COP29: Countries agree on $300 billion annual climate finance to help poor nations  

Countries at the COP29 climate summit in Baku have adopted a global finance target of $300 billion annually by 2035 to help poorer nations manage the impacts of climate change.

However, the deal, struck after extended negotiations, has been met with mixed reactions, with some calling it a significant step and others deeming it inadequate for addressing the climate crisis.

The deal aims to increase financial support to vulnerable nations, building on the previous $100 billion annual commitment, which was met late in 2022 and set to expire in 2025.

It was intended to help nations combat climate impacts like storms, floods, and droughts, exacerbated by industrialized countries’ historical greenhouse gas emissions.

While some delegates celebrated the agreement as a victory for global climate cooperation, others criticised it as insufficient.

A representative of the Indian delegation, Chandni Raina, while speaking on behalf of India, described the deal as an “optical illusion,” arguing it fails to address the scale of the crisis.

“I regret to say that this document is nothing more than an optical illusion. This, in our opinion, will not address the enormity of the challenge we all face.  

“Therefore, we oppose the adoption of this document,” he said.

However, United Nations climate chief Simon Stiell acknowledged the difficult negotiations that led to the agreement but hailed the outcome as an insurance policy for humanity against global warming.

“It has been a difficult journey, but we’ve delivered a deal. This deal will keep the clean energy boom growing and protect billions of lives,” Stiell said.

“But like any insurance policy, it only works if the premiums are paid in full, and on time,” he added.

The deal also lays the groundwork for next year’s climate summit, to be held in the Amazon rainforest of Brazil, where countries are meant to map out the next decade of climate action.

The group of countries required to contribute to climate finance—comprising around two dozen industrialised nations, including the U.S., Canada, and European countries—was originally determined during U.N. climate talks in 1992.

Additionally, countries agreed to establish rules for a global carbon credit market. This initiative aims to generate billions of dollars for climate projects, such as reforestation and the deployment of clean energy technologies, by allowing the buying and selling of carbon credits.