Countries at the COP29 summit in Azerbaijan have agreed on a $300 billion (€288 billion) per year global finance target to help poorer nations cope with the impacts of climate change. However, the deal, which was reached after extended negotiations in Baku, has been criticized by many of the intended recipients as insufficient.
The agreement, hailed by some delegates as a step forward, was met with skepticism by others, particularly representatives from developing nations. Indian delegation member Chandni Raina described the deal as “nothing more than an optical illusion,” emphasizing that it would not address the scale of the climate crisis. “We oppose the adoption of this document,” she said shortly after the agreement was approved.
UN climate chief Simon Stiell acknowledged the difficulty of the negotiations but called the outcome an essential “insurance policy” for humanity against global warming. “It has been a difficult journey, but we’ve delivered a deal,” Stiell said. “This deal will keep the clean energy boom growing and protect billions of lives.” However, he cautioned that the success of the agreement would depend on timely financial contributions.
The $300 billion annual target, set to be reached by 2035, represents a significant increase over the previous goal of $100 billion per year, which was meant to be met by 2020 but was achieved two years late in 2022. The new commitment, which includes funding from both public and private sources, aims to support the climate adaptation needs of developing countries. However, some activists argue that it falls far short of the funding required to address the full scope of climate impacts.
The agreement also laid the groundwork for next year’s climate summit in Brazil, where countries are expected to outline their long-term climate action plans. Yet, the summit underscored the divisions between wealthy nations, with their tight domestic budgets, and poorer countries, which are increasingly affected by the devastating impacts of climate change, such as floods, droughts, and storms.
While the deal was seen as a “hopeful step” by Irish Minister for the Environment, Eamon Ryan, climate groups expressed disappointment. Tina Stege, climate envoy for the Marshall Islands, remarked, “We are leaving with a small portion of the funding climate-vulnerable countries urgently need. It isn’t nearly enough, but it’s a start.”
The negotiations also highlighted tensions between industrialized nations, whose historical emissions have driven climate change, and emerging economies like China and oil-rich Gulf states. While the deal encourages developing nations to contribute, it does not mandate their participation.
The summit, which ran into overtime as countries struggled to find common ground, also saw disagreements over how to phase out fossil fuels and scale up renewable energy. US climate advisor John Podesta noted that negotiations with countries like Saudi Arabia, which is heavily invested in oil, were a major hurdle.
With climate-related disasters escalating globally, including deadly floods in Africa, landslides in Asia, and extreme weather events in Europe and the US, the urgency of stronger climate action remains high. However, many countries continue to demand more robust financial commitments from wealthier nations to address the climate crisis in a meaningful way.
