By Kei Emmanuel Duku
After two weeks of intense negotiations, delegates at COP29, the United Nations Framework Convention on Climate Change (UNFCCC), on November 24, 2024, agreed to triple the annual climate funding to developing countries from the initial $100 billion to $300 billion annually by 2035.
The new goal, which takes effect in 2026, replaces the existing annual target of $100 billion, which was met two years late in 2022 and is widely considered insufficient to meet the demands of poorer nations for shifting to clean energy and adapting to natural disasters.
The $300 billion goal, with developed countries taking the lead in providing funds and mobilizing private-sector investment, will be central to a wider effort to scale up financing to at least $1.3 trillion per year by 2035 from all public and private sources.
Speaking at the closing ceremony of the COP29 Conference in Baku, Azerbaijan, Simon Stiell, Executive Secretary of UN Climate Change, described the new deal as an “insurance policy for humanity” amid worsening climate impacts affecting every country.
However, he urged major emitters and developed nations to fulfil their promises to help least developed countries cope with the impacts of climate change.
“Like any insurance policy, it only works if premiums are paid in full and on time. Promises must be kept to protect billions of lives,” he said.
“It will keep the clean energy boom growing, helping all countries to share in its huge benefits: more jobs, stronger growth, cheaper and cleaner energy for all,” said Stiell.
The new climate finance goal agreed upon at COP29 is a significant boost to global climate action, building on the historic Loss and Damage Fund established at COP27 and the global agreement to transition away from all fossil fuels in energy systems swiftly and fairly, triple renewable energy, and boost climate resilience, which was reached at COP28 in United Arabs Emirates.
During the summit in Baku, parties also reached an agreement on carbon markets, a long-awaited development for many undeveloped nations. Under the carbon markets agreement, forest nations will be able to raise climate finance through carbon sequestration.
The UN Climate Expert noted that while the agreement reached in Baku did not meet all parties’ expectations, substantially more work is still needed next year on several crucial issues.
“We leave Baku with a mountain of work to do,” said Stiell. “The many other issues we need to progress may not be achieved here, but they are lifelines for billions of people. So this is no time for victory laps, we need to set our sights and redouble our efforts on the road to Belem.”
The new finance highlights the need for all nations to commit to stronger national climate plans by updating their Nationally Determined Contributions early next year. These plans outline countries’ strategies to reduce greenhouse gas emissions and keep global temperatures below 1.5 degrees Celsius.