COP29: World leaders agree on $300 billion climate finance deal for poorer countries

After more than two weeks of intense deliberations and negotiations, world leaders at the 29th United Nations Climate Summit (COP29) in Baku, Azerbaijan, reached a consensus on the “Baku Finance Goal.”

The COP29 President, Mukhtar Babayev, announced the deal reached during the closing plenary of the summit in Baku on Sunday.

“The Baku Finance Goal represents the best possible deal we could reach. In a year of geopolitical fragmentation, people doubted that Azerbaijan could deliver. They doubted that everyone could agree. They were wrong on both counts,” the COP29 President said.

This framework establishes a new global objective to mobilise $1.3 trillion in climate finance directed toward developing nations by 2035, representing a substantial increase in agreed funding to support climate adaptation and mitigation efforts.

The new finance package adopted also includes a fresh pledge by wealthy nations to provide $300 billion annually to poorer countries to help them address climate change challenges.

The new deal, a hefty $300 billion, may seem impressive as it triples the previous $100 billion goal set in 2009. However, it seems not to have met the hopes of negotiators and delegates from the Global South, especially those from Africa and similar regions.

Within the past two weeks of negotiations, many voices echoed their dissatisfaction with the negotiation process, feeling that it was overshadowed by perceived roadblocks and sabotage from wealthier nations and even some developing countries.

This year’s COP, dubbed the finance COP, which began on 11 November, was expected to conclude on 22 November. However, the discussions were extended by over 33 hours, leaving some negotiators to stage a walkout. They expressed their dissatisfaction with weak commitments from wealthy nations.

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The final draft agreed upon on Sunday came after two dissatisfactory proposal drafts on Thursday and Friday, which prompted negotiators/delegates from the Global South to say: “A no deal is better than a deal that commits African countries to what is undeliverable without serious climate finance.”

The gap between ambition and reality remains a key source of frustration for Parties from climate-vulnerable countries advocating for greater equity in the climate change discussions.

More details soon…