COP29 tries to cash in: Proposes rich countries pay $250 billion annually for climate funding

The Azerbaijani president of COP29 proposed that rich countries allocate $250 billion annually to the "climate finance" of developing nations. The exuberant figure, more than double the current commitment, is the first formal figure proposed after two weeks of discussions and was presented just hours before the official close of the summit.

According to the information, the amount currently set (2020-2025 period) of $100 billion falls short of the demands of developing countries, who have asked for more ambitious contributions.

The project also seeks to reach a global target of $1.3 trillion annually by 2035, including private contributions and new financing mechanisms.

Demands and tensions in negotiations

The proposal comes after protracted consultations into the early hours of Friday morning after widespread rejection of the previous draft. The G77+China group had demanded at least $500 billion annually by 2030, while AILAC nations, Africa and vulnerable islands are demanding a global fund of $1.3 trillion.

Panama's AILAC negotiator, Juan Carlos Monterrey Gomez, said, "All we are asking for is only 1% of global GDP. Is that really asking too much to save lives?"

Activists and delegates have condemned blocks by rich countries, historically the biggest polluters. "It seems more like a geopolitical game than a real solution," criticized Susana Muhamad, Colombia's environment minister.

The agreement signed at COP28 to accelerate the energy transition appears to have stalled. "It is disappointing to see blocks around an issue that had already been agreed upon," lamented Raquel Soto, vice minister of Peru.

However, in the halls of the conference, criticism of the organization prevails: "This is the worst COP in recent years," said Mohamed Adow, of Climate Action Network.