By Cross Udo
Countries at the COP29 climate summit in Baku have adopted a global finance target of $300bn annually by 2035 to help poorer nations manage the impacts of climate change.
However, after extended negotiations, the deal has been met with mixed reactions. Some call it a significant step, while others deem it inadequate to address the climate crisis.
The deal aims to increase financial support to vulnerable nations, building on the previous $100bn annual commitment, which was met late in 2022 and set to expire in 2025.
It was intended to help nations combat climate impacts like storms, floods, and droughts, exacerbated by industrialized countries’ historical greenhouse gas emissions.
However, while some delegates celebrated the agreement as a victory for global climate cooperation, others criticised it as insufficient.
Speaking on behalf of India, Chandni Raina, a representative of the Indian delegation, described the deal as an “optical illusion,” arguing it fails to address the scale of the crisis.
“I regret to say that this document is an optical illusion. In our opinion, this will not address the enormity of our challenges. Therefore, we oppose the adoption of this document,” he said.
The United Nations climate chief, Simon Stiell, acknowledged the complex negotiations that led to the agreement but hailed the outcome as an insurance policy for humanity against global warming.
“It has been difficult, but we’ve delivered a deal. This deal will keep the clean energy boom growing and protect billions of lives. But like any insurance policy, it only works if the premiums are paid in full and on time,” Stiell added.
The deal also lays the groundwork for next year’s climate summit, which will be held in Brazil’s Amazon rainforest. At this summit, countries are meant to map out the next decade of climate action.
The summit touched on the heart of the debate over the financial responsibility of industrialized countries—whose historical use of fossil fuels has caused the bulk of greenhouse gas emissions—to compensate others for worsening damage from climate change.
It also laid bare divisions between wealthy governments constrained by tight domestic budgets and developing nations reeling from the costs of storms, floods, and droughts.
The group of countries required to contribute to climate finance—comprising around two dozen industrialised nations, including the U.S., Canada, and European countries—was initially determined during U.N. climate talks in 1992.
European governments have called for expanding the list of contributors to include nations like China, the world’s second-largest economy, and oil-rich Gulf states. While the agreement encourages developing countries to contribute voluntarily, it does not mandate participation.
The deal also outlines a broader target to raise $1.3trn annually in climate finance by 2035, encompassing contributions from both public and private sources. Economists argue that this amount aligns with the funding required to combat global warming effectively.
