Nations Race to Reach Climate Deal as COP29 Draft Rejected

AFP/APP

Baku: A fresh draft of the climate pact presented at COP29 has failed to resolve key differences between nations, with negotiators scrambling to secure a trillion-dollar finance agreement before the summit concludes on Friday.

The primary issue at COP29 is reaching a new financing target to replace the $100 billion annually pledged by developed nations to assist poorer countries in combating climate change.

Developing countries, along with China, are calling for $1.3 trillion by 2030, with at least $500 billion coming from developed nations.

However, major contributors like the European Union have expressed resistance to such demands, suggesting that private sector funding will be necessary to meet a higher target.

The latest draft recognizes the need for a commitment of at least “USD [X] trillion” per year but does not specify the exact figure sought in Baku. Cedric Schuster, the Samoan chairman of the Alliance of Small Island States (AOSIS), said, “There is a critical piece of this puzzle missing: the overall number,” urging that the time for “political games” has passed.

Ali Mohamed, chair of the African Group of Negotiators, described the missing financial figure as the “elephant in the room,” calling for urgent engagement from developed countries.

COP29 hosts Azerbaijan have promised to release a “shorter” draft on Thursday evening, which will include specific numbers. However, other significant sticking points remain unresolved, including how funds will be raised, delivered, and who will contribute. Many countries also criticized the text for not adequately addressing the need to phase out fossil fuels, the main contributors to global warming.

Australian climate minister Chris Bowen expressed frustration, stating that countries had minimized references to coal, oil, and gas in the draft. “This is a big step back, and is not acceptable at this current moment of crisis,” he said.

As the deadline nears, tensions rise. EU climate commissioner Wopke Hoekstra urged greater leadership, calling the current draft “imbalanced, unworkable, and unacceptable.” COP29 lead negotiator Yalchin Rafiyev called for compromise and solidarity, emphasizing the long road ahead.

Some officials, including Ireland’s climate minister Eamon Ryan, suggested that progress was being made behind the scenes. “This text is not the final text, that is clear. It will be quite radically different,” he said.

The agreement on climate finance was intended to be the centerpiece of COP29, but the draft entrenches the opposing positions of developed and developing countries. While developed nations want all sources of finance—public and private—counted toward the goal, developing countries are demanding grants from government budgets of wealthier nations, rather than loans that could exacerbate national debt.

The EU and the United States, two of the largest climate finance providers, have refused to propose a figure without further details of the agreement. This has been described as an “insult” by environmental groups like Greenpeace, with activists such as Mohamed Adow stating, “We need a cheque, but all we have right now is a blank piece of paper.”