World Reaches $300 Billion Climate Finance Deal at COP29

AFP/APP

Baku: The global community approved a contentious climate finance deal at COP29 on Sunday, committing wealthy nations to provide at least $300 billion annually by 2035 to assist poorer countries in combating climate change.

However, the agreement faced immediate backlash, with many developing nations deeming the amount insufficient to address the growing climate crisis.

After two weeks of intense negotiations and sleepless deliberations in Azerbaijan’s capital, nearly 200 nations reached the agreement in the early hours at a sports stadium in Baku.

However, the celebrations were short-lived, as Indian delegate Chandni Raina sharply criticized the deal.

“The amount proposed is abysmally poor and nothing more than an optical illusion. It fails to address the enormity of the challenge we face,” Raina stated.

The deal aims to replace the existing $100 billion annual pledge, which expires soon, with a $300 billion commitment to support vulnerable nations in transitioning to green economies and preparing for worsening climate disasters. 

Yet, this amount falls significantly short of the demands made by developing nations, who sought at least $500 billion annually.

Deep Divisions Over Climate Finance

The negotiations underscored a long-standing divide between wealthy nations, responsible for the bulk of historic greenhouse gas emissions, and poorer nations, which bear the brunt of climate-related disasters.

EU climate envoy Wopke Hoekstra hailed the deal as “the start of a new era for climate finance,” emphasizing the importance of sustained commitments. However, critics from developing nations expressed deep disappointment.

“This COP has been a disaster for the developing world,” said Mohamed Adow, director of the Kenyan think tank Power Shift Africa. “It’s a betrayal of both people and the planet by wealthy countries who claim to take climate change seriously.”

Negotiations on the Brink of Collapse

The talks nearly collapsed on several occasions, with developing nations walking out of meetings in protest over inadequate financial commitments from wealthier countries.Despite their dissatisfaction, many reluctantly allowed the agreement to pass, prioritizing some progress over no deal at all.

The deal’s adoption marks a critical yet divisive step forward in global climate negotiations, leaving many questioning whether it will be enough to tackle the escalating climate crisis.