The UN Climate Summit (COP29) in Baku concluded with a contentious $300 billion climate finance agreement intended to support developing nations by 2035. While the proposal has been hailed as a significant step by some global leaders, it has faced backlash from climate-vulnerable nations, activists, and civil society groups who view it as insufficient to address the scale of the climate crisis.
Azerbaijan Leads Compromise Amid Deep Divisions
Under the presidency of Azerbaijan, COP29 sought to define a New Collective Quantified Goal (NCQG) for climate finance, replacing the outdated $100 billion annual commitment made under the Paris Agreement. The final compromise allocates $300 billion to be mobilised by 2035, with developed nations taking the lead in providing funding. Contributions from private sectors and alternative sources, such as loans, investments, and insurance mechanisms, are expected to supplement the total.
The proposal builds on Article 9 of the Paris Agreement, which outlines both direct financing and the mobilisation of additional resources. While this broader approach aims to increase the overall pool of climate finance, questions remain about how the funds will be distributed, particularly among small island nations and least developed countries, which are disproportionately affected by climate impacts.
Tensions Among Delegates
The summit was marked by discord as negotiations stretched well past their scheduled conclusion. Representatives of the Alliance of Small Island States (AOSIS) staged a walkout, accusing the presidency of ignoring their concerns. Initial proposals of $250 billion were deemed inadequate and later revised to $300 billion. However, AOSIS continues to argue for a minimum of $500 billion to address both adaptation and mitigation needs effectively.
Further complicating the negotiations were allegations that Saudi Arabia had early access to draft texts, potentially influencing the outcome. Catherine Abreu of the International Climate Politics Hub called this “potentially catastrophic for the credibility of the talks.”
EU Climate Commissioner Wopke Hoekstra, reflecting on the challenges, described COP29 as “the start of a new era on climate finance” and an example of compromise in action. Meanwhile, UN Secretary-General António Guterres expressed mixed sentiments, acknowledging that the agreement provides “a base on which to build,” though it falls short of the ambition required to meet the global climate challenge.
Carbon Markets: A Limited Breakthrough
A partial agreement was reached on carbon markets under Article 6 of the Paris Agreement. This mechanism enables nations to trade carbon credits, allowing countries that exceed their emission targets to sell their surplus reductions to others struggling to meet their goals. The agreement also opens the carbon market to private companies, potentially increasing its scale.
However, the operationalisation of this market has been met with scepticism. Environmental groups criticised the measure as insufficient and prone to exploitation. Greenpeace International’s An Lambrechts dismissed the mechanism as “climate fraud,” arguing it allows polluters to offset emissions without addressing their root causes.
Activists Criticise Lack of Ambition
The compromise deal was met with widespread disappointment from climate activists. Greta Thunberg labelled the agreement “a disaster,” accusing world leaders of shirking responsibility. Demonstrators from movements such as Rise for Climate held protests in Brussels and outside the summit venue in Baku, expressing frustration over what they described as a failure to meet the urgency of the climate crisis.
Former US Vice President Al Gore also weighed in, stating that while the agreement “avoids immediate failure, it is far from a success.” He urged global leaders to turn “disappointment into determination” to accelerate climate action.
Key Unresolved Issues for COP30
As the conference closed, significant questions remained. Chief among them is how the $300 billion will be distributed and what proportion will go to small island states and least developed nations. Developing countries, encouraged to make voluntary contributions to the mobilisation effort, remain excluded from the primary target, a point of contention.
India has already signalled objections to portions of the text, highlighting potential roadblocks ahead of COP30, which will take place in Belém, Brazil. The broader $1.3 trillion goal for climate finance by 2035 also remains a contentious topic, particularly regarding accountability and the inclusion of indirect financial mechanisms.
Mixed Reactions from Global Leaders
US President Joe Biden welcomed the deal, describing it as “one significant step closer” to global climate goals, but acknowledged that “substantial work remains.”
In contrast, António Guterres emphasised the need for greater ambition, stating that while the deal is a starting point, it does not reflect the scale of the crisis.
For many, COP29 highlighted the persistent divide between developed and developing nations, as well as the challenges of balancing competing interests within the global climate framework. As attention turns to COP30, the need for tangible progress remains urgent, with vulnerable nations and activists pushing for stronger commitments and clearer mechanisms for implementation.
