COP29 Climate Summit: Nations Struggle to Reach Trillion-Dollar Finance Agreement
The COP29 climate summit in Azerbaijan is supposed to conclude tomorrow, but the latest draft of a climate pact has failed to break an impasse over money, with time running out for nations to reach a long-sought trillion-dollar finance agreement.
Unacceptable Draft
The UN climate summit in Azerbaijan has been ongoing for over a week, with nearly 200 countries in attendance. However, the latest draft of the climate pact has only underlined divisions as nations return to the negotiating table. EU climate commissioner Wopke Hoekstra called the draft "clearly unacceptable" and said there is "not a single ambitious country that thinks this is nearly good enough."
Target for Climate Finance
The nearly 200 countries in Baku are supposed to agree on a new target to replace the US$100 billion a year that rich nations pledged for poorer ones to fight climate change. Many developing countries are pushing for US$1.3 trillion, mostly from government coffers, though wealthy nations have balked at such demands and insisted private money helps meet any final goal.
Key Sticking Points
The latest draft recognises that developing countries need a commitment of at least "USD [X] trillion" per year, leaving out the crucial exact figure sought in Baku. Ali Mohamed, the chair of the African Group of Negotiators, said the "elephant in the room" was the missing concrete number. Other key sticking points – including who contributes and how the money is raised and delivered – were left unresolved in the slimmed-down 10-page document.
Negotiations Advancing
However, Ireland’s climate minister Eamon Ryan insisted negotiations on finance were "advancing" in backroom discussions. "This text is not the final text, that is clear. It will be quite radically different. But I think there is room for further agreement," he told AFP. Norway’s climate minister also offered a rosier view: "The deadline isn’t here yet."
Two Extreme Ends
The draft entrenches the broad and opposing positions of developed and developing countries. Developed countries want all sources of finance, including public money and private investment, counted toward the goal, and for wealthy countries not obligated to pay, like China, to chip in. Developing countries want the money to mostly come from rich government budgets in the form of grants or money without strings attached, not loans that add to national debt.
An Insult
Hoekstra said the European Union still needed clarity over what elements in the deal would be counted toward the eventual finance goal. "I’m sorry to say, there’s a lot of work ahead for us, for the presidency, for all parties involved," he said. The EU and the US, two of the biggest providers of climate finance, have resisted pressure to put a figure on the table until the shape of the deal was clearer. "The fact there is no number specified for the climate finance goal is an insult to the millions of people on the frontlines bearing the brunt of climate change impacts," said Greenpeace’s Jasper Inventor.
Conclusion
The COP29 climate summit is expected to conclude tomorrow, but the latest draft of the climate pact has failed to break an impasse over money. With time running out, it remains to be seen if nations can reach a trillion-dollar finance agreement. As the deadline approaches, countries will need to come together to find a solution that meets the needs of developing countries and addresses the global climate crisis.
Frequently Asked Questions
- What is the current deadlock in the COP29 climate summit?
The latest draft of the climate pact has failed to break an impasse over money, with developing countries pushing for US$1.3 trillion and wealthy nations resisting such demands. - What are the key sticking points in the negotiations?
The exact figure for climate finance, who contributes, and how the money is raised and delivered are the main points of contention. - How much money do developing countries need to address climate change?
By 2035, developing countries excluding China are estimated to need US$1.3 trillion a year in outside financial assistance to reduce emissions and build resilience to climate change. - What is the deadline for the COP29 climate summit?
The summit is expected to conclude tomorrow, but the deadline may be extended if a deal is not reached.