Finance deal remains elusive at Cop29 as UN climate talks stretch into overtime
Negotiations at the Cop29 summit in Azerbaijan have surpassed their scheduled timeframe, with countries working round the clock to establish a deal on climate finance. The patience of attendees in Baku appears to be wearing thin as talks hit a deadlock on Saturday, nearly 24 hours after the summit’s original end date. Despite the Cop29 presidency setting a plenary hearing for Saturday evening for countries to present their final views on a draft deal, little progress has been made on key issues like the allocation of public finance from richer nations to support those impacted by climate change and strategies to reduce emissions.
As tensions heightened on Saturday, temporary structures around the Olympic Stadium, where the summit took place over two weeks, were being dismantled. The host Azerbaijan presidency released a new draft agreement on Friday that showed promise of a compromise. The draft outlined specific figures for climate finance, including a target of $250 billion in public funds and a broader aim of $1.3 trillion, encompassing various financial mechanisms, to be directed towards developing nations annually by 2035. Analysts argue that at least $1 trillion per year is required in all forms of finance by 2030 to meet the goals set in the 2015 Paris Agreement.
Progress was made on carbon markets, with a near-consensus reached on trading rules and the establishment of a regulated global market to aid in achieving international climate objectives. However, discussions stalled on critical issues like the final finance amount and commitments to phase out fossil fuels, leading to intense debates among parties. Developing economies, notably, pushed for a comprehensive target of $1.3 trillion annually from 2025 to 2035, with significant emphasis on public finance support. German climate envoy Jennifer Morgan expressed dissatisfaction with the current text, stating that it fails to address the varied interests of different nations.
Disagreements also emerged over the contribution to climate finance, with developed nations calling for high-emitting developing countries like the Gulf states and China to share the financial burden. The reaffirmation and enhancement of commitments made in Cop28 to transition away from fossil fuels emerged as another contentious topic, drawing resistance from oil-rich countries such as Saudi Arabia. Activist Greta Thunberg criticized Cop29 as a failure, denouncing the latest draft as inadequate and filled with ineffective measures and unmet promises. She highlighted the absence of funds from developed nations to redress their climate debt obligations.
UK Energy Secretary Ed Miliband acknowledged the challenges in negotiations, likening them to a complex game of chess but remained optimistic about reaching a favourable agreement. Advisors appointed by the UN endorsed the proposed $1.3 trillion yearly target as aligned with the Paris Agreement goals, although they deemed the $250 billion public finance sub-goal for 2035 insufficient. Environmental groups raised concerns over the inadequacy of the proposed climate finance package, emphasizing the urgency for more substantial commitments to address the impacts of climate change, particularly in developing nations.
With final-stage negotiations underway, anticipations are high for potential conflicts as parties strive to reconcile disparate viewpoints. The urgency to bridge gaps on critical issues like finance allocation and emissions reduction underscores the gravity of the situation at Cop29. The outcome of the climate talks will not only shape international efforts to combat global warming but also determine the level of support extended to vulnerable nations facing the brunt of environmental challenges. Stay tuned for further updates as negotiations continue towards a resolution at the UN climate summit in Azerbaijan.