Rich and poor countries struck a multitrillion-dollar deal on the climate crisis early Sunday morning after marathon negotiations and days of intense criticism that ended in what activists called a “betrayal.”
Developing countries will receive at least $1.3tn (£1tn) a year by 2035 to help them transition to low-carbon economies and deal with the impacts of extreme weather events.
But only $300 billion of that money will come in the form they need most: subsidies and low-interest loans from developed countries. The rest would need to come from a range of new sources, including private investors and possible taxes on fossil fuels and mileage, which have not yet been agreed.
Mohamed Addo, director of the think tank Power Shift Africa, said: [summit] It has become a disaster for developing countries. This is a betrayal of both people and the planet by wealthy countries that claim to take climate change seriously. Rich countries are pledging to “mobilize” funds in the future, rather than providing them now. The check is in the mail. But lives and livelihoods are now being lost in vulnerable countries. ”
Some of the world's poorest and most vulnerable countries are pushing hard for more funding to come directly from developed countries during two weeks of difficult negotiations at the Cop29 United Nations summit in Azerbaijan's capital Baku. fought. They also wanted available funds to go more to countries that needed it most, rather than distributing it to larger emerging economies such as India.
Two groups of particularly vulnerable countries, the Alliance of Small Island States and the Least Developed Countries, walked out of the meeting in protest late Saturday afternoon, but later returned.
The talks were high-stakes from the start, as they began just days after Donald Trump was re-elected as US president. President Trump intends to pull the United States out of the Paris Agreement when he takes office in January, and is likely to be hostile to providing climate finance to developing countries.
Faced with the prospect of another meeting next year under President Trump's White House, many countries decided that failing to agree on a new fiscal settlement in Baku was too risky.
Developed countries argued that their budgetary constraints prevented them from making further proposals. One negotiator noted that if the United States fails to contribute to climate finance in the future, “we bear all the risks.”
Many developing countries, including India, Bolivia, Cuba, and Nigeria, reacted furiously to the deal.
Environmentalists also denounced the deal. “Rich countries have spent 150 years occupying the world's atmospheric space, 33 years fighting climate change, and three years negotiating,” said Claudio Angelo of Brazil's Observatory de Clima. [a financial settlement] without showing the numbers. Now, with the help of an incompetent cop-president and using the upcoming Trump administration as a threat, they are offering developing countries deals that not only don't actually provide new funding, but may increase their debt. is forcing acceptance of ”
India's last-minute objections failed to prevent Azerbaijan's Environment Minister Mukhtar Babayev and the police commissioner from giving in. The country said it was “unacceptable” to the settlement proposal.
The host nation was heavily criticized for its police management. Oil and gas account for 90% of Azerbaijan's exports, and fossil fuels were a major focus of the talks.
After newsletter promotion
Saudi Arabia also played a highly obstructive role, according to many insiders. In one unusual development, Saudi officials attempted to change one of the key documents without sufficient consultation. The petrostates have also repeatedly tried to remove references to the “transition away from fossil fuels” agreed at last year's Cop28 summit.
“It was clear from day one that Saudi Arabia and other fossil fuel producers intended to do everything in their power to undermine the landmark Cop28 agreement on fossil fuels. “They have deployed obstructionist tactics to weaken the country,” said Roman Iuualalen of the pressure group Oil Change International.
The world's two largest economies and the largest emitters of greenhouse gases, the United States and China, are typically the leading countries at the annual Conference of the Parties (COP) under the United Nations Framework Convention on Climate Change. However, neither played much of a public role in Baku, allowing other countries to drive negotiations. The U.S. delegation remains comprised of officials from President Joe Biden's administration, but their participation is clouded by the impending inauguration of President Donald Trump.
The deal means China will voluntarily contribute to climate finance for the poorer world, unlike rich countries that are required to provide cash.
“Despite significant headwinds, Baku negotiators at least triple climate finance flowing to developing countries,” said Ani Dasgupta, CEO of the World Resources Institute, a US-based think tank. We have finalized an agreement.” [from a previous longstanding goal of $100bn a year]. The $300 billion goal is not enough, but it is an important down payment toward a safer and more just future. The agreement recognizes how important it is for vulnerable countries to improve access to finance without burdening them with unsustainable debt. ”
