BAKU. A $300-billion annual climate finance deal aimed at helping developing nations cope with climate change impacts has been finalized at the COP29 summit in Baku. However, recipient nations have criticized the agreement as inadequate, exposing deep divisions between wealthy and developing countries on climate responsibility.
The deal, finalized after two weeks of intense negotiations and overtime discussions, aims to provide $300 billion annually by 2035, significantly increasing the previous $100 billion annual target set for 2020. United Nations climate chief Simon Stiell described the agreement as “an insurance policy for humanity against global warming,” but cautioned, “like any insurance policy, it only works if the premiums are paid in full and on time.”
While some delegates gave a standing ovation in the COP29 plenary hall, others were less optimistic. Chandni Raina, an Indian delegate, called the agreement “nothing more than an optical illusion,” stating, “This, in our opinion, will not address the enormity of the challenge we all face. Therefore, we oppose the adoption of this document.”
Tina Stege, the Marshall Islands’ climate envoy, echoed similar sentiments: “We are leaving with a small portion of the funding climate-vulnerable countries urgently need. It isn’t nearly enough, but it’s a start.”
The agreement also received criticism for lacking detailed steps to phase out fossil fuels or triple renewable energy capacity—a goal pledged during last year’s climate summit. U.S. climate adviser John Podesta pointed to Saudi Arabia’s role in blocking ambitious measures, saying, “There’s definitely a challenge in getting greater ambition when you’re negotiating with the Saudis.”
The deal sets a broader goal of mobilizing $1.3 trillion annually by 2035, encompassing public and private funding, but stops short of mandating contributions from developing nations, including China and Gulf states.
Donald Trump’s recent election victory has further clouded the U.S.’s role in fulfilling its commitments. President Joe Biden congratulated COP29 participants for reaching a “historic agreement” but acknowledged the need for further action. “Today’s outcome puts us one significant step closer. On behalf of the American people and future generations, we must continue to accelerate our work to keep a cleaner, safer, healthier planet within our grasp,” Biden said in a statement.
The COP29 summit took place in a year predicted to be the hottest on record, with global warming continuing to rise. A U.N. report estimates that current trajectories could lead to a 3.1°C (5.6°F) temperature increase by the century’s end, far exceeding the 1.5°C target set by the Paris Agreement.
Meanwhile, climate disasters have worsened worldwide, with floods, droughts, and landslides devastating communities. Even wealthy nations have suffered, as seen in recent deadly floods in Spain and a record number of billion-dollar climate disasters in the U.S.
The summit concluded with a sense of urgency to map out more concrete actions at next year’s COP30 summit in the Amazon rainforest, where nations are expected to outline the next decade of climate action.
