The ongoing discussions at COP29 have led to a significant development regarding climate finance for developing nations. After extensive negotiations, a draft text of the new climate finance package was condensed from 25 pages to just 10, but crucial issues remain unresolved as the conference approaches its conclusion.
Developing countries are adamantly requesting a minimum of USD 1.3 trillion annually to address escalating climate challenges. This demand highlights their frustration with developed nations, which have yet to commit to a specific financial figure for support starting in 2025. The draft acknowledges the necessity for public funding from developed countries but fails to specify how much will be provided, effectively shifting the burden onto developing nations to secure additional domestic funding.
Harjeet Singh, a climate activist and director at the Fossil Fuel Non-Proliferation Treaty Initiative, criticized the draft for presenting a “spectrum of options” that vary in quality. He emphasized that a genuine transition from fossil fuels requires substantial public finance rather than vague promises. Similarly, Vaibhav Chaturvedi from the Council on Energy, Environment and Water noted that while the structure of the draft is more streamlined, it lacks clear financial targets from developed nations.
The positions of developed countries diverge significantly. One perspective suggests that global climate finance could potentially reach USD 1 trillion per year by 2035, though this figure remains unspecified and would derive from various sources, including domestic funds. This stance does not align with Article 9 of the Paris Agreement, which mandates developed countries to provide financial assistance to developing nations. The second position calls for mobilizing over USD 100 billion annually by 2035, utilizing a mix of public and private funding sources.
As negotiations continue, experts like Rob Moore from E3G stress the urgency for clear proposals and numbers to facilitate agreement. The next 48 to 72 hours will be critical as parties strive to finalize a comprehensive climate finance strategy that meets the needs of developing countries while addressing the complexities of global climate finance dynamics.
In summary, COP29 is at a pivotal moment where developing nations are pressing for substantial financial commitments from their developed counterparts to combat climate change effectively. The outcome of these discussions will significantly impact global efforts toward sustainable development and climate resilience.