COP29 draft deal proposes wealthy nations give $250 billion in climate finance

The new draft outcome text, which will surely push this round of talks into the weekend, called for the overall climate financing goal to reach “at least $1.3 trillion by 2035”, but left out specifics – grants, loans, or from the private sector – on how these funds will be raised

Delegations in Baku are expected to keep negotiating on several key issues:

• Specifics about the role of developed countries in providing this new finance.
• A global goal on a just transition.
• Clear way forward on both adaptation and mitigation.

‘A slap in the face’

Civil society climate and environment advocates were quick to react to this latest draft.

“I can say it is disappointing to [at] the very least”, said Namrata Chowdhary from the 350.org, an international environmental organization addressing the climate crisis.

“It is a slap. It is insult. It is shocking that we are at this state now. The rich countries are basically gambling with the lives of people in the developing nations and small islands,” she said.

Lidy Nacpil from Asian Peoples’ Movement on Debt and Development also expressed her disappointment. She also pointed out, that “climate finance should not come in the form of loans because this is adding to the debt burden”.

“One of the issues that is preventing the Global South from undertaking urgent climate actions and from also providing our people with essential services that we need is the debt burden,” she told UN News.

Jacobo Ocharan of Climate Action Network International said: “We urge all developing countries to have the courage in the negotiations to keep pushing, because this deal is terrible. We keep pushing on the idea that no deal is better than a bad deal.”

What’s at stake

COP29, formally the 29^th Conference of Parties to the UN Framework Convention on Climate Change (UNFCCC), has been dubbed, the ‘climate finance COP’ because parties are expected to establish a new global climate finance target.

This target, or new collective quantified goal (NCQG), is seen as one of the summit’s main deliverables. It will replace the existing $100 billion goal that is due to expire in 2025.

Climate experts have pegged the new annual funding goal to be between $1 trillion and $1.3 trillion, which would assist vulnerable nations to deal with loss and damage from climate change and to adapt to that change, including building out their own clean-energy systems.

Last week, in a move to support a new funding target, multilateral development banks announced a significant boost in climate finance for low- and middle- income countries. This will reach $120 billion a year by 2030 with another $65 billion mobilised from the private sector, with a natural projection that will increase these values for 2035.

More to follow…