The European Union, the United States and other rich countries present at the COP29 summit, this Saturday (23), increased their offer of climate financing to developing countries facing climate change to US$300 billion per year, in an attempt to unlock increasingly tense negotiations, which are now in extension.
The summit was supposed to end on Friday (22), but went into overtime as negotiators from almost 200 countries – who are expected to adopt the agreement by consensus – tried to reach an agreement on a climate finance plan for the next decade.
A proposed $250 billion deal drafted by Azerbaijan’s COP29 presidency on Friday was deemed insufficient by developing countries.
Continues after advertising
It was unclear whether the revised offer from rich countries would be enough to lead to a deal, but negotiators from developing countries and island nations expressed frustration on Saturday with a process they said was not inclusive and temporarily abandoned talks.
The COP29 negotiations exposed divisions between wealthy governments constrained by tight domestic budgets and developing nations suffering from the high costs of storms, floods and droughts driven by climate change.
Past failures to meet climate finance obligations have also left developing countries wary of new pledges.
Continues after advertising
The new target aims to replace developed countries’ previous commitment to provide US$100 billion in climate finance to poorer nations per year by 2020. This target was met two years late, in 2022, and expires in 2025.
Five sources with knowledge of the closed-door discussions said the EU agreed it could accept the higher figure of $300 billion a year. Two sources said the United States, Australia and the United Kingdom were also on board.
A spokesperson for the European Commission and an Australian government spokesperson declined to comment on the negotiations. The US delegation to COP29 and the UK energy ministry did not immediately respond to requests for comment.
Continues after advertising
With no formal update on the draft COP29 presidency agreement, the atmosphere was tense among the negotiating groups.
“There is no clarity on the path forward. There is no clarity about the political will we need to get out of this,” said Panama’s chief negotiator, Juan Carlos Monterrey Gomez.
Representatives of least developed countries and blocs of small island nations left the negotiating room on Saturday afternoon frustrated with the process, but said they remained committed to finding an agreement.
Continues after advertising
“We have temporarily left, but remain interested in negotiations until we reach a fair agreement,” said LDC bloc chairman Evans Njewa in a post on X (formerly Twitter).
The Alliance of Small Island States issued a statement confirming that it has also temporarily withdrawn from the negotiation. “We want nothing more than to continue to be involved, but the process must be inclusive,” he said.
US climate envoy John Podesta said he hoped talks would move towards a deal. “I hope this is the storm before the calm,” he said.
FREE ACCESS
BONDS PORTFOLIO
