All countries have rejected a draft on climate finance, plunging COP29 into turmoil. This draft failed to resolve how much-developed nations will commit to developing countries annually starting in 2025.
The draft was released early Thursday and did not satisfy UN climate convention signatories. Nevertheless, the COP29 presidency stated the draft was preliminary and encouraged countries to offer bridging proposals. They anticipate a revised draft by Thursday night, aiming for a leaner text with specific figures to foster consensus.
Developed countries have been evasive about their financial commitments. Developing nations insist they need at least USD 1.3 trillion yearly—13 times more than the USD 100 billion pledged in 2009—to address escalating challenges.
While no official figures have been proposed, European Union negotiators hinted at discussing a target between USD 200 billion and USD 300 billion annually. However, Colombian Environment Minister Susana Muhamad criticized the lack of substantive commitments, accusing developed nations of prioritizing geopolitics over genuine support, sparking applause during her speech at the plenary.
The G77, representing over 130 developing nations, emphasized the importance of setting a clear financial target at the conference. Adonia Ayebare, chair of the G77, criticized attempts to redefine the climate finance package as a broader investment goal drawing from various sources, including the private sector.
Speaking for the Like-Minded Developing Countries group, Diego Pacheco expressed disappointment over the draft’s lack of specified targets for funding mobilization. Similarly, Ali Mohamed, chair of the African Group of Negotiators, lamented the omission of specific financial commitments, stating that establishing a clear target is central to the conference’s goals.
EU climate chief Wopke Hoekstra described the draft as “imbalanced, unworkable, and unacceptable.” Juan Carlos Monterrey Gomez from Panama countered developed nations’ criticisms of the USD 1.3 trillion proposal as “extreme and unreasonable” by comparing it to the USD 7 trillion spent on fossil fuel subsidies, highlighting the discrepancy in financial priorities.
Developing nations are pressing for direct public funding from developed countries, rejecting reliance on the private sector, which they argue prioritizes profit over accountability. Meanwhile, the US and EU advocate for a broader investment goal that includes multiple funding sources and urges wealthier nations like China and Gulf states to contribute, despite their classification as developing countries in 1992.
This year’s UN climate talks centre around establishing a new climate finance goal (NCQG) to help developing countries mitigate and adapt to climate change. While developed nations only achieved their previous USD 100 billion target in 2022—two years late and mostly through loans- developing countries now demand that most of the funding come directly from developed countries’ budgets.
