After marathon negotiations that stretched into Sunday morning, world leaders at the UN climate talks (COP29) in Baku, Azerbaijan, reached a historic agreement committing rich countries to provide $300 billion per year to help developing countries fight climate change by 2035.
The final figure represents a significant increase over Friday’s controversial $250 billion draft proposal, although it is still well short of the $1.3 trillion that experts say is needed to adequately address the global climate crisis.
The deal was the result of tense talks that dragged on two days after the summit’s planned conclusion, highlighting deep divisions between rich and developing countries over climate finance.
The drastic change from Friday’s plan came after intense criticism from climate-vulnerable countries and advocacy groups. Mohamed Adow of Power Shift Africa called the initial proposal a “slap in the face”, saying “no developing country will fall for this”. Marshall Islands climate envoy Tina Stege called the proposal a “disgrace” in light of the billions in damages caused by extreme weather and the urgent need for a transition away from fossil fuels.
The new framework calls for coordination between public and private sources of financing to potentially reach the annual target of $1.3 trillion by 2035. This ambitious target would require substantial participation from international development banks and sector investors private sector to fill the considerable financing gap.
Critics argue that much of the funding could come in the form of loans rather than grants, which could add to the debt burden of countries already struggling with economic instability. Vaibhav Chaturvedi of the Energy, Environment and Water Council of India noted that the initial $250 billion proposal essentially represented the old target of $100 billion per year with annual inflation of 6 percent.
The funds will support various climate initiatives, including the development of clean energy infrastructure, extreme weather adaptation measures, and disaster preparedness programs. This involves funding the transition from fossil fuels to renewable energy sources like wind and solar, as well as helping communities build more resilient housing and agricultural systems.
Recent events highlight the urgency of climate finance. The Philippines has been devastated by six major storms in less than a month, causing catastrophic damage to homes, infrastructure and farmland. Such extreme weather events particularly affect small-scale farmers, who often lose both their immediate harvests and long-term production assets like fruit trees and livestock.
Rich countries have approached the negotiations cautiously. Swiss Environment Minister Albert Rösti warned that “an agreement involving a high amount, which will never be realistic, which will never be paid […] will be much worse than disagree. U.S. officials emphasized that “this was significant progress over the past decade toward meeting the earlier, smaller goal.” »
The new climate finance deal builds on the framework of the 2015 Paris Agreement, which aims to limit global warming to 1.5 degrees Celsius above pre-industrial levels. With current warming at 1.3 degrees Celsius and rising emissions, the success of this financial commitment could prove crucial to achieving more ambitious climate goals in the years to come.
This article includes reporting from the Associated Press
