Countries at the COP29 summit in Baku agreed on a global climate finance of $300 billion per year to help poorer nations deal with the impacts of climate change. However, intended recipients found the amount “insufficient,” according to Reuters.
The agreement, reached after extended negotiations at the two-week conference in Azerbaijan’s capital, was meant to give momentum to global efforts to combat climate change in what is expected to be the hottest year on record.
Some delegates celebrated the deal, but others, especially from developing countries, criticized wealthy nations for not doing enough and accused Azerbaijan of rushing the plan through. Indian delegate Chandni Raina said the agreement was an “optical illusion” and would not solve the scale of the climate crisis. She opposed the deal on behalf of her country.
UN climate chief Simon Stiell defended the deal, describing it as an “insurance policy” for humanity against global warming, but warned that it would only work if countries fully and timely paid their financial contributions.
The deal stands on providing $300 billion annually by 2035, which is a boost over the previous commitment to provide $100 billion per year in climate finance starting in 2020. That earlier target was met two years late, in 2022, and expires in 2025. The agreement also sets the stage for next year’s summit in Brazil, where countries will plan for the next decade of climate action.
Negotiations, originally scheduled to finish on Friday, continued into overtime as nearly 200 countries struggled to reach an agreement. Some delegates from developing countries, including island nations, walked out in frustration.
Tina Stege, a climate envoy from the Marshall Islands, said the deal provides only a “small portion” of the funding that climate-vulnerable nations need, calling it “a start” but not enough.
Countries are still working to meet the goal of limiting global warming to 1.5°C (2.7°F) above pre-industrial levels, as set in the Paris Agreement. However, current projections show the world could warm by as much as 3.1°C (5.6°F) by the end of the century, due to rising emissions and fossil fuel use.
The deal does not include clear steps on how countries will reduce fossil fuel use or expand renewable energy, despite previous pledges made at last year’s UN climate summit.
The agreement also includes a goal to raise $1.3 trillion annually in climate finance by 2035, combining public and private sources. Economists say this is the amount needed to address global warming. It also sets rules for a global carbon market, which could help generate more funding for climate projects, such as reforestation and clean energy.
The climate finance deal faced challenges from the start, especially with the uncertainty around U.S. participation following the recent U.S. election. President-elect Donald Trump has previously dismissed climate change and vowed to withdraw the U.S. from international climate efforts, raising doubts about future U.S. contributions.
Despite these concerns, President Joe Biden expressed support for the agreement, calling it a historic step forward. He acknowledged that more work is needed to meet climate goals but highlighted that this deal moves the world closer to a cleaner, safer future.
Meanwhile, climate-related disasters continue to escalate worldwide, including devastating floods in Africa, deadly landslides in Asia, and droughts in South America. Even developed countries are being affected, with recent floods in Spain and multiple billion-dollar disasters in the U.S. this year.