Developed countries will have to \u201ctake the lead\u201d in delivering the USD 300 billion but the target, known as the New Collective Quantified Goal (NCQG), will include finance from international institutions such as the World Bank. The agreement also encourages developing nations such as China to make voluntary contributions \u201cthrough South-South cooperation\u201d.<\/p>\n\n\n\n
However, the deal has been met with huge disappointment from developing countries and campaigners, who had been calling for firmer commitments<\/a>, including as much as USD 1.3 trillion directly from developed nations.<\/p>\n\n\n\n \u201cI regret to say that this document is nothing more than an optical illusion,\u201d Indian delegation representative Chandni Raina said at the closing plenary after the finance target was approved. \u201cThis, in our opinion, will not address the enormity of the challenge we all face. Therefore, we oppose the adoption of this document.\u201d<\/p>\n\n\n\n In their final hours, the climate talks in Baku were on the brink of collapsing, with two negotiating blocs \u2013 the Least Developed Countries (LDC) and Alliance of Small Island States (AOSIS) \u2013 temporarily walking out of negotiations. Consensus was finally reached after the initial proposal of USD 250 billion was increased.<\/p>\n\n\n\n UN Secretary General Antonio Guterres said in a statement that he had \u201choped for a more ambitious outcome\u201d but that it \u201cprovides a base on which to build\u201d. <\/p>\n\n\n\n German foreign minister Annalena Baerbock echoed Guterres and said the USD 300 billion \u201cwon\u2019t meet all the needs\u201d and that they will work to reach the USD 1.3 trillion figure. \u201cNobody forgot about our historic responsibilities,\u201d she added.<\/p>\n\n\n\n Developed countries are dealing with economic and political constraints, from limited budgets to rising populist movements opposed to climate action, and this was seen as influencing the COP. \u201cWe live in times where multilateralism seems impossible,\u201d Baerbock said. During the COP talks, the election of Donald Trump as the next president of the US<\/a> raised doubts over whether the country would contribute to the finance target, given Trump\u2019s withdrawal of the country from the Paris Agreement during his previous term and continued posturing against climate action.<\/p>\n\n\n\n The promised funding falls short of the USD 5 trillion to USD 6.8 trillion<\/a> total that developing countries will reportedly need by 2030 to implement their climate plans. Countries have also asked for climate finance to come in the form of grants, as loans contribute to their debt burdens. While the agreement recognises the need for public, grant-based funds, it does not require a commitment.<\/p>\n\n\n\n \u201cThis has been the most horrendous climate negotiation in years due to the bad faith of developed countries,\u201d said Tasneem Essop, Executive Director of Climate Action Network (CAN), in a concluding statement after the final plenary. \u201cThis was meant to be \u2018the finance COP\u2019, but the Global North turned up with a plan to betray the Global South.\u201d<\/p>\n\n\n\n As well as finance, another major point of contention during the summit was how to boost efforts in the global energy transition. At last year\u2019s COP28, countries agreed<\/a> to transition away from the use of fossil fuels in their energy systems and to triple renewables. However, in Baku, they could not decide on how to progress the pledge, with discussions pushed to next year.<\/p>\n\n\n\n No mention of fossil fuels or the decision from COP28 was made in the text of the Mitigation Work Programme<\/a> \u2013 a non-binding process to enhance climate action \u2013 nor in the text of the NCQG. Previous drafts had included proposals to expand energy storage to 1,500 gigawatts by 2030 and to expand power grids by 25 million kilometres by 2030.<\/p>\n\n\n\n Negotiators from Saudi Arabia told the plenary that they \u201cwould not accept any text that targets any specific sectors including fossil fuels\u201d. A Saudi delegate even tried to alter one text without consultation, The Guardian reported<\/a>. US climate advisor John Podesta described attempts to encourage Saudi ambition in this regard through negotiations as \u201ca challenge\u201d.<\/p>\n\n\n\n Campaigners and prominent voices at the summit were critical of this stalling over commitments to end fossil fuel use. \u201cOil-rich countries must see that their efforts to delay the inevitable will fail. The green energy transition has gained unstoppable momentum,\u201d said Mary Robinson, former president of Ireland and chair of The Elders group. Tracy Carty, Climate Politics Expert at Greenpeace International, said the fossil industry \u201chas been spared any responsibility to pay.\u201d<\/p>\n\n\n\n COP29 also saw countries reach a deal on carbon markets, which may eventually lead to country-to-country carbon trading and the creation of a regulated global market. Proponents describe<\/a> carbon trading as a necessary tool in attempts to avoid global warming of over 1.5C, while critics<\/a> argue these schemes do not actually contribute to cutting emissions.<\/p>\n\n\n\n The mechanism had been formally included in the 2015 Paris Agreement, but its implementation has been the subject of a protracted debate at COPs in the years since. Now, countries and companies will be authorised to trade credits that represent one tonne of CO2 saved or removed from the atmosphere, with details still to be finished in 2025.<\/p>\n\n\n\n \u201cThe UN has given its stamp of approval to fraudulent and failed carbon markets. We have seen the impacts of these schemes: land grabs, and violations of Indigenous peoples and human rights,\u201d said Kirtana Chandrasekaran, a campaigner at Friends of the Earth International. \u201cThe supposed \u2018COP of climate finance\u2019 has turned into the \u2018COP of false solutions\u2019\u201d.<\/p>\n\n\n\n China\u2019s contributions and responsibilities towards the NCQG came under scrutiny at COP29 as delegates navigated fraught discussions on climate finance.<\/p>\n\n\n\n On the second day of the summit, Chinese Vice Premier Ding Xuexiang highlighted<\/a> that since 2016, China has provided and mobilised over CNY 177 billion (approximately USD 24.5 billion) in project funding to support other developing countries in addressing climate change.<\/p>\n\n\n\n However, calls for China to shoulder greater financial responsibility have grown louder. Several delegates argued<\/a> that classifications dating back to 1992, which label China as a developing nation, are outdated. New analysis by Carbon Brief estimated<\/a> that China\u2019s historical emissions have caused more warming than the combined emissions of the 27-member European Union, further fuelling arguments that China should contribute more as a global economic powerhouse.<\/p>\n\n\n\n China has resisted these pressures. Zhao Yingmin, head of the Chinese delegation, told the media<\/a> that it is neither legal nor reasonable for some countries to refuse to recognise that China is a developing country, and that this undermines the mutual trust and cooperation between the contracting parties.<\/p>\n\n\n\n He sought to emphasise<\/a> that all negotiations must follow the terms of the Paris Agreement, which imposes financial obligations only on developed country parties, but encourages other parties to provide support voluntarily: \u201cChina\u2019s South-South cooperation is voluntary, contrasting with the mandatory obligations of developed nations.\u201d<\/p>\n\n\n\n Li Shuo, director of the China Climate Hub at the Asia Society Policy Institute, warned<\/a> that pushing China to contribute to climate finance on the same basis as developed nations could be counterproductive. “That would risk harming trust and reinforcing divisions,” he said, advocating for a focus on unity and pragmatic collaboration instead.<\/p>\n\n\n\n Meanwhile, the apparent absence of US leadership in climate action has left a significant gap, which China\u2019s climate envoy Liu Zhenmin described<\/a> as \u201cirreplaceable\u201d. He suggested that the European Union could partially step into this role and take the lead in leading developed countries to make financial commitments, but that multilateral mechanisms remain the core of addressing the climate crisis for the next four years. The prospect of joint leadership between China and the EU is \u201coptimistic but challenging to achieve\u201d, he said. <\/p>\n\n\n\n True to previous form<\/a>, Latin America did not appear to be unified on its priorities at COP29.<\/p>\n\n\n\n For Paraguay, Argentina, Uruguay and Brazil, the role of agriculture<\/a> was high on the agenda, with delegates dismissing the sector\u2019s carbon footprint and questioning trade measures such as anti-deforestation regulations<\/a>, particularly from the European Union. \u201cWe reduced the emissions of cattle, showing sustainability and productivity are compatible,\u201d claimed Uruguay\u2019s environment minister Robert Bouvier.<\/p>\n\n\n\n Meanwhile, for Colombia, the energy transition and the debt crisis of developing countries were the priority issues. Its environment minister, Susana Muhamad, stayed for the full two weeks of the summit. \u201cCountries agreed to work on how to get to USD 1.3 trillion, including instruments such as global taxes. These could help countries with high levels of debt to raise capital to do an energy transition,\u201d Muhamad said.<\/p>\n\n\n\n The outcome of the NCQG was largely questioned by leaders from the region. Diego Pacheco, Bolivia\u2019s leading delegate, said developed countries \u201cpressure developing countries for more ambition while they expand fossil fuels plans\u201d. Instead of climate finance, he said developed countries give \u201cillusions, smoke and mirrors\u201d, describing the new finance target as \u201can insult\u201d to the developing world.<\/p>\n\n\n\n Panama\u2019s special representative for climate change, Juan Carlos Monterrey G\u00f3mez, struck a similar tone: \u201cI think the 1.5C [global warming target] was at the intensive care unit, and it feels like that bed just broke and it fell on the floor. So, we\u2019re probably not going to be able to reach 1.5C based on this very low level of finance being provided.\u201d<\/p>\n\n\n\n With a finance target agreed \u2013 albeit contentiously \u2013 countries will face the task of increasing their climate ambition next year with the presentation of their new climate change plans, or Nationally Determined Contributions (NDCs). These are expected to be ready before the next climate summit, COP30, to be hosted by Brazil in November 2025, in the Amazon city of Bel\u00e9m<\/a>.<\/p>\n\n\n\n The world is currently on track for 3.1C of global warming by the end of the century based on countries\u2019 current pledges, according to the UN Emissions Gap Report<\/a>, while scientists are \u201cvirtually certain<\/a>\u201d that this year will be the hottest on record. This happens as countries deal with escalating climate impacts, including floods, droughts and heatwaves.<\/p>\n\n\n\n![\"Simon](\"https:\/\/dialogue.earth\/content\/uploads\/2024\/11\/Simon-Stiell-and-Antonio-Guterres-at-COP29_Kiara-Worth_UN-Climate-Change_05a5f1ba00.jpg\")
<\/div>Fossil fuels and carbon markets<\/h2>\n\n\n\n
Oil-rich countries must see that their efforts to delay the inevitable will fail<\/blockquote>Mary Robinson, former president of Ireland<\/cite><\/div><\/div>\n\n\n\n
![\"A](\"https:\/\/dialogue.earth\/content\/uploads\/2024\/11\/One-of-the-agreements-signed-at-COP29_Kiara-Worth_UN-Climate-Change_b5f2640fc5.jpg\")
<\/div>China\u2019s climate finance<\/h2>\n\n\n\n
Latin America at COP29<\/h2>\n\n\n\n
![\"People](\"https:\/\/dialogue.earth\/content\/uploads\/2024\/11\/Final-Plenary-COP29_Vulgar-Ibadov_UN_Flickr_54161423629.jpg\")
<\/div>The road to COP30 in Brazil<\/h2>\n\n\n\n