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Rich countries should take the lead in providing $250 billion in climate finance to developing countries, according to a draft document released in the final hours of the United Nations COP29 summit, which has been ridiculed by poorer countries.
Some 200 countries participating in the United Nations climate change summit in Baku are vying for new funding targets aimed at helping poorer countries cope with the effects of global warming. This target replaces the $100 billion target agreed more than a decade ago.
The latest document submitted by Azerbaijan, which holds the COP29 Presidency, and which follows nearly two weeks of negotiations, says at least $1.3 trillion a year is needed in climate financing for developing countries.
According to the draft, the initial proposed target of $250 billion per year by 2035 will be financed from a wide range of sources, including alternative sources such as public, private, bilateral and multilateral funds. It is said that
The amount suggested was fiercely opposed by poorer countries most vulnerable to climate change and was widely seen as an early gamble. The G77 group of developing countries is calling for a target of at least $500 billion.
A person close to the Indian delegation slammed wealthy donor countries for seemingly ignoring their commitments to help developing countries finance their transition under the landmark Paris Agreement. “I don’t see that (promise) anywhere.”
This criticism was supported by the authors of an economic report that many negotiators used as the basis of their discussions. The amount is “too low and inconsistent with the implementation of the Paris Agreement,” they said.
The Independent High-Level Expert Group, led by economist Sir Nicholas Stern, said developed countries need to provide at least $300 billion a year by 2030 and $390 billion a year by 2035. The goal was “achievable” but needed more cooperation from rich countries, public financial institutions and the private sector.
However, some sources say the document suggests that a final agreement could be reached in Baku, although negotiations in Baku have been overshadowed by the election of Donald Trump and the host oil nation’s position. It’s getting thinner. The first week was marred by Argentina’s decision to withdraw its negotiators and Azerbaijani President Ilham Aliyev’s outbursts about its involvement in oil and gas.
“The deal coming out of Baku is not going to leave a bad taste in anyone’s mouth, but for the first time this year we are starting to see where it will land,” said Avinash Persaud, a key architect of the Bridgetown plan. . He has been involved in financial institution reform and is currently an advisor to the Inter-American Development Bank.
A senior US official said reaching the $250 billion goal would require “extraordinary funding” in donor coffers, given that meeting the previous smaller goal already required “significant increases.” ” needs to be introduced. The official said the new goals would require “ambitious bilateral action” as well as support from multilateral development banks and greater mobilization of private finance.
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Another flashpoint at COP29 is the work needed to meet the COP28 agreement on transitioning away from fossil fuels. Some Western countries expressed concern about the lack of focus on building on last year’s agreement. One Western delegation said the proposals on emissions cuts were “very bad”.
Alden Meyer, a senior associate at independent think tank E3G, said fossil fuel producing countries could “negotiate” more climate funding in exchange for stronger language on implementing emissions cuts in the final document over the weekend. He said there is. “My guess is there’s a little more change under the couch.”
Sources close to French negotiators rejected the idea by some developing countries that finance was the only priority at this COP. “We cannot compromise on the need to divest from fossil fuels . . . and decouple prosperity and economic development from greenhouse gases.”
The COP29 Presidency said it would make only “minor adjustments” to the latest draft of the document that will be the outcome of the United Nations climate change summit, which is scheduled to conclude on Friday. The document called on countries to “diligently” consider what it called a “balanced and reasonable package.”
While some ministers prepare to fly home on Saturday, negotiators from each team fear a breakdown in negotiations on key items ahead of the next COP, to be held in Brazil in 2025. In order to avoid this, I have been preparing to work on it since then.
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