- COP29 aims to secure a larger target beyond the expiring $100 billion annual pledge to help developing nations tackle climate change.
- Wealthy countries want fast-growing economies like China to contribute while developing nations demand at least $1 trillion yearly support.
- Failure to reach a significant financial deal could weaken climate pledges and undermine efforts to meet global climate goals by 2025.
Nearly 200 nations will gather at the UN’s COP29 summit in Baku from November 11 to 22 to secure trillions of dollars for global climate projects.
In 2009, wealthy nations pledged $100 billion annually to help developing countries shift to clean energy and adapt to climate impacts. That goal, fully met in 2022, expires this year. Countries now aim to set a higher target for 2025 and beyond.
Tensions have risen over the amount and contributors. Wealthy nations suggest combining government funds and additional financing from multilateral institutions and private investors. Developing nations demand the deal to reflect their financial needs to fight climate change.
The US contributed nearly $10 billion to climate finance last year, but this falls behind the European Union’s $31 billion. Concerns over a possible Donald Trump victory in the US have cast doubt on future contributions, threatening to reduce the global target.
Wealthy countries urge fast-growing economies like China and Gulf oil nations to contribute. However, China, the world’s largest investor in electric vehicles and renewable energy, refuses, arguing it remains a developing country with less responsibility for climate finance.
Developing nations, including African countries and small island states, call for at least $1 trillion annually to meet climate goals. Saudi Arabia and other Arab nations propose a $1.1 trillion target, including $441 billion in direct grants from wealthy nations. Despite these demands, rich countries hesitate to name a figure, citing strained budgets.
In past agreements, most contributions came from public money. Now, wealthy nations worry about increasing their contributions due to economic pressures. But as climate disasters intensify, the need for more ambitious financing grows.
Human activity, mainly burning fossil fuels, has raised global temperatures by around 1.3°C, intensifying floods, storms, and heat waves. Scientists warn that current plans to cut emissions remain insufficient to slow climate change, risking even worse warming.
The stakes are high at COP29. Failure to secure a significant finance deal may weaken climate pledges. Developing nations might struggle to afford more ambitious actions without adequate financial support. Africa, for instance, has only received 2% of global renewable energy investment over the last 20 years.
Leaders at COP29 aim to correct this imbalance. Climate finance heavily favours large economies like the US and China, leaving smaller, vulnerable nations underfunded.
With the UN deadline of 2025 for updated climate plans fast approaching, COP29 is a crucial moment. Countries must reach a breakthrough on climate financing to ensure they meet their targets and avoid the worst impacts of global warming.
These negotiations could define the global fight against climate change for years.