COP29 $300 Billion Climate Finance Deal; Developing Nations Say Amount is Inadequate

  • Nearly 200 nations worldwide endorsed a fraught climate finance deal early November 24 morning at the Cop29 climate summit in Baku.
  • UN climate chief Simon Stiell acknowledged the deal’s shortcomings, urging nations to see it as a foundation for future progress.

Nearly 200 nations worldwide endorsed a fraught climate finance deal early November 24 morning at the Cop29 climate summit in Baku. While some hailed it as a “new era for climate finance,” the $300 billion annual commitment from affluent nations left developing countries fuming, calling it a meagre response to the escalating climate crisis.

The agreement, finalised after two weeks of tense negotiations in an Azerbaijan sports arena, mandates that wealthy nations contribute at least $300 billion annually by 2035 to aid developing countries in green energy transitions and disaster preparedness. An increase from the previous $100 billion commitment, the figure falls short of the $500 billion sought by a coalition of 134 developing countries.

India emerged as a vocal critic of the deal, labelling it inadequate and unjust. “The amount that is proposed to be mobilised is abysmally poor. It’s a paltry sum,” said Indian delegate Chandni Raina. “This document is little more than an optical illusion. In our opinion, this will not address the enormity of the challenge we all face. Therefore, we oppose the adoption of this document,” she added.

Nigeria echoed India’s stance, with its representatives calling the package a “joke,” while Malawi and Bolivia also joined the opposition.

Despite the backlash, key players from affluent nations painted the deal as a landmark achievement. EU climate representative Wopke Hoekstra claimed Cop29 heralded “the start of a new era for climate finance.” Similarly, US President Joe Biden praised the agreement as a “significant step” in combating global warming, vowing to sustain America’s efforts despite his incoming successor Donald Trump’s climate scepticism.

“While some may seek to deny or delay the clean energy revolution underway in America and around the world, nobody can reverse it—nobody,” Biden declared.

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

UN climate chief Simon Stiell acknowledged the deal’s shortcomings, urging nations to see it as a foundation for future progress. “No country got everything they wanted, and we leave Baku with a mountain of work still to do. So this is no time for victory laps,” he remarked.

UN Secretary-General Antonio Guterres also expressed disappointment. “I had hoped for a more ambitious outcome—on both finance and mitigation—to meet the great challenge we face,” he said, urging governments to “build on this agreement.”

The deal proposes a broader $1.3 trillion annual target to address climate impacts, relying heavily on private sector contributions. However, tensions over the role of emerging economies like China, the world’s leading emitter, remain a sticking point.

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