At COP29 in Baku, nearly 200 countries reached a historic agreement to allocate $300 billion annually to finance the poorest nations in their fight against the impacts of climate change. This new target will replace the previous commitment of $100 billion per year, which, although fulfilled in 2022 two years late, will expire in 2025.
A controversial agreement
The deal was hailed as insufficient by many developing nations, which have faced the heaviest costs from climate disasters such as floods, storms and droughts. However, UN climate chief Simon Steill hailed it as “an insurance policy for humanity”.
Criticism from poor countries : Delegates from small islands and vulnerable nations temporarily walked out of the negotiations in protest at the lack of inclusiveness and attempts by fossil fuel-producing countries to water down the deal.
Tensions between rich and poor : The debate on the historical responsibility of industrialized countries, the main emitters of greenhouse gases, became the center of the discussion.
Who will pay?
Some 24 industrialized countries, including the U.S., Canada and European nations, will lead the contributions. While the agreement encourages emerging economies such as China and the Gulf states to participate, it does not oblige them.
Europe's demands : European governments have urged China, the world's second-largest economy, to contribute significantly to the fund.
Long-term goal : In addition to the $300 billion annually, the agreement sets a goal of raising $1.3 trillion a year by 2035, including public and private financing.
Other developments at COP29
1. Global carbon credit market : Rules have been set for the buying and selling of carbon credits, which could mobilise billions of dollars in projects such as reforestation and clean technologies.
2. 1.5°C target at risk : According to the UN Emissions Gap Report 2024, the planet is on track for a temperature increase of up to 3.1°C by the end of the century, dangerously exceeding the limit set in the Paris Agreement.
Political and climatic challenges
Donald Trump's election as US president raises uncertainty about the country's commitment to climate finance. Trump, who has called climate change a "hoax," has already promised to withdraw the US from international agreements.
Declining priorities : Geopolitical tensions, such as the war in Ukraine and conflicts in the Middle East, have displaced climate change as a priority in the West.
Meanwhile, 2024 is shaping up to be the hottest year on record , with climate disasters devastating both developing and industrialized nations.