By Alex Adi
In a landmark, yet contentious agreement, wealthy nations have committed to providing $300 billion annually to developing countries to combat the escalating threats of climate change. The deal was finalized by negotiators more than 30 hours after the scheduled closing of COP29 in Baku, Azerbaijan.
However, the agreed-upon amount has been met with widespread disappointment from developing nations, who deem it inadequate and have threatened to boycott future climate summits. Furthermore, the negotiations failed to build momentum on last year’s pivotal agreement to transition away from fossil fuels, leaving many to question the progress made towards a sustainable future.
A dramatic walkout by negotiators from vulnerable nations, including least-developed countries and small island states, preceded the final climate finance deal at COP29. These nations vehemently opposed the initial $250 billion proposal, deeming it grossly inadequate to address climate-related losses and damages. The newly minted deal promises $300 billion annually, sourced from government grants, private sector investments, and contributions from banks and businesses.
This funding aims to facilitate a global shift from fossil fuels to renewable energy. Notably, nations have acknowledged that a far more substantial investment of $1.3 trillion is required by 2035 to effectively combat climate change. This urgent call to action is underscored by the fact that 2024 is poised to be the warmest year on record, marked by devastating heatwaves and storms. UN Climate Change Executive Secretary Mr Simon Stiell aptly described the deal as an “insurance policy” that only delivers when premiums are paid in full.
Countries have reached a landmark agreement on Article 6, a crucial component of the 2015 Paris Agreement. This provision enables the creation of international carbon markets, allowing nations to trade carbon credits and work collaboratively to reduce greenhouse gas emissions. In essence, Article 6 facilitates a system where countries can offset their emissions by investing in projects that reduce greenhouse gas emissions elsewhere.
The recent two-week summit also delved into various pressing topics, including Gender and Climate Change, National Adaptation Plans, Transparent Climate Reporting, Food Systems and Climate Action, Education and Climate Action, as well as Science and Technology to track climate changes and prevent devastating impacts.
