BAKU: A proposed $250 billion annual climate finance commitment by wealthy nations at COP29 for developing countries has sparked widespread outrage. Activists and negotiators argue the pledge falls far short of addressing the scale of the global climate crisis, calling it ‘inadequate’ and ‘insulting’.”
They argue that the figure falls far short of what is needed to address the devastating impacts of climate change, particularly in vulnerable regions like Africa.
The draft finance proposal, released by the COP29 presidency on Friday, outlines that wealthy nations would provide $250 billion per year by 2035 to help poorer countries mitigate the effects of climate change and transition to greener economies.
While this represents a significant increase from the $100 billion per year originally agreed upon in 2009, critics argue that the amount is still grossly inadequate when adjusted for inflation and the escalating climate crisis.
The new target “is totally unacceptable and inadequate”, Ali Mohamed, chair of the African Group of Negotiators told AFP. “$250 billion will lead to unacceptable loss of life in Africa and around the world, and imperils the future of our world,” he said.
Fadhel Kaboub, Senior Advisor for Climate Finance and Just Transitions at the think tank Power Shift Africa, called the proposal “an insult,” pointing out that after adjusting for inflation, the $250 billion is effectively 30% less than what was pledged 15 years ago. “This shows how unserious the historic polluters are about climate action,” he said in an interview with Al Arabiya English.
The issue of climate finance has been one of the most contentious topics at COP29.
Developing countries have long demanded that wealthier nations, historically responsible for the majority of global emissions, take greater financial responsibility for climate mitigation and adaptation in the Global South.
The $250 billion figure, while a step up from previous commitments, is still far from what many believe is necessary.
Jasper Inventor from Greenpeace described the $250 billion offer as “inadequate, divorced from the reality of climate impacts, and outrageously below the needs of developing countries.”
He stressed that the funds should be allocated in a way that addresses the urgent needs of nations already grappling with the worst effects of climate change.
However, not everyone shared the same grim assessment. Avinash Persaud, special advisor on climate change to the president of the Inter-American Development Bank, suggested that the talks were moving in the right direction.
“What the Global South was suggesting was $1.3 trillion per year of high-quality, impactful, transformative climate finance. Instead, we wait until the very last week, and what we get is $250 billion of mobilized money — not even provided money,” he said. The term “mobilized” refers to private sector contributions, which many activists argue may not be reliable or sufficient.
The draft proposal also sets an ambitious overall target to increase global climate finance to at least $1.3 trillion per year by 2035.
This target, however, would rely heavily on contributions from both developed countries and the private sector. The proposal suggests that multilateral development banks (MDBs) and businesses, alongside governments, would play key roles in meeting the goal.
In an interview, German Foreign Minister Annalena Baerbock acknowledged the challenges in meeting such commitments, particularly as Europe prepares for elections next year.
“We need answers that match the reality of the world we live in. Vulnerable states must have access to financing, and emerging economies must also benefit,” she said.
Jasper Inventor from Greenpeace called the $250 billion offer “inadequate, divorced from the reality of climate impacts and outrageously below the needs of developing countries”.
But Avinash Persaud, special advisor on climate change to the president of the Inter-American Development Bank, said that the offer showed the talks were “within sight of a landing zone” for the first time.
“What the Global South was suggesting was $1.3 trillion per year of high-quality, impactful, transformative climate finance. Instead, we wait until the very last week, and what we get is $250 billion of mobilized money — not even provided money. ‘Mobilized,’ meaning it’s mostly going to be the private sector,” Kaboub told Al Arabiya English.
However, the United States hinted that it was not looking to negotiate a higher figure. President-elect Donald Trump will take office in two months and is likely to pull the world’s largest economy again out of climate diplomacy.
A senior U.S. official described the $250 billion goal as ambitious, but emphasised that it would need to be supported by efforts to mobilise private finance and contributions from multilateral development banks.
Brazil, which will host COP30, has proposed a higher number based on a report by an expert financial panel appointed by the United Nations Secretary-General Antonio Guterres Brazil’s Environment Minister Marina Silva proposed $300 billion annually until 2035, with the figure increasing to $390 billion per year thereafter.
