The World Agrees to New Climate Deal at COP29

The world has agreed to a new climate deal at COP29, with wealthy countries pledging to provide $US300 billion annually by 2035 to poorer countries to help them cope with the increasingly catastrophic impacts of the climate crisis. However, many developing countries criticized this figure as vastly insufficient.

Intense Negotiations in Baku

The agreement in Baku, Azerbaijan, came after more than two weeks of bitter divisions and fractious negotiations, with boycotts, political spats, and open celebrations of fossil fuels causing chaos. There were moments of fear that the talks would implode, as groups representing vulnerable small island states and the least-developed countries walked out of negotiations. But finally, after more than 30 hours past the deadline, an agreement was reached between nearly 200 countries.

Reactions to the Agreement

• Mukhtar Babayev, the Azerbaijani state-oil company veteran and president of COP29, expressed satisfaction with the outcome.
• The $US300 billion will be allocated to vulnerable, poorer nations to help them cope with extreme weather and transition to clean energy.
  

  Mixed Reactions and Criticisms
  

  While some hailed the agreement as a step forward, others, like India’s representative Chandni Raina, criticized it as a "paltry sum" and an "optical illusion" that does not address the enormity of the climate challenge. Developing countries, in particular, expressed disappointment with the pledge.

  Financial Shortcomings
  

• The $US300 billion falls short of the $US1.3 trillion economists say is needed to help developing countries cope with the climate crisis.
• Tina Stege, Marshall Islands climate envoy, criticized the talks for showing political opportunism and failing to meet the urgent funding needs of climate-vulnerable countries.
  

  Complex Financial Dynamics
  

  The COP29 focused heavily on finance, a critical but politically challenging issue. Rich countries, responsible for historical climate change, agreed to provide $US100 billion annually by 2020, a pledge that was only met in 2022. The new deal now requires wealthy countries to provide $US300 billion every year by 2035, with a broader ambition to scale up to $US1.3 trillion.

  Developing Nations’ Demands
  

• Developing nations wanted richer countries to commit to a larger share of funding, with a preference for grants over loans to prevent further debt.
• The G77 group called for $US500 billion, but richer nations deemed it unrealistic given current economic conditions.
  

  Global Geopolitical Dynamics
  

  The agreement also encouraged richer emerging economies like China and Saudi Arabia to contribute to climate financing, though it places no obligations on them to do so. Li Shuo, director of the China Climate Hub, described the deal as a flawed compromise in the current geopolitical landscape.

  Conclusion
  

  The COP29 climate summit concluded with a mixed response, highlighting the challenges of balancing financial commitments, geopolitical interests, and urgent climate action. While progress was made, there is a clear need for increased funding and accountability to address the pressing climate crisis.

  FAQ
  

• What was the main focus of COP29?
  The COP29 summit focused heavily on climate finance, aiming to secure funding for developing countries to cope with the impacts of the climate crisis.
• Why were developing countries critical of the $US300 billion pledge?
  Developing countries criticized the pledge as insufficient to meet their urgent funding needs for climate adaptation and mitigation efforts.