Tensions are running high at the COP29 climate summit in Baku, Azerbaijan as negotiations over crucial climate finance hit a major roadblock. Activists are now urging developing countries to reject what they call an “unacceptable” and “insulting” offer from wealthy nations and consider walking out of the talks.
Developing Nations Slam $250bn Climate Finance Proposal
At the heart of the impasse is a proposal from developed countries to provide $250 billion per year in climate finance to developing nations by 2035. The offer is meant to help poorer countries transition to clean energy and adapt to worsening climate impacts.
However, the proposal has been met with fierce criticism from developing country blocs and civil society organizations. They argue the amount falls far short of what is needed and fails to account for the “loss and damage” already being experienced by vulnerable nations.
This is unacceptable. The proposed $250bn a year by 2035 is no floor, but a cap that will severely stagnate climate action efforts.
Alliance of Small Island States
Campaigners warn that finance at the proposed levels would not enable developing countries to decarbonize their economies fast enough to keep global warming within 1.5°C, the most ambitious target of the Paris Agreement. Many are now calling the offer a “profound disrespect” to those on the frontlines of the climate emergency.
Calls for Walkout Grow as Talks Drag On
As negotiations stretched late into Friday night with no resolution in sight, talk of a coordinated walkout by developing country delegations began to build. Activists argue that at this stage, no deal would be preferable to the current finance proposal.
This is a shameful failure of leadership… No deal would be better than a bad deal.
Safa’ Al Jayoussi, Oxfam International
The contentious talks have also reignited a broader debate about which countries should be considered “developing”. Several delegates, including those from the European Union, have argued that China and India should no longer fall under this category given the size of their economies and emissions.
But while pressure mounts on major emerging economies to increase their climate ambition and support, experts stress this cannot come at the expense of much-needed finance for the world’s poorest and most vulnerable.
The High Stakes of COP29
Many had hoped that COP29 would build on the modest progress made at last year’s climate summit in the UAE, where countries agreed to a historic deal to establish a fund for loss and damage. But as the talks in Baku near their end, the prospect of a major breakthrough on finance appears increasingly dim.
For developing countries already grappling with the devastating effects of climate change, from searing heatwaves to rising seas, the stakes couldn’t be higher. Without adequate international support, they warn, their ability to pursue sustainable development and adapt to a warming world will be severely compromised.
As negotiators work around the clock to salvage a deal, all eyes are on the world’s wealthiest nations to significantly increase their finance pledges. But with trust eroding between developed and developing countries, many fear the window for ambitious action is rapidly closing.
The Road Ahead
Even if countries manage to reach a deal in Baku, it’s clear that the current pace and scale of climate finance is not sufficient to meet the enormous challenges ahead. Experts estimate that developing nations will need trillions of dollars per year to fully green their economies and build resilience—a figure that dwarfs the sums currently on offer.
As the devastating impacts of the climate crisis continue to mount, the fight for climate finance is emerging as a defining struggle of our time. The question now is whether the international community can summon the political will to meet the moment before it’s too late.
With COP29 negotiations going down to the wire, the world watches anxiously to see if a new chapter in climate action and solidarity can still be written—or whether the talks will collapse under the weight of mistrust and division. For vulnerable communities on the frontlines of the crisis, everything hangs in the balance.
