Wealthy international locations have pledged to contribute $300bn a yr by 2035 to assist poorer nations fight the results of local weather change after two weeks of intense negotiations on the United Nations climate summit (COP29) in Azerbaijan’s capital, Baku.
Whereas this marks a big improve from the earlier $100bn pledge, the deal has been sharply criticised by creating nations as woefully inadequate to deal with the size of the local weather disaster.
This yr’s summit, hosted by the oil and gas-rich former Soviet republic, unfolded towards the backdrop of a looming political shift in the US as a climate-sceptic Donald Trump administration takes workplace in January. Confronted with this uncertainty, many international locations deemed the failure to safe a brand new monetary settlement in Baku an unacceptable threat.
Listed below are the important thing takeaways from this yr’s summit:
‘No actual cash on the desk’: $300bn local weather finance fund slammed
Whereas a broader goal of $1.3 trillion yearly by 2035 was adopted, solely $300bn yearly was designated for grants and low-interest loans from developed nations to assist the creating world in transitioning to low-carbon economies and making ready for local weather change results.
Beneath the deal, the vast majority of the funding is anticipated to return from personal funding and various sources, comparable to proposed levies on fossil fuels and frequent flyers – which stay beneath dialogue.
“The wealthy world staged a terrific escape in Baku,” mentioned Mohamed Adow, the Kenyan director of Energy Shift Africa, a assume tank.
“With no actual cash on the desk, and imprecise and unaccountable guarantees of funds to be mobilised, they’re making an attempt to shirk their local weather finance obligations,” he added, explaining that “poor international locations wanted to see clear, grant-based, local weather finance” which “was sorely missing”.
The deal states that developed nations could be “taking the lead” in offering the $300bn – implying that others may be a part of.
The US and the European Union need newly rich rising economies like China – presently the world’s largest emitter – to chip in. However the deal solely “encourages” rising economies to make voluntary contributions.
Failure to explicitly repeat the decision for a transition away from fossil fuels
A name to “transition away” from coal, oil, and fuel made throughout final yr’s COP28 summit in Dubai, the United Arab Emirates, was touted as groundbreaking – the primary time that 200 international locations, together with prime oil and fuel producers like Saudi Arabia and the US, acknowledged the necessity to part down fossil fuels. However the newest talks solely referred to the Dubai deal, with out explicitly repeating the decision for a transition away from fossil fuels.
Azerbaijan’s President Ilham Aliyev referred to fossil gasoline sources as a “gift from God” throughout his keynote opening speech.
New carbon credit score buying and selling guidelines accredited
New guidelines permitting rich, high-emission international locations to purchase carbon-cutting “offsets” from creating nations have been accredited this week.
The initiative, generally known as Article 6 of the Paris Settlement, establishes frameworks for each direct country-to-country carbon buying and selling and a UN-regulated market.
Proponents consider this might channel very important funding into creating nations, the place many carbon credit are generated via actions like reforestation, defending carbon sinks, and transitioning to wash vitality.
Nonetheless, critics warn that with out strict safeguards, these methods could possibly be exploited to greenwash local weather targets, permitting main polluters to delay significant emissions reductions. The unregulated carbon market has beforehand confronted scandals, elevating issues in regards to the effectiveness and integrity of those credit.
Disagreements throughout the creating world
The negotiations have been additionally the scene of disagreements throughout the creating world.
The Least Developed International locations (LDCs) bloc had requested that it obtain $220bn per yr, whereas the Alliance of Small Island States (AOSIS) needed $39bn – calls for that have been opposed by different creating nations.
The figures didn’t seem within the last deal. As an alternative, it requires tripling different public funds they obtain by 2030.
The following COP, in Brazil in 2025, is anticipated to concern a report on the way to increase local weather finance for these international locations.
Who mentioned what?
EU Fee President Ursula von der Leyen hailed the deal in Baku as marking “a brand new period for local weather cooperation and finance”.
She mentioned the $300bn settlement after marathon talks “will drive investments within the clear transition, bringing down emissions and constructing resilience to local weather change”.
US President Joe Biden forged the settlement reached in Baku as a “historic consequence”, whereas EU local weather envoy Wopke Hoekstra mentioned it will be remembered as “the beginning of a brand new period for local weather finance”.
However others absolutely disagreed. India, a vociferous critic of wealthy international locations’ stance in local weather negotiations, referred to as it “a paltry sum”.
“This doc is little greater than an optical phantasm,” India’s delegate Chandni Raina mentioned.
Sierra Leone’s Atmosphere Minister Jiwoh Abdulai mentioned the deal confirmed a “lack of goodwill” from wealthy international locations to face by the world’s poorest as they confront rising seas and harsher droughts. Nigeria’s envoy Nkiruka Maduekwe referred to as it “an insult”.
Is the COP course of doubtful?
Regardless of years of celebrated local weather agreements, greenhouse fuel emissions and international temperatures proceed to rise, with 2024 on monitor to be the most popular yr recorded. The intensifying results of utmost climate spotlight the inadequate tempo of motion to avert a full-blown local weather disaster.
The COP29 finance deal has drawn criticism as insufficient.
Including to the unease, Trump’s presidential election victory loomed over the talks, together with his pledges to withdraw the US from international local weather efforts and appoint a local weather sceptic as vitality secretary additional dampening optimism.
‘Not match for goal’
The Kick the Large Polluters Out (KBPO) coalition of NGOs analysed accreditations on the summit, calculating that greater than 1,700 individuals linked to fossil gasoline pursuits attended.
A gaggle of main local weather activists and scientists, together with former UN Secretary-Basic Ban Ki-moon, warned earlier this month that the COP course of was “not match for goal”.
They urged smaller, extra frequent conferences, strict standards for host international locations and guidelines to make sure corporations confirmed clear local weather commitments earlier than being allowed to ship lobbyists to the talks.
