World Still Split Over Climate Finance as COP29 Nears Deadline

AFP/APP

Baku: As the clock ticks on the COP29 climate talks in Azerbaijan, negotiations remain deadlocked over financing for developing nations, with a fresh draft agreement revealing deep divisions between rich and poor countries.

The updated draft recognizes the need for developing nations to secure $1 trillion annually to combat global warming but fails to include a definitive figure for financial commitments, a critical component for reaching an agreement.

With only one day left before the conference is scheduled to conclude, the lack of consensus on key issues who should pay, how much, and the type of funding has left negotiators scrambling for progress.

Finance Deadlock

Ali Mohamed, Chair of the African Group of Negotiators and Kenya’s climate envoy, described the absence of a concrete financial pledge as the “elephant in the room.”

“This is the reason we are here… but we are no closer. Developed countries must urgently engage on this matter,” he urged.

Developing nations, excluding China, are projected to require $1 trillion annually by 2030, rising to $1.3 trillion by 2035, as per a UN-commissioned economic assessment. Many developing nations are advocating for these funds to be delivered as grants, not loans, to avoid adding to their debt burdens.

Polarized Positions

The European Union and the United States, two of the largest climate finance providers, have refrained from committing to a specific figure until the terms of the agreement are clarified.

Greenpeace’s Jasper Inventor criticized this delay, calling it “an insult to the millions on the frontlines of climate change impacts.” Similarly, Mohamed Adow, director of Power Shift Africa, expressed frustration:

“We came here to talk about money. The way you measure money is with numbers. We need a cheque, but all we have is a blank piece of paper.”

A Race Against Time

The streamlined 10-page draft presents polarized positions, highlighting the challenges of reconciling developed countries’ fiscal and political constraints with developing nations’ urgent financial needs.

Li Shuo, director of the China Climate Hub at the Asia Society Policy Institute, described the draft as presenting “two extreme ends of the aisle without much in between.”

As nations return to the negotiating table, the final hours of COP29 will focus on bridging these divides and ensuring the agreement reflects the urgency of climate action.