A draft proposal unveiled at the United Nations climate summit (COP29) in Baku, Azerbaijan, has exposed tensions between wealthy and developing nations over climate financing.
The plan, released Friday, pledges $250 billion by 2035 from rich countries to poorer ones for adapting to climate change and curbing emissions.
While the amount surpasses a prior $100 billion annual target, it falls significantly short of the $1.3 trillion that experts estimate is required to address the climate crisis.
The proposal, led by Azerbaijan’s Deputy Foreign Minister Yalchin Rafiyev, emphasizes the need for further negotiation.
“It doesn’t correspond to our fair and ambitious goal. But we will continue to engage with the parties,” he said.
AP Photo/Peter Dejong
A ‘Slap in the Face’ for Developing Nations
The $250 billion figure has been met with sharp criticism from developing countries and climate advocates.
Mohamed Adow of Power Shift Africa called the draft “a slap in the face.”
“No developing country will fall for this,” he added. “They have angered and offended the developing world.”
Harjeet Singh, of the Fossil Fuel Non-Proliferation Treaty, labeled the sum “shameful” and accused wealthy nations of neglecting the scale of the crisis.
“It is incomprehensible that [we] receive only sympathy and no real action from wealthy nations,” said Singh.
Marshall Islands’ climate envoy Tina Stege described the proposal as a “disgrace” in light of the billions in damages caused by extreme weather and the urgent need for fossil fuel transitions.
AP Photo/Peter Dejong
What Are the Estimated Costs of Climate Damages?
Critics argue that much of the proposed funding comes in the form of loans rather than grants, which adds to the debt burdens of nations already struggling with economic instability.
Vaibhav Chaturvedi, a member of India’s Council on Energy, Environment and Water, said this proposal is basically the older $100 billion per year goal with 6 percent annual inflation.
The realistic $1.3 trillion actually required would address damages from extreme weather, adapt to climate change, and transition away from fossil fuels, with a portion of the funding expected to be raised domestically.
Any amount agreed upon at COP negotiations is typically seen as a “core” sum, intended to be mobilized or leveraged for larger climate investments. However, much of this financing is expected to come in the form of loans, further burdening nations already grappling with heavy debt.
AP Photo/Sergei Grits
Calls for Realism from Richer Counterparts
Wealthy countries have defended the draft as a practical starting point.
Switzerland’s Environment Minister Albert Rösti said, “A deal with a high number that will never be realistic, that will never be paid […] will be much worse than no deal.”
A U.S. official similarly emphasized the challenge of achieving even the proposed $250 billion target, stating, “It has been a significant lift over the past decade to meet the prior, smaller goal.”
The official noted that private finance and multilateral development banks would need to play a significant role in meeting the target.
Despite the disappointment, some negotiators see the proposal as a foundation for further progress. Melanie Robinson of the World Resources Institute called it “a good down payment” while urging richer nations to push the figure higher.
Jennifer Morgan, Germany’s climate envoy, said the text represents “at least a map on the way forward.”
“This can be a good down payment that will allow for further climate action in developing countries,” Robinson said.
This article includes reporting from The Associated Press