Fierce negotiations at the COP29 UN climate summit in Azerbaijan extended into Saturday after a $250 billion annual offer from wealthy nations was flatly rejected by developing countries most affected by climate change.
Delegates from nearly 200 nations convened in a sports stadium in Baku for a sleepless night of deliberations, aiming to finalize a deal for vulnerable nations grappling with rising sea levels, harsher droughts, and worsening disasters. However, by dawn, no consensus had been reached.
Azerbaijan, the host nation, had hoped to secure a global agreement by mid-morning on Saturday, but the $250 billion proposal failed to bridge the deep divisions between developed and developing countries.
Reactions to the Proposal
The offer, which sought to raise annual climate financing for poorer nations from $100 billion to $250 billion by 2035, was dismissed as inadequate by numerous blocs. Developing nations have demanded at least $500 billion annually to transition to clean energy and bolster their resilience to climate impacts.
“It is shameful to put forward texts like these,” said Tina Stege, climate envoy for the Marshall Islands, a nation on the frontlines of rising sea levels.
Ali Mohamed, chair of the African Group of Negotiators, echoed this sentiment, calling the offer “totally unacceptable and inadequate.” The Alliance of Small Island States accused wealthy nations of showing “contempt for our vulnerable people.”
A Divided Path Forward
Experts commissioned by the United Nations previously recommended tripling the current $100 billion commitment by 2030. Brazil, which will host COP30 next year, has endorsed this figure, arguing that $300 billion annually should be the minimum contribution from developed nations.
The United States, however, signaled reluctance to negotiate beyond the $250 billion offer. A senior U.S. official described the figure as requiring “even more ambition and extraordinary reach.” Meanwhile, Germany called for innovative financial tools, including debt restructuring, to meet climate goals.
“There is no deal to come out of Baku that will not leave a bad taste in everyone’s mouth,” said Avinash Persaud, a climate advisor for the Inter-American Development Bank. Still, he suggested the talks were “within sight of a landing zone.”
Challenges from Major Players
The talks have also highlighted growing tensions between developed and emerging economies. Wealthy nations, including the U.S. and the EU, have urged countries like China—now the world’s largest emitter—to contribute more significantly to climate financing. However, China, classified as a developing nation under UN frameworks, insists on voluntary contributions.
In a separate debate, efforts to secure stronger language on phasing out coal, oil, and gas—the primary drivers of global warming—were met with resistance. A Saudi official, speaking for the Arab Group, warned against any text that specifically targets fossil fuels. Germany’s Foreign Minister Annalena Baerbock criticized Saudi Arabia for attempting to “turn back the clock.”
The Road Ahead
The draft text under consideration also includes a target to mobilize $1.3 trillion annually by 2035 from both developed countries and the private sector. However, this figure remains uncertain as negotiators struggle to align on specifics.
“We are saying no deal is better than a bad deal,” said Obed Koringo, a Kenyan activist from CARE. He described the $250 billion offer as “a joke.”
As COP29 enters its final hours, the prospects for a comprehensive agreement remain uncertain. The stakes, however, are clear: the ability of nations to meet global climate goals hinges on finding common ground in Baku.
