The coming hours will reveal whether this is enough to placate developing countries and small-island states.
The Azerbaijani presidency of the COP29 climate talks has finally put a figure on the level of financing the developing world might expect from rich countries to fund their transition to clean energy and adapt to increasingly extreme weather and sea-level rise.
After an initial proposal for a ‘new collective quantified goal’ (NCQG) – at the core of nearly two weeks of fractious debate in the capital Baku – the new text, hammered out behind closed doors overnight, proposes a figure of $250bn to replace by 2035 a current $100bn contribution from rich countries that was set back in 2009.
That sum should come from “a wide variety of sources, public and private, bilateral and multilateral, including alternative sources” and would include direct provision of finance such as grants, and private sector investment that such support is expected to mobilise.
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What is in the COP29 draft deal?
Throughout a week of debate at the political and ministerial level, developing countries – which China continues to self-identify as, despite the EU and others insisting the donor base needs to be broadened – have staunchly insisted on a goal of $1.3 trillion a year.
The new text recognises this figure only as an aspirational goal, as it “calls on all actors to work together to enable the scaling up of financing to developing country Parties for climate action from all public and private sources to at least USD 1.3 trillion per year by 2035”.
It “invites developing country Parties to make additional contributions”, in line with earlier signals from the European Commission that extending the donor base to emerging economies – one of the bloc’s key demands – could be done on a voluntary basis.
The coming hours will reveal whether this is enough to placate developing countries and small-island states who roundly rejected a first draft of a political agreement yesterday, slamming rich countries for their reluctance up to that point to name a figure even as a basis for further negotiation.
‘Extensive and inclusive consultation process’
In a statement the Azerbaijani Presidency says the new climate finance text is the result of a consultation that stretched into the early hours of the morning – and offers a “balance and streamlined” way forward.
They said they “gave all groups the opportunity to react to the package of texts we released yesterday morning and we thank them for their constructive engagement.”
“These texts form a balanced and streamlined package for COP29. The COP29 Presidency urges Parties to study this text intently, to pave the way towards consensus, on the few options remaining.
“We will further engage with Parties to collectively agree final adjustments to the few outstanding yet important issues,” the statement continues.
There has been criticism of the COP presidency throughout the talks for the country’s deep ties with the fossil fuel industry.
