By: Jacob Kim
The COP29 climate summit in Baku, Azerbaijan, has gone into overtime after a contentious $250 billion annual climate finance proposal failed to gain consensus. With a broader goal of raising $1.3 trillion annually by 2035, the summit is mired in disagreement between developed and developing nations over the responsibility and scale of financial contributions needed to combat climate change.
The proposed draft, spearheaded by the Azerbaijani COP29 presidency, suggests developed nations take the lead in providing $250 billion per year to aid poorer countries. However, this figure has faced criticism from all sides. Developing nations argue that the amount is insufficient to meet the escalating impacts of climate change, while wealthier nations find the target too high without broader participation from countries like China and Brazil.
Panama’s climate representative, Juan Carlos Monterrey Gomez, decried the proposal as woefully inadequate, accusing developed nations of neglecting their historical responsibility. Conversely, a European negotiator expressed concern over the draft’s lack of a mechanism to increase contributions from more countries.
Adding to the uncertainty, the incoming U.S. administration under President-elect Donald Trump has vowed to withdraw from international climate agreements, raising fears that the world’s largest historical emitter may undermine collective efforts.
The summit’s urgency is underscored by a year destined to be the hottest on record. Climate-related disasters, including deadly floods in Africa and landslides in Asia, have devastated vulnerable communities, while even wealthy nations like the U.S. and Spain have faced catastrophic weather events.
The current $100 billion annual climate finance commitment ends in 2025, leaving developing nations vulnerable without a new deal. The broader $1.3 trillion target, encompassing public and private funding, aligns with economists’ recommendations but remains far from realization.
UN Secretary-General Antonio Guterres, returning from the G20 summit in Brazil, has warned that failure at COP29 is not an option. With time running out, negotiators are tasked with bridging the divide to ensure a deal that reflects the scale of the climate crisis.
As talks continue, the stakes are clear: without a robust financial framework, the world risks falling further behind in its efforts to combat global warming, leaving vulnerable nations bearing the brunt of the climate emergency.
Sources
Energy Outlook 
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