BAKU, AZERBAIJAN — The United Nations climate summit, known as COP29, has been making headlines as wealthy countries have raised their offer of climate finance to $300 billion a year. This increase in funding has raised hopes of a deal with developing nations who had previously dismissed an earlier proposal as insufficient to address the impacts of global warming.
The summit, which was originally scheduled to finish on Friday, ran into an extra day as negotiators from nearly 200 countries worked to reach an agreement on the contentious funding plan for the next decade. The heart of the global debate over the financial responsibility of rich industrialized countries was brought to the forefront, as their historical use of fossil fuels has caused the bulk of greenhouse gas emissions. The question of how to compensate for the damage wrought by climate change has been a major point of contention.
Negotiators from several developing countries and island nations expressed frustration over what they saw as a U.N. process that was not rising to the challenge of global warming. In fact, they temporarily walked out of talks on Saturday afternoon. However, there is hope that they will ultimately accept the proposed figure of $300 billion a year by 2035.
Fiji’s Deputy Prime Minister Biman Prasad remains optimistic, stating, “When it comes to money, it’s always controversial, but we are expecting a deal tonight.” COP29 President Mukhtar Babayev also urged country delegations to overcome their differences and work towards a solution, saying, “I ask you to now step up your engagement with one another to bridge the remaining divide,” in a plenary speech.
Developing countries had previously dismissed a proposal drafted by the Azerbaijan host on Friday, which would have seen the United States, Europe, and other developed countries lead $250 billion in annual funding. This previous proposal was deemed insufficient, and past failures to meet climate finance obligations have made developing countries mistrustful of new promises.
However, there is hope for progress as five sources with knowledge of the closed-door discussions have revealed that the EU has agreed to accept the higher number of $300 billion a year. Two of the sources also stated that the United States, Australia, and Britain are on board with this figure. A European Commission spokesperson and an Australian government spokesperson declined to comment on the negotiations, while the U.S. delegation and the UK energy ministry did not immediately respond to requests for comment.
The new goal of $300 billion a year is intended to replace developed countries’ previous commitment to provide $100 billion in climate finance for poorer nations per year by 2020. This goal was met two years late, in 2022, and is set to expire in 2025. This increase in funding is a positive step towards addressing the urgent need for financial support in developing countries.
Representatives from the least developed countries and small island nations blocs walked out of a negotiating room in frustration at one point on Saturday afternoon. However, they have stated that they remain committed to finding a deal. “We want nothing more than to continue to engage, but the process must be inclusive,” the Alliance of Small Island States said in a statement.
In a sign of progress, countries agreed on Saturday evening on rules for a global market to buy and sell carbon credits. This market is expected to mobilize billions of dollars into new projects to help fight global warming.
Brazil’s Minister of the Environment and Climate Change, Marina Silva, has stated that her country is pushing for $390 billion annually from developed countries by 2035. She emphasized the urgency of the situation, saying, “After the difficult experience that we’re having here in Baku, we need to reach some result, some outcome which is minimally acceptable in line with the emergency we are facing,” in a speech to the summit.
Negotiators have been working throughout the two-week summit to address critical questions on the finance target, including who is asked to contribute and how much of the funding is on a grant basis, rather than provided as loans. The roster of countries required to contribute dates back to a list decided during U.N. climate talks in 1992 and includes about two dozen industrialized countries, including the U.S., European nations, and Canada. European governments have demanded that others join them in paying in, including China and oil-rich Gulf states.
The recent U.S. presidential election has cast a cloud over the Baku talks, with President-elect Donald Trump promising to remove the U.S.
