The COP29 climate summit at Baku, Azerbaijan ended on Sunday with nations agreeing to an annual $300 billion global climate finance target to aid poorer countries grappling with climate change impacts. While the deal was hailed as a step forward, critics called it inadequate to address the escalating climate crisis, Reuters news report said.
The agreement, reached after negotiations extending beyond the scheduled close, builds on a previous commitment of $100 billion per year, which was achieved late in 2022. The new target aims to mobilize funds from wealthy nations by 2035, a goal seen by many as a necessary yet insufficient response to global warming.
UN climate chief Simon Stiell described the deal as “an insurance policy for humanity,” emphasizing its potential to sustain clean energy transitions and protect vulnerable communities. However, he acknowledged that success depends on prompt and full funding.
India’s representative, Chandni Raina, dismissed the agreement as an “optical illusion” that fails to meet the urgency of the crisis. Several developing nations and island states shared similar frustrations, with some delegates staging walkouts during negotiations.
The summit highlighted enduring tensions over the financial responsibilities of industrialized nations. Wealthy countries, historically responsible for the majority of greenhouse gas emissions, are tasked with funding climate adaptation and mitigation in developing nations. However, tight domestic budgets in many of these countries and resistance from nations like Saudi Arabia limited the scope of commitments.
The agreement encourages but does not mandate contributions from developing countries, such as China and Gulf states, whose economic status has evolved since the original classification of developed nations in 1992.
The deal also sets a broader goal of raising $1.3 trillion annually by 2035, including public and private contributions. Plans for a global carbon market were also finalized, aimed at generating additional funds through the sale of carbon credits.
Next year’s COP30, scheduled to take place in Brazil’s Amazon region, will focus on refining strategies for reducing fossil fuel use and expanding renewable energy.
The COP29 summit occurred amid mounting evidence of climate impacts. The year 2024 is on track to become the hottest on record, with devastating floods, droughts, and extreme weather events affecting both developing and developed countries.
Despite the progress, environmentalists and vulnerable nations stressed that the gap between financial commitments and the scale of the crisis remains vast. As President Joe Biden noted, “While today’s outcome is significant, the path to achieving our climate goals demands continued and accelerated efforts.”
International Renewable Energy Agency (IRENA) Director-General Francesco La Camera highlighted the urgency of accelerating renewable energy deployment to meet the Paris Agreement goals, emphasizing the need to bridge geographic disparities in climate finance and access to green energy solutions.
La Camera, in a conversation with UN Secretary-General Antonio Guterres, has underlined IRENA’s dedication to advocating for bold climate action, stating, “Reaching an agreement at COP29 was essential to keep the 1.5°C global warming limit alive. While the financial aspirations fall short of the Paris Agreement’s requirements, the new targets acknowledge the need for collective efforts to address disparities.”
IRENA launched the World Energy Transitions Outlook 2024, providing a roadmap for countries to align energy planning with climate policies. The agency also unveiled the Climate Action Support 2024 report, which outlines strategies for enhancing and implementing Nationally Determined Contributions (NDCs).