After marathon negotiations that stretched into early Sunday morning, world leaders at the UN climate talks (COP29) in Baku, Azerbaijan, reached a landmark agreement committing wealthy nations to provide $300 billion annually to help developing countries combat climate change by 2035.
The final figure represents a significant increase from Friday’s contentious draft proposal of $250 billion, though it still falls well short of the $1.3 trillion that experts estimate is needed to adequately address the global climate crisis.
The agreement emerged from tense discussions that extended two days beyond the summit’s scheduled conclusion, highlighting the deep divisions between wealthy and developing nations over climate finance.
The dramatic shift from Friday’s draft came after intense criticism from climate-vulnerable countries and advocacy groups. Mohamed Adow of Power Shift Africa had called the initial proposal “a slap in the face,” stating “No developing country will fall for this.” The Marshall Islands’ climate envoy Tina Stege described the proposal as a “disgrace” in light of the billions in damages caused by extreme weather and the urgent need for fossil fuel transitions.
The new framework calls for coordination between public and private funding sources to potentially reach the $1.3 trillion annual target by 2035. This ambitious goal would require substantial participation from international development banks and private sector investors to bridge the considerable funding gap.
Critics argue that much of the funding may come in the form of loans rather than grants, potentially adding to the debt burdens of nations already grappling with economic instability. Vaibhav Chaturvedi of India’s Council on Energy, Environment and Water noted that the initial $250 billion proposal essentially represented the older $100 billion per year goal with 6 percent annual inflation.
The funds will support various climate initiatives, including clean energy infrastructure development, extreme weather adaptation measures, and disaster preparedness programs. This includes financing the transition from fossil fuels to renewable energy sources like wind and solar power, as well as helping communities build more resilient housing and agricultural systems.
Recent events underscore the urgency of climate financing. The Philippines has been devastated by six major storms in less than a month, causing catastrophic damage to residences, infrastructure, and farmland. Such extreme weather events particularly impact small-scale farmers, who often lose both immediate crops and long-term productive assets like fruit trees and livestock.
Wealthy nations have approached the negotiations with caution. Switzerland’s Environment Minister Albert Rösti warned that “a deal with a high number that will never be realistic, that will never be paid […] will be much worse than no deal.” U.S. officials emphasized that “it has been a significant lift over the past decade to meet the prior, smaller goal.”
The new climate finance agreement builds on the 2015 Paris accord’s framework, 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 for achieving more ambitious climate targets in the coming years.
This article includes reporting from The Associated Press
