Countries Remain Divided on COP29 Finance Goal, Reports Reuters

By Kate Abnett

BRUSSELS – As the COP29 UN climate negotiations approach, with less than three months remaining, countries are still struggling to reach a consensus on the summit’s primary objective: establishing a new funding target to assist developing nations in addressing climate change.

A negotiation document released by the U.N. climate body revealed the divisions among nations ahead of a forthcoming meeting in Baku next month, where delegates will seek to progress on the most contentious issues.

The document outlines seven different proposals that represent varying national positions for a potential agreement at COP29. This new target is intended to replace the existing commitment from wealthier nations to provide $100 billion annually in climate finance to developing countries.

Many vulnerable and developing nations are advocating for a significantly higher funding goal. Conversely, donor countries, such as Canada and those within the European Union, argue that the constraints of national budgets render a substantial increase in public funding impractical.

"We have made progress, but there are clearly still differing positions that we need to reconcile," stated incoming COP29 summit president Mukhtar Babayev. Babayev, Azerbaijan’s minister of ecology and natural resources, indicated that the COP29 presidency would facilitate focused negotiations on the financing goal before the summit in November.

One proposal in the document suggests that developed countries should provide $441 billion each year in grants, aiming to mobilize a total of $1.1 trillion in funding from all sources, including private investment, on an annual basis from 2025 to 2029. This option aligns with the perspective of Arab nations.

Another proposal, which reflects the EU’s negotiating stance, sets a broader climate funding target exceeding $1 trillion each year. This figure encompasses domestic investments and private funding, with a portion designated for countries identified as “high greenhouse-gas emitters” and possessing significant economic resources.

The EU has called for China—currently the largest emitter of greenhouse gases and the second-largest economy—to contribute to this new climate funding initiative. However, China maintains its classification as a developing country under a framework established in the 1990s, rejecting the notion that it should be obligated to fund climate finance, which is predominantly provided by wealthier nations to poorer ones.

Negotiators anticipate that the debate over who should contribute will pose one of the most significant challenges to finalizing a funding agreement at COP29. Another option presented in the document, reflecting Canada’s viewpoint, proposes that the contributors to the target be determined based on per-capita emissions and income, potentially including nations such as the United Arab Emirates and Qatar.