In the early hours of Sunday morning, rich and poor nations concluded a high-stakes $1.3 trillion climate finance deal at the COP29 UN summit in Baku, Azerbaijan. The agreement, aimed at helping the developing world transition to a low-carbon economy and adapt to the devastating impacts of climate change, marks a significant milestone—but it has been met with sharp criticism.
Under the deal, developing nations are promised at least $1.3 trillion annually by 2035. However, only $300 billion of this amount will come as grants or low-interest loans from developed countries—the forms of assistance most urgently needed. The remaining funds are expected to be sourced from private investors and unconfirmed mechanisms like levies on fossil fuels or frequent flyers, which are yet to be finalized.
For many, this has sparked outrage. Mohamed Adow, director of Power Shift Africa, didn’t hold back, calling the summit “a disaster for the developing world” and accusing wealthy nations of betrayal. “Rich countries have promised to ‘mobilize’ funds in the future rather than provide them now. The cheque is in the mail. But lives and livelihoods in vulnerable countries are being lost now,” he said, highlighting the urgent need for immediate and tangible support.
The negotiations revealed deep divisions, with some of the world’s poorest and most climate-vulnerable nations advocating for more funds to come directly from developed countries. They also pushed for prioritizing finance for the most at-risk nations instead of distributing funds broadly, including to larger emerging economies like India. Despite these efforts, the final agreement fell short of meeting these demands, leaving many disillusioned.
While the $1.3 trillion target represents a substantial commitment, the reliance on private financing and unproven funding mechanisms raises concerns about whether the deal can genuinely deliver for those who need it most. As the impacts of extreme weather continue to devastate vulnerable regions, the question remains: is this agreement a step forward, or does it deepen the inequality in global climate action? Read More
News Credit: The Guardian
Picture Credit: Murad Sezer/Reuters