Balancing Climate Finance Ambitions: COP29’s $300B Pledge

COP29 concluded with a commitment of $300 billion annually by 2035 to support developing nations in combating climate change, tripling the previous $100 billion annual pledge.

This agreement, achieved after tense negotiations in Baku, Azerbaijan, marks progress but has faced substantial criticism for being insufficient. Developing countries, particularly those most vulnerable to climate impacts, had sought $1.3 trillion annually — a figure acknowledged in principle but not operationalised in the deal. Critics argue that the funding falls short of the transformative finance needed to meet the urgency of the climate crisis.

The negotiations highlighted the complexities of balancing diverse priorities. Oil-producing countries, for instance, advocated for a pragmatic approach to transitioning away from fossil fuels, ensuring that energy security and economic stability remain intact.

As a result, while the final agreement does not explicitly advance last year’s fossil fuel transition commitments, it underscores the importance of “transitional fuels” and emerging technologies as part of the global strategy.

Key provisions in the agreement include easing access to climate funds for developing nations and reducing the debt burden associated with climate adaptation and mitigation projects which are necessary to curb the damage historically created by developed nations.

However, some delegates and activists voiced concerns over the absence of firm targets for climate adaptation or loss and damage compensation, resulting in walkouts and protests at the conference.

Despite the challenges, COP29 reinforced a collective commitment to combating climate change and set the stage for continued collaboration. Other than the focus on finance, COP29 resulted in an agreement on standards for global carbon markets, progress under transparent reporting frameworks, and enhanced gender and youth inclusion initiatives.

With that said, I think the general outcome of discussions is disappointing. The agreed figure is not only below the ask of developing countries but also falls short of the $2.4 trillion cited by many climate experts. “Baku to Belem Roadmap,” which aims to mobilise additional funding and refine implementation strategies leading into COP30, represents a significant commitment to keep an eye on as initiatives from COP28 were watered down this year. This leaves the question of whether the progress being made at COP events in their current form will enable us to achieve global climate goals or if it’s time for a different approach.

Calum