Landmark $300bn for poorer nations in COP29 climate deal

Key Aspects of the Agreement

The agreement includes:

• Rich countries offering $300 billion out of the $1.3 trillion a year needed from their own coffers.

• The rest of the funding to come from other sources including potential new taxes and private investors.

• Poor countries arguing that this is too little, and relying on loans or the private sector would push them further into debt.

Reaction from World Leaders

Ed Miliband, the UK energy secretary, cancelled his flight home and vowed to stay as long as it took to get a deal. Eamon Ryan, Ireland’s environment minister, stated that “it has been the fossil fuel interests that want to maintain the status quo. But the vast majority of the world recognise the status quo endangers us all.”

Criticism from World Leaders

Saudi Arabia was widely accused of disrupting the talks throughout, and in an extraordinary development attempted to alter one key text without full consultation. The host country, Azerbaijan, also came in for fierce criticism for its handling of the negotiations.

Rich countries want to offer only about $300 billion out of the $1.3 trillion a year needed from their own coffers, with the rest to come from other sources including potential new taxes and private investors.

Poor countries said this was too little, and relying on loans or the private sector would push them further into debt. Ali Mohamed, Kenya’s climate change envoy, representing the African group of negotiators, said grants and loans at very low interest rates from developed countries should make up $600 billion of the money needed. “Anything lower than that will not help the world tackle climate change,” he said.

Background on Climate Finance Negotiations

Climate finance negotiations have been ongoing at the COP29 summit, with rich countries resisting increasing their contributions to poor countries that are bearing the brunt of global heating. The talks dragged on late into Saturday night as rich and poor countries fought over how much cash was needed, and who should pay.

Quotes from Key Figures

Romain Ioulalaen, of the pressure group Oil Change International, stated that “Saudi Arabia and other fossil fuel-producing countries were going to do everything in their power to weaken the landmark Cop28 agreement on fossil fuels.” Harjeet Singh, global engagement director for the Fossil Fuel Non-Proliferation Treaty Initiative, said that “the deal must deliver a transformative scale of finance that prioritises the urgent needs of communities bearing the brunt of the escalating climate crisis.”

Context

The COP29 summit is part of the UN Framework Convention on Climate Change. The US and China, the world’s two biggest economies and biggest emitters of greenhouse gases, are key nations at the annual conference but did not play a significant public role in Baku.

Reaction from World Leaders Continued

It was clear from day one that Saudi Arabia and other fossil fuel-producing countries were going to do everything in their power to weaken the landmark Cop28 agreement on fossil fuels. At Cop29, Ed Miliband, the UK energy secretary, cancelled his flight home and vowed to stay as long as it took to get a deal.

“I’ve always said there is a will to get a deal but we need to find a way,” he told the Observer. “It is in our national self-interest to work with others and tackle the climate crisis and I will stay as long as there is a chance to get an agreement.”

The host country, Azerbaijan, also came in for fierce criticism. Much of the practical responsibility for running the negotiations falls to the host presidency, such as ensuring that drafts of a possible deal are properly consulted on, and helping countries quickly identify their areas of common ground and disagreement, to craft a coherent package of measures.

Eamon Ryan, Ireland’s environment minister, told the Observer: “It has been the fossil fuel interests that want to maintain the status quo. But the vast majority of the world recognise the status quo endangers us all.”

Demonstrators push for climate finance at the COP29 UN climate summit in Baku, Azerbaijan, on Saturday.