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The United Nations climate body released fresh proposals on Thursday for the COP29 summit’s primary objective: determining the amount of financial support wealthy nations should provide to developing countries for climate change mitigation and adaptation.
As delegates enter the final 48 hours of negotiations in Baku, Azerbaijan, progress on this crucial issue has been slow.
The latest draft of the negotiating text, which arrived several hours behind schedule, reveals that significant decisions remain on key aspects of the climate finance agreement.
These include defining what qualifies as climate finance, identifying contributors, and establishing the total annual commitment.
Li Shuo, a climate diplomacy expert at the Asia Society Policy Institute, commented on the current state of negotiations: “We are far from the finish line. The new finance text presents two extreme ends of the aisle without much in between.”
The 10-page document, now streamlined to less than half its previous size, outlines opposing positions from developed and developing nations. One approach emphasizes grant-based funding and excludes contributions between developing countries from the official target.
The other, favoured by wealthier nations, seeks to broaden the definition of climate finance beyond grants and include contributions from a wider range of countries.
Notably absent from both options is a specific figure for the annual climate finance goal, with the amount placeholder marked as ‘X’. This omission reflects the reluctance of key donor countries, including those in the European Union, to commit to a number before clarifying the structure and contributor base of the agreement.
The lack of a concrete financial target is a significant concern. As Li Shuo pointed out, “Crucially, the text misses a number that defines the scale of future climate finance, a prerequisite for negotiation in good faith.”
This uncertainty persists despite economists at the UN talks last week estimating that developing countries require at least $1 trillion annually by 2030 to effectively address climate change.
As COP29 approaches its scheduled conclusion on Friday, negotiators face mounting pressure to bridge the gap between these divergent positions and reach a consensus on climate finance.
The outcome of these talks will be critical in determining the global community’s ability to support vulnerable nations in their fight against climate change and its impacts.