At the COP29 climate summit in Baku, wealthy nations, including the United States and the European Union, have proposed raising annual climate finance to $300 billion by 2035 in a bid to secure consensus on a global funding plan. The offer follows backlash from developing nations, who dismissed a previous $250 billion proposal as inadequate. Negotiators from nearly 200 countries are locked in extended talks, aiming to bridge deep divides over climate funding and the future of global climate action.
This revised target, significantly higher than the $100 billion goal set for 2020 (achieved only in 2022), underscores the widening rift between industrialized nations and developing countries. Wealthy governments are grappling with domestic budget constraints, while poorer nations demand robust support to combat the escalating costs of climate-induced disasters. Delegates anxiously await a fresh draft agreement, as negotiations hinge on finalizing both the funding amount and its distribution mechanisms.
Critical questions remain unanswered, including which nations will contribute to the fund and whether financing will primarily come in the form of grants or loans. European nations have urged countries like China and oil-rich Gulf states to contribute, arguing that the donor list from 1992 is outdated. Meanwhile, the recent election of Donald Trump in the U.S., who has openly dismissed climate change, casts uncertainty over America's participation in future funding commitments.
Developing countries have warned that inadequate financial support would severely hamper their ability to implement ambitious climate goals. Sierra Leone's Environment Minister Jiwoh Abdulai called the initial $250 billion proposal a "non-starter" when adjusted for inflation and demanded stronger guarantees for easier access to funds. The bloc of least-developed nations has threatened drastic measures, including walking out of the summit, if their demands are not met.
Amid the high-stakes negotiations, broader ambitions to mobilize $1.3 trillion annually by 2035—combining public and private sources—remain under discussion. However, developing nations caution that failure to secure a fair finance deal could undermine global efforts to combat climate change, exposing the fractures in international solidarity at a time of urgent need.
