In a dramatic conclusion to the high-stakes Cop29 climate summit in Baku, Azerbaijan, countries reached a landmark $1.3 trillion annual climate finance deal to support developing nations in their low-carbon transitions and climate adaptation efforts. However, the agreement drew sharp criticism from some quarters, with campaigners decrying it as a “betrayal” of the world’s poorest and most vulnerable.
A Trillion-Dollar Compromise
The Cop29 deal, hammered out in the early hours of Sunday morning after days of tense negotiations, commits to providing developing countries with at least $1.3 trillion per year in climate finance by 2035. However, only $300 billion of this will come in the form of grants and low-interest loans from wealthy nations – a key demand of poorer countries. The remainder is expected to be mobilized from private investors and potential new funding sources, such as levies on fossil fuels and frequent flyers.
According to sources close to the negotiations, the compromise deal emerged as the least-bad option in the face of bitter divisions and the looming specter of a hostile U.S. administration under newly re-elected President Donald Trump. With the U.S. poised to exit the Paris Agreement in January, many countries reportedly felt intense pressure to lock in a deal, even an imperfect one.
“A Disaster for the Developing World”
Despite the breakthrough, the outcome left a sour taste for many. Mohamed Adow of Power Shift Africa pulled no punches, calling the summit “a disaster for the developing world” and “a betrayal of both people and planet, by wealthy countries who claim to take climate change seriously.” He slammed the deal’s focus on mobilizing future funds rather than delivering them now, as the devastating impacts of climate change unfold.
“The cheque is in the mail. But lives and livelihoods in vulnerable countries are being lost now.”
– Mohamed Adow, Power Shift Africa
Adow’s sentiments were echoed by Ani Dasgupta of the World Resources Institute, who offered measured praise for the deal’s tripling of finance flows to developing nations, while acknowledging it fell short of what’s truly needed. “$300 billion…is not enough, but is an important down payment toward a safer, more equitable future,” he said.
Petrostates Play Hardball
The summit was marred by allegations of foul play by oil-rich nations, with host Azerbaijan accused of putting fossil fuel interests ahead of a robust outcome. According to one source, an Azerbaijani official even attempted to stealthily modify a key negotiating text.
Saudi Arabia also came under fire for its “obstructionist tactics” aimed at weakening language around the transition away from fossil fuels – a critical element of the Cop28 agreement secured last year. “At Cop29, they have deployed [these tactics] to dilute action on the energy transition,” said Romain Ioualalen of Oil Change International.
The Road Ahead
As the dust settles on the Baku summit, exhausted negotiators now turn to the daunting task of translating the Cop29 deal into on-the-ground action. With global emissions still rising and climate impacts accelerating, the $1.3 trillion question is whether this agreement will be too little, too late.
For the world’s most climate-vulnerable nations, Cop29 may be remembered as a bitter pill they were forced to swallow. Only time will tell if it proves to be the lifeline they so urgently need, or a poisoned chalice that leaves them shortchanged as the climate crisis deepens.
Saudi Arabia also came under fire for its “obstructionist tactics” aimed at weakening language around the transition away from fossil fuels – a critical element of the Cop28 agreement secured last year. “At Cop29, they have deployed [these tactics] to dilute action on the energy transition,” said Romain Ioualalen of Oil Change International.
The Road Ahead
As the dust settles on the Baku summit, exhausted negotiators now turn to the daunting task of translating the Cop29 deal into on-the-ground action. With global emissions still rising and climate impacts accelerating, the $1.3 trillion question is whether this agreement will be too little, too late.
For the world’s most climate-vulnerable nations, Cop29 may be remembered as a bitter pill they were forced to swallow. Only time will tell if it proves to be the lifeline they so urgently need, or a poisoned chalice that leaves them shortchanged as the climate crisis deepens.
