Poorer nations say the deal arranged at COP29 is nothing more than lip service despite it being the biggest financial package ever agreed.
COP29 closed in Baku with a “breakthrough” on climate finance, setting a new global goal to help vulnerable nations tackle climate disasters and share in the benefits of clean energy.
The New Collective Quantified Goal on Climate Finance (NCQG) will triple annual funding to developing countries from $100bn to $300bn ( £245bn) by 2035. It also sets a more ambitious target to mobilise $1.3 trillion per year from public and private sources by the same date.
Simon Stiell, UN Climate Change Executive Secretary, called the agreement a critical milestone: “This new finance goal is an insurance policy for humanity amid worsening climate impacts. But like any insurance, it only works if premiums are paid in full and on time.”
However, developing nations are leaving Baku disgruntled and frustrated with a drawn-out process, which over ran and fell massively short of the $1 trillion figure in grant-based climate finance they were aiming for.
The deal is just 30% of the resources demanded by developing nations and the amount is expected to have a significant decrease by 2035 due to inflation.
The deal includes loans, despite the recognition of the need for grants.
Harjeet Singh, Global Engagement Director, Fossil Fuel Non-Proliferation Treaty Initiative summed up criticism: “At COP29, developed nations once again coerced developing countries into accepting a financial deal woefully inadequate to address the gravity of our global climate crisis.
“The outcome offers false hope to those already bearing the brunt of climate disasters and abandons vulnerable communities and nations, leaving them to face these immense challenges alone.”
But the UNFCC defended the achivements of this COP, where major leaders were absent, saying the deal builds on past achievements, including the Loss and Damage Fund from COP27 and commitments at COP28 to phase out fossil fuels.
By 2025, all countries must submit updated national climate plans (NDCs), covering all greenhouse gases and sectors.
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