The Azerbaijani presidency of COP29 has proposed a $250 billion annual target for climate finance by 2035, aiming to replace the $100 billion commitment made in 2009. The figure, unveiled in a draft agreement during the climate summit in Baku, marks a step forward in negotiations but has been met with criticism from developing nations and climate activists.
A Proposal Amid Tense Negotiations
The draft text emerged after nearly two weeks of intense and often divisive debate. It suggests funding from a combination of public and private sources, including grants, bilateral and multilateral contributions, and private sector investments. While the proposal aims to mobilise broader financial flows, it falls significantly short of the $1.3 trillion per year target that developing nations and small-island states have demanded.
The $250 billion figure is described as a baseline, with the draft encouraging efforts to scale up financing to $1.3 trillion annually by 2035. However, this higher figure is treated as an aspirational goal rather than a binding commitment, leaving many stakeholders dissatisfied.
Reaction from Developing Nations
Developing countries, including China, which continues to identify as part of this group despite EU objections, have voiced frustration with the draft. Many argue that the proposal lacks sufficient guarantees and accountability mechanisms, particularly for historic polluters. The draft text also “invites” emerging economies to voluntarily contribute to the funding pool, a point of contention for nations that see climate finance as a responsibility of wealthier countries.
The response from small-island states and other vulnerable regions has been especially critical. These nations face existential threats from rising sea levels and increasingly extreme weather and have consistently called for more robust financial support.
Activist Response
Climate Action Network Europe was quick to denounce the proposal. Chiara Martinelli, the network’s director, described the $250 billion target as “not even breadcrumbs,” criticising the lack of new grants and the limited accountability measures for high-emitting nations.
“Rich countries must return to the negotiation room to step up, pay up, and deliver real climate finance,” Martinelli stated. “This text is unacceptable. We will fight until the last minute for an ambitious deal.”
The criticism reflects broader dissatisfaction with the pace of negotiations and the perceived reluctance of developed nations to increase their financial commitments significantly.
Azerbaijani Presidency Defends the Proposal
The Azerbaijani COP29 presidency defended the draft text, describing it as the result of an “extensive and inclusive consultation process” that stretched into the early hours of the morning. In a statement, they characterised the proposal as a “balanced and streamlined package” designed to pave the way for consensus.
“We gave all groups the opportunity to react to the package of texts,” the presidency said. “These texts form a balanced and streamlined package for COP29. The presidency urges Parties to study this text intently to pave the way towards consensus on the few options remaining.”
However, Azerbaijan’s leadership of the talks has faced scrutiny due to its ties with the fossil fuel industry, raising questions about its commitment to ambitious climate action.
Implications
The proposal comes amid mounting pressure on wealthy nations to fulfil and exceed their longstanding financial pledges. The $100 billion target, first set in 2009, has never been fully met, leading to growing mistrust among developing nations.
The European Union has called for an expanded donor base to include emerging economies, a position reflected in the draft text’s invitation for voluntary contributions from developing countries. However, this approach has drawn criticism from nations that view it as a shift in responsibility away from those most historically responsible for emissions.
The Path Forward
As negotiations enter their final hours, the question remains whether the $250 billion target will suffice to bridge the gap between developed and developing nations. Failure to reach a consensus risks further polarisation and could undermine global efforts to combat climate change.
For now, the Azerbaijani presidency is urging all parties to engage constructively to finalise the agreement. Whether this will lead to a meaningful breakthrough or deepen existing divisions remains to be seen.
The outcome of COP29 will likely have significant implications for global climate governance, setting the tone for future negotiations and determining the level of trust and cooperation between nations in addressing the climate crisis.
