COP29 – Developing Countries to Receive $300 Billion Annually for Climate Action

Developing countries will receive $300 billion annually from wealthy nations to combat climate change, as agreed upon by participants at the COP29 climate summit held in Baku. The agreement, reached late Saturday night, marks a $200 billion increase in funding compared to the previous commitment.

Prolonged Negotiations Lead to Agreement

Originally, the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) was scheduled to conclude on Friday, November 22. However, disagreements prolonged the discussions until the early hours of Sunday.

Dispute Over Funding Levels

The most contentious issue was determining how much wealthier nations—responsible for the largest carbon dioxide emissions—should allocate to support developing countries. A Friday proposal of $250 billion annually was rejected by representatives of the Global South, who walked out in protest, demanding $1.3 trillion annually. Following difficult negotiations, a compromise of $300 billion per year was reached, effective until 2035. The current funding mechanism, which provides $100 billion annually, expires in 2025, necessitating the new agreement.

Carbon Credits Legalized

“This COP29 will be remembered as the start of a new era in climate financing. The EU will continue to lead,” stated European Commissioner Wopke Hoekstra, who participated in the talks in Baku. He emphasized that the summit delivered an ambitious and realistic goal with a broader base of contributors. “With this funding and structure, we are confident we will reach $1.3 trillion,” he added.

The summit also introduced a mechanism allowing wealthier countries to offset their emissions by financing reductions that exceed targets in other nations. This development legalized the controversial concept of carbon credits, which had been debated for years.

Source: pap