After two weeks of intense negotiations and sleepless nights, nearly 200 nations finalized a contentious $300 billion-a-year climate finance pact on Sunday at COP29 in Azerbaijan. The agreement, reached in a packed sports stadium in Baku, aimed to address long-standing disputes over how much wealthy nations should contribute to help poorer countries combat the effects of climate change.
However, the deal faced immediate backlash, with developing nations dismissing the pledged amount as woefully inadequate.
“This amount is abysmally poor—a paltry sum,” said Chandni Raina, India’s representative, moments after the agreement was announced. “This document is little more than an optical illusion. It will not address the enormity of the challenge we all face.”
Fractious Negotiations
Diplomats struggled to bridge the gap between wealthier nations, historically responsible for most greenhouse gas emissions, and developing countries, which bear the brunt of climate impacts. The final deal commits developed nations to providing $300 billion annually by 2035, a significant increase from the existing $100 billion pledge.
Despite the increase, the amount falls short of the $500 billion demanded by a coalition of 134 developing nations to build climate resilience and cut emissions.
“This COP has been a disaster for the developing world,” said Mohamed Adow, director of Power Shift Africa. “It’s a betrayal of both people and the planet by wealthy countries who claim to take climate change seriously.”
At various points, the talks appeared on the verge of collapse, with developing nations walking out of meetings and threatening to abandon negotiations unless wealthier nations offered more funding. However, they ultimately accepted the deal, despite acknowledging it fell short of their expectations.
A Mixed Outcome
COP29 President Mukhtar Babayev described the agreement as a hard-fought compromise. EU climate envoy Wopke Hoekstra echoed this sentiment, calling it “the start of a new era for climate finance.”
UN climate chief Simon Stiell tempered expectations, saying: “No country got everything they wanted, and we leave Baku with a mountain of work still to do. This is no time for victory laps.”
The pact also encourages voluntary contributions from newly wealthy nations like China, the world’s largest emitter. However, the language reflects no binding commitments for these nations, sparking criticism from wealthier countries that had sought greater involvement from emerging economies.
Broader Challenges and Missed Opportunities
The agreement includes a larger $1.3 trillion annual target by 2035 to tackle rising temperatures and climate disasters, but most of this funding is expected to come from private sources. Wealthy nations, facing political resistance to increased government funding, argued that the $300 billion was the maximum feasible.
Compounding frustrations were efforts, led by Saudi Arabia, to dilute commitments made at last year’s COP28 in Dubai to phase out fossil fuels. The final texts lacked any explicit mention of transitioning away from fossil fuels, a move criticized by small island nations and climate activists.
Azerbaijan, an oil and gas exporter, faced accusations of failing to rise to the occasion as host. Critics argued its reliance on fossil fuels undermined the urgency of the summit, held as the planet continues to break temperature records and suffer devastating climate-related disasters.
Looking Ahead
While the deal represents progress in mobilizing climate finance, it highlights the persistent gulf between global ambitions and the urgent needs of vulnerable nations. With worsening climate impacts on the horizon, the world’s leaders face mounting pressure to deliver solutions that match the scale of the crisis.
