November 26, 2024
BAKU – Developing nations and countries most vulnerable to climate change impacts walked away from the 29th Conference of Parties (COP29) disillusioned, as the long-awaited climate finance discussions yielded only a fraction of the funding they had demanded.
The summit, dubbed as the “Finance COP”, was expected to set ambitious new climate finance goals to replace the expired USD 100 billion annual climate finance pledge. However, the final agreement fell short of the funding target.
The developing nations had called for USD 1.3 trillion annually for climate mitigation, adaptation, and loss and damage by 2035. But the deal that emerged late on November 22 was a far cry from that demand. Wealthy nations agreed to provide USD 300 billion per year starting in 2035, with a vague promise to work together to scale up financing toward the USD1.3 trillion goal.
Even the deal for USD 300 billion did not come easy. It was a hard-fought compromise that took 36 hours longer than expected.
The delegates from least-developed and island nations, frustrated by the amount, walked out of the negotiations, unwilling to settle for less. The talks continued for two more grueling days, with tension mounting in the negotiation halls.
As frustration reached a boiling point, protesters rallied outside the venue, demanding that the Global North pay up and that financial commitments match the scale of the climate crisis.
The delegates from developing countries said that the promised funding for mitigation and adaptation fell far short of the Paris Agreement’s goal to cap global warming at 1.5°C. “Worse, it leaves the world’s most vulnerable to bear the cost of inaction in what is shaping up to be Earth’s hottest year on record.”
At the COP29 plenary hall, Indian delegate Chandni Raina voiced strong opposition during the closing session, minutes after the USD 300 billion deal was finalised. “I regret to say that this document is nothing more than an optical illusion,” she said. “In our opinion, it fails to address the enormity of the challenge we all face. Therefore, we oppose its adoption.”
While the financial deal may have disappointed many, there were some notable developments at COP29. One breakthrough was the full operationalisation of the ‘Loss and Damage Fund’, a financial mechanism created to help vulnerable countries cope with the adverse effects of climate change.
This Fund, which was first established at COP27, was long awaited by developing nations, and was decided for operation in COP28 and its full operationalisation at COP29 marked a step forward in supporting communities facing irreversible environmental damage.
Another breakthrough of COP29 is the full operationalisation of Article 6 of the Paris Agreement on carbon markets, outlining mechanisms for countries and companies to trade emission reductions in order to prevent additional carbon from entering the atmosphere.
Bhutan, in particular, has been eyeing carbon markets at COP29, having already signed a deal with Singapore to sell carbon credits.
Speaking at the World Bank pavilion in COP29, Prime Minister Tshering Tobgay emphasised the critical role carbon markets played in climate strategy, allowing Bhutan to secure sustainable, non-debt funding to support conservation efforts. “Our partnerships with global leaders like the World Bank and Singapore are examples of how economic resilience and environmental stewardship could advance hand in hand.”
The Prime Minister also said that Bhutan’s approaches demonstrated the transformative potential of high-integrity carbon markets in addressing the global climate challenge.
As COP29 concludes, all eyes turn to COP30, which will be held in Belém, Brazil, in November 2025.
Brazil’s hosting of COP30 will bring focus to the Amazon rainforest’s critical role in climate mitigation and biodiversity conservation. With Brazil’s environmental leadership dating back to the 1992 Rio Summit, which established key global frameworks like the UN Framework Convention on Climate Change, there is hope that COP30 will drive more ambitious action.
This story is produced as part of the COP29 Climate Change Media Partnership, a journalism fellowship organised by Internews’ Earth Journalism Network and the Stanley Center for Peace and Security.