target was achieved two years late, in 2022, and will expire in 2025.
Additionally, the deal lays the foundation for next year’s climate summit in the Amazon rainforest of Brazil, where countries will outline their climate action plans for the next decade.
Activists protested for climate finance grants for developing countries at the conference in Baku
For the first time, funding took center stage in a COP agenda.
The summit centralised the debate on the financial responsibilities of developed nations—who are historically responsible for the majority of greenhouse gas emissions due to their reliance on fossil fuels—to support other countries facing escalating climate change repercussions.
This revealed a rift between wealthy governments facing tight domestic budgets and developing nations grappling with the impacts of storms, floods, and droughts.
Negotiations were initially set to conclude on Friday but extended as representatives from nearly 200 countries struggled to find a consensus.
Some developing nations and island states expressed their frustration during negotiations and walked out yesterday.
“We are departing with only a small portion of the funding that climate-vulnerable countries desperately need. It falls far short, but it’s a starting point,” commented Tina Stege, the climate envoy for the Marshall Islands.
Nations have been pursuing financing to fulfill the Paris Agreement’s objective of limiting global temperature increases to 1.5 degrees Celsius above pre-industrial levels—beyond which catastrophic climate changes could take place.
Some developing nations walked away from the talks citing frustration with negotiations
Current projections indicate the world is on track for a warming of up to 3.1 degrees Celsius by the end of this century, as outlined in the 2024 UN Emissions Gap report, with global greenhouse gas emissions and fossil fuel consumption continuing to rise.
The deal did not specify detailed actions for how countries would follow through on last year’s UN climate summit commitment to transition away from fossil fuels and triple renewable energy capacity this decade. Some negotiators indicated that Saudi Arabia attempted to obstruct such a plan during discussions.
“There’s certainly a hurdle in achieving greater ambition when negotiating with the Saudis,” remarked US climate adviser John Podesta.
A Saudi official did not provide an immediate comment.
Criteria for what constitutes a developed nation?
The list of countries obligated to contribute—approximately two dozen industrialised nations, including the US, various European countries, and Canada—stems from a resolution made during UN climate talks in 1992.
European governments have urged additional contributors, including China—the world’s second-largest economy—and wealthy Gulf states. The deal encourages developing nations to contribute but does not mandate it.
The agreement also sets a broader target of generating $1.3 trillion (€1.3tn) in climate finance annually by 2035—incorporating funding from all public and private sources—an amount that economists indicate is necessary to address global warming.
Furthermore, countries have established regulations for a global market for buying and selling carbon credits, which proponents believe could attract billions of dollars into new projects aimed at combating global warming, such as reforestation and the deployment of clean energy technologies.
Securing the climate finance deal has proven to be a significant challenge from the outset.
The recent victory of Donald Trump in the US presidential election has led some negotiators to question whether the world’s largest economy would contribute to any climate finance goals established in Baku.
Torrential rain triggered floods in Spain last month that left more than 200 dead
Mr. Trump has previously labelled climate change as a hoax and pledged to withdraw the US from international climate cooperation once again.
In contrast, President Joe Biden congratulated the participants at COP29 for achieving what he termed a historic agreement that would aid in mobilizing necessary funds, but he emphasized that more work lies ahead.
“Despite the substantial work that remains to be done to meet our climate objectives, today’s outcome brings us one step closer,” Mr. Biden stated.
“On behalf of the American populations and future generations, we must continue to expedite our efforts to preserve a cleaner, safer, and healthier planet,” he added.
Western governments have seen global warming diminish in national priorities, given the heightened geopolitical tensions stemming from Russia’s war in Ukraine, ongoing conflicts in the Middle East, and rising inflation.
The clash over financing for developing nations occurs in a year scientists predict will be the hottest on record.
Climate disasters are accumulating, leading to severe flooding that has claimed thousands of lives across Africa, deadly landslides burying entire villages in Asia, and drought conditions in South America depleting rivers.
Developed nations are also facing similar challenges.
Torrential rains recently caused widespread flooding in Valencia, Spain, resulting in over 200 fatalities, and the US has experienced 24 billion-dollar disasters this year—just four fewer than in the previous year.
