By Faridat Salifu
Developed countries have agreed to a revised proposal to provide $300 billion annually to assist poorer nations in addressing the impacts of climate change, according to a draft decision from the COP29 climate talks in Baku, Azerbaijan.
The updated target, revealed early Sunday, comes after an earlier proposal of $250 billion was deemed insufficient by developing nations.
The document, seen as a potential breakthrough, outlines a goal of mobilizing “at least $300 billion per year by 2035 for developing country Parties for climate action.”
It remains subject to adoption by consensus to become final.
The two-week COP29 summit, originally scheduled to conclude on Friday, has been extended as nearly 200 nations wrestle with the complex issue of climate finance.
Reuters reported that the European Union, the United States, and other developed countries backed the $300 billion figure to overcome a deadlock.
The negotiations highlighted the enduring debate over financial responsibilities between industrialized nations, whose historical reliance on fossil fuels has driven much of global greenhouse gas emissions, and developing countries bearing the brunt of worsening climate-related disasters.
Tensions flared earlier in the summit when representatives from small island states and poorer nations walked out, citing exclusion from key discussions and concerns over attempts by fossil fuel producers to dilute the agreement.
Despite these challenges, Fiji’s Deputy Prime Minister Biman Prasad expressed optimism for a resolution. Speaking to Reuters, he said, “When it comes to money, it’s always controversial, but we are expecting a deal tonight.”
The proposed $300 billion annual target would replace the existing $100 billion commitment made by wealthy nations, a goal that was met two years late in 2022 and is set to expire in 2025.
The previous $250 billion proposal, introduced by Azerbaijan’s COP29 presidency, was rejected as inadequate by poorer nations. They argued that such a weak commitment would undermine efforts to set more ambitious greenhouse gas reduction targets.
Additionally, negotiators agreed on rules for a global carbon credit market, which supporters believe could channel billions into climate mitigation projects.
Expanding the Circle of Contributors
A central issue in the talks remains the definition of “developed nations” required to contribute to climate finance. The list, established during the 1992 U.N. climate negotiations, includes about two dozen industrialized nations such as the U.S., Canada, and European countries.
European governments have urged wealthy non-contributors like China, the world’s second-largest economy, and oil-rich Gulf states to join the effort.
Uncertainty also looms over the United States’ long-term commitment to climate finance, particularly following Donald Trump’s recent presidential election victory. Trump, who is set to take office in January, has pledged to withdraw the U.S. from international climate agreements, raising doubts about future American contributions.
Broader Financing Goals
The draft deal also includes a more ambitious overall target of raising $1.3 trillion annually from all public and private sources by 2035. Economists argue that this figure aligns with the financial scale required to combat climate change effectively.
This latest push for consensus at COP29 underscores the high stakes of climate negotiations, where balancing financial obligations with global climate objectives remains a daunting challenge.
Source: Reuters