COP29 agrees on $300 billion annual climate fund until 2035

At the COP29 summit in Baku, countries agreed on a $300 billion annual global climate finance target on Sunday, intended to support poorer nations in mitigating the effects of climate change.

However, the deal, finalised after extended negotiations, drew criticism from recipient nations, who deemed it insufficient to address the challenges they face.

The agreement, set to run until 2035, builds on a previous $100 billion per year commitment by wealthier nations, which was met belatedly in 2022 and expires in 2025.

UN Climate Chief Simon Stiell praised the deal as a step forward in combating global warming but cautioned that its success relies on consistent and timely funding.

The agreement was hailed by some delegates but criticised by others for lacking ambition and being rushed. India's representative Chandni Raina described the document as inadequate for the scale of the crisis.

The deal underscores ongoing disputes over financial responsibilities between developed nations — whose historical emissions have significantly contributed to climate change — and developing countries bearing the brunt of its impacts.

Wealthier nations, constrained by domestic budget pressures, resisted additional contributions, while developing countries and island states, grappling with climate-induced disasters, sought more robust support.

The pact includes a broader goal of raising $1.3 trillion annually by 2035 from both public and private sources, aligning with estimates of the funding required to tackle global warming effectively.

Rules for a global carbon market were also agreed upon, potentially unlocking additional financing for projects such as reforestation and renewable energy development.

Despite progress, the summit left critical gaps. It failed to outline concrete steps for phasing out fossil fuels or tripling renewable energy capacity — key pledges from the previous year.

Some negotiators accused Saudi Arabia of obstructing these plans. The summit also left unresolved debates over whether major developing economies, like China, should contribute to climate finance.

As the world grapples with intensifying climate impacts, including record-breaking temperatures, severe flooding, and destructive storms, global efforts to limit warming to 1.5°C above pre-industrial levels remain far off track.

The latest UN Emissions Gap Report projects warming of up to 3.1°C by the century's end, raising the stakes for future summits.

The agreement sets the stage for the next climate conference in Brazil’s Amazon rainforest, where nations will map out long-term strategies to accelerate climate action. However, geopolitical tensions, economic pressures, and wavering political will in wealthier nations threaten to derail momentum.

US President Joe Biden called the deal a significant step but urged further efforts, while his predecessor Donald Trump’s recent electoral victory has cast doubts on America’s future climate commitments. Meanwhile, climate-related disasters continue to wreak havoc worldwide, underscoring the urgency for action and equitable solutions.