COP29: World agrees to $300bn deal for developing countries

After two weeks of intense negotiations, delegates at the UN climate summit in Baku, known as COP29, agreed late on Saturday to provide funding for developing countries to combat and adapt to climate change.

Historic wealthy emitters offered climate finance worth $300 billion a year by 2035, far lower than developing countries hoped for.

Also included in the agreement was a broader goal of raising $1.3 trillion in climate finance annually by 2035. 

This would include funding from both public and private sources, which economists say matches the sum needed every year to address global warming.

The COP29 climate conference in Baku, Azerbaijan, was set to finish on Friday but extended as nearly 200 countries struggled to agree on a climate funding plan for the next decade.

Frustrated by a lack of inclusion, delegates from developing and small island nations walked out, citing concerns that fossil fuel-producing countries were trying to weaken the agreement.

"Difficult journey" to reach agreement

The previous commitment to provide $100 billion a year in climate finance for poorer nations by 2020 was met two years late, in 2022, and had been due to expire in 2025. 

Though an increase on the previous deal, the agreement was criticized by developing nations, who called it insufficient.

However, United Nations climate chief Simon Stiell said the agreement could be seen as an insurance policy for humanity.

"It has been a difficult journey, but we've delivered a deal," he said after the agreement was adopted. "This deal will keep the clean energy boom growing and protect billions of lives."

"It will help all countries to share in the huge benefits of bold climate action: more jobs, stronger growth, cheaper and cleaner energy for all. Like any insurance policy, it only works, if the premiums are paid in full, and on time."

A resistent few attempted to restrict progress

Germany's Foreign Minister Annalena Baerbock made a lengthy statement on social media platform X, formerly Twitter, following the agreement acknowledging that resistance to meeting the issues of climate change had been fought back during COP 29.

"Yes, our agreement here tonight is not enough, due to resistance from a few," she wrote. "Those who have come here to prevent progress and prevent more climate justice and to weaken our multilateral UN system altogether, have failed - badly." 

Bearbock also added that the most vulnerable nations were not being abandoned and the $300 billion a year agreement was just a starting point.

"Nobody forgot about historical responsibility," she added. "As a member of a younger generation, it is also clear: We cannot tackle the challenges of the future with the solutions of the past. We know that our decisions today won't alone be enough to meet all the needs."

Developing nations react with disappointment

Despite the agreement being met with applause from those in the room in Baku, there was also disappointment at the final figures agreed.

India's representative Chandni Raina said the Asian country rejected the document, adding: "We are disappointed in the outcome which clearly brings out the unwillingness of the developed country parties to fulfill their responsibilities."

"I regret to say that this document is nothing more than an optical illusion. This, in our opinion, will not address the enormity of the challenge we all face. Therefore, we oppose the adoption of this document."

Meanwhile Evans Njewa, a Malawian diplomat and chair of the Least Developed Countries bloc said: "This goal is not what we expected to get. After some years of discussions, it is not ambitious to us." 

A base to build from

In contrast, the European Union's climate commissioner Wopke Hoekstra's believes that while the funds are not yet in the trillions, this was a first step to match that requirement. 

"With these funds and with this structure, we are confident we will reach the $1.3 trillion [objective,]" he said.

When asked whether there was enough progress being made to cut emissions, Hoekstra highlighted it was not the purpose of COP29 but the EU had ensured that the agreement at COP29 to reduce emissions by 43% by 2030 had been protected.

"It [cutting emissions] was not a focus of this COP but we wanted more because the world needs more of it.," he expained. 

 It is less than we would have liked, but it's better than we feared. So we're unhappy to lose a year, we're happy not to lose this fight."

UN Secretary General Antonio Guterres said the agreement must lead to reality imminently.

"I had hoped for a more ambitious outcome," he said. "But this agreement provides a base on which to build. It must be honoured in full and on time. Commitments must quickly become cash."

nn, km/rmt (AFP, AP, Reuters)