The climate negotiations at COP29 in Baku are at a critical juncture, with only 48 hours left for delegates to finalize a key issue: determining the financial support that wealthier nations should provide to developing countries for climate change mitigation and adaptation.
The latest proposals highlight the ongoing challenges, with significant decisions still pending. These include defining what qualifies as “climate finance,” identifying contributors, and establishing a total annual commitment. Two opposing positions have emerged: one advocating for grant-based funding, excluding contributions from developing countries, and another that seeks a broader definition of climate finance to include a wider range of contributors, including wealthier nations.
However, a major issue remains—the absence of a specific financial target. The placeholder ‘X’ in the draft document shows that donor countries, particularly in the European Union, are hesitant to commit to a clear number before the agreement’s structure and contributors are defined. This uncertainty is compounded by the fact that economists at the UN talks estimate that developing nations will need at least $1 trillion annually by 2030 to effectively address climate change.
With mounting pressure as COP29 nears its conclusion on Friday, negotiators will need to bridge the gap between these diverging positions to finalize a climate finance agreement. The outcome of these talks will play a crucial role in determining the global community’s ability to support vulnerable countries in combating climate change and its devastating effects.
