At COP29 in Baku, Azerbaijan, a contentious climate finance deal was approved, committing developed nations to provide $300 billion annually to aid developing countries over the next decade. This agreement, presented by COP29 President Mukhtar Babayev during the closing meeting on November 24, 2024, has drawn significant criticism for being inadequate in light of the estimated $2.4 trillion needed each year to effectively combat climate impacts and transition from fossil fuels [4931787f][19378c5d].
The $300 billion commitment, which aims to triple the previous target of $100 billion set for 2020, was only fully met in 2022, highlighting the ongoing challenges in climate financing [4931787f]. Critics, including representatives from the Global South, expressed their frustration, labeling the funding as 'crumbs' and staging walkouts in protest during negotiations [19378c5d][4931787f]. India’s envoy specifically criticized the deal for the developed nations' unwillingness to fulfill their responsibilities, raising concerns about trust issues for future negotiations, particularly at COP30 in Brazil [4931787f].
Geopolitical tensions also played a significant role in the negotiations, with the potential for a U.S. withdrawal under re-elected President Donald Trump looming over discussions. This uncertainty, coupled with opposition from countries like Saudi Arabia and China against transitioning away from fossil fuels, complicated the talks [4931787f][778be8e7].
The backdrop of these discussions is alarming, as 2023 has been recorded as the hottest year, with predictions that 2024 will surpass it [19378c5d]. The deal encourages innovative financing sources, such as carbon levies on shipping and aviation, which could help mobilize private finance. Reports indicate that private finance mobilization grew from $14 billion in 2021 to $22 billion in 2022, reflecting a positive trend [778be8e7].
As COP29 concluded, over 300 NGOs urged developing nations to reject the deal if better offers were not made, criticizing developed countries for their inadequate commitment to addressing the climate crisis [a4d891a5]. Looking ahead, pro-climate action governments are aiming to coordinate their efforts to ensure that the commitments made at COP29 are not only met but expanded upon, as the fight against climate change continues to intensify [778be8e7].