The Azerbaijani presidency at COP29 has proposed a new $250 billion annual climate finance target for developed nations by 2035, replacing the long-outdated $100 billion commitment set in 2009. While the draft marks a significant increase, it has drawn sharp criticism for falling far short of the $1.3 trillion demanded by developing nations to address the escalating climate crisis.
A New Climate Finance Target
The proposed annual target of $250 billion is dubbed the “new collective quantified goal” (NCQG), which should serve as a framework for stepping up climate finance over the next ten years. The draft can quote the “bigger goal” of $1.3 trillion as articulated by the developing countries but puts it on an aspirational pedestal without any binding obligation attached.
Framing the $250 billion as a “first reflection” of ongoing negotiations, the Azerbaijani presidency emphasized that the proposal was built on inclusive consultations:
“We gave all groups the opportunity to react to the package of texts… These texts form a balanced and streamlined package for COP29. We will further engage with Parties to collectively agree final adjustments.”
The funding is anticipated to be drawn from public, private, bilateral, and multilateral sources, with the developed countries of the United States, the EU, Japan, Canada, and Australia expected to bear the major burden of financing.
Criticism From Developing Countries
This proposal has raised an outcry among developing countries, mainly small-island states and emerging economies, whose main argument is that the set target of $250 billion in funding is not enough to mitigate the escalating impacts of climate change.
Juan Carlos Monterrey Gomez, Panama’s Special Representative for Climate Change, expressed his anger, calling the proposed target “ridiculous.”
“I’m so mad. It’s ridiculous. Just ridiculous. It feels that the developed world wants the planet to burn,” he said.
Fiji negotiator Daniel Lund echoed similar concerns, emphasizing the need for a higher target:
“It is a very low number in relation to the available evidence on the scale of the need that exists and understanding of how those needs will evolve.”
Chiara Martinelli, director of Climate Action Network Europe, also condemned the draft as insufficient :
“A target of $250 billion in annual flows by 2035, spread across all actors, is not even breadcrumbs… Rich countries must go back to the negotiation room to up their game, pay up, and deliver on true climate finance. This text is unacceptable.”
Wealthy Nations Express Reservations
While developing nations clamor for a more aggressive goal, rich countries, including the EU and the United States, have expressed reservations over the feasibility of the $250 billion proposal. A European negotiator told, “No one is comfortable with the number, because it’s high and (there is) next to nothing on increasing contributor base.
The draft does not expand the list of contributors to this end, meaning that the financial burden will continue to rest on the same group of well-heeled countries a sticking point for many.
Escalating climate stakes
COP29 is a coming negotiating session within a year likely to be the hottest ever, with weather that is extreme in every sense of the term, creating havoc worldwide. António Guterres, UN Secretary-General, insisted, “The global climate fight will be won or lost in this crucial decade,” and the urgency of robust climate finance.
In Africa, deadly floods are leaving thousands dead, while South America faces drought-induced river shrinkages. Even rich countries have not been excluded—Valencia, Spain saw deadly flooding recently, and the U.S. has already registered 24 climate-related billion-dollar disasters this year.
High-Risk Talks
This is the last day of COP29, and negotiations are building up pressure ahead of an agreement. Yet, negotiations, as witnessed at previous climate summits, at times creep beyond the set date to allow for tweaking that may be required on the draft proposal.
Whether or not the $250 billion target will prove receptive to the needs of developing countries remains to be seen. It will all come together in the final hours of the summit whether this draft proves to bridge the gap between competing expectations of developed and developing nations, or whether the world will leave COP29 without a decisive step forward in climate finance.