November 26, 2024

Introduction:

The COP29 meeting concluded in Baku, Azerbaijan, and established a new climate finance target. This target is set at $300 billion annually for developing countries by 2035 and is known as the New Collective Quantified Goal (NCQG). This amount is three times the previous target of $100 billion. However, it falls short of the $1.3 trillion requested by developing nations.

Funding Sources

The funds will largely be provided as loans. Recipient countries will be required to repay these loans. Some loans may have lower interest rates. However, the agreement lacks specifics on concessional loans or grants.

Reactions to the Agreement

UN Climate Change Executive Secretary Simon Stiell acknowledged the compromise. He stated that no country received all its demands. The participants left Baku recognising the important work ahead. The COP29 statement called for collaboration to increase funding to $1.3 trillion annually by 2035.

Disappointment Among Developing Countries

Developing nations expressed disappointment with the $300 billion target. India’s Finance Ministry adviser, Chandni Raina, labelled it too little, too distant. Critics argue the amount does not address urgent climate challenges. Champa Patel from the Climate Group emphasised the need for transformational finance. Activist Harjeet Singh condemned the outcome for offering false hope to vulnerable nations.

Upcoming Climate Meetings

The next climate meeting, COP30, is scheduled for November 2025 in Belem, Brazil. Countries are expected to submit their first Biennial Transparency Reports (BTRs) by December 31, 2024. These reports will detail progress on climate action. Additionally, the next round of Nationally Determined Contributions (NDCs) is due by February 2025. These will outline updated climate commitments from participating nations.