Climate Finance Dilemma: From Billions to Trillions

Increased climate finance for developing nations is proposed by developed countries, aiming for USD 250 billion annually by 2035. This figure falls short of the desired USD 1.3 trillion and is met with criticism. The deal emphasizes collective efforts, drawing mixed reactions from climate policy experts and observers.

As the UN climate conference drew to a close, developed nations presented a proposal to increase climate finance for developing countries to USD 250 billion per year by 2035. This sum, however, pales in comparison to the robust USD 1.3 trillion annually that developing countries have been demanding starting in 2025.

The proposed increase, unveiled in a new draft climate finance package, reflects the first concrete figures from developed nations amid two weeks of intricate negotiations. Despite pressing for collective action to generate the funds, the proposal stops short of obligating developed countries solely. Instead, it underscores cooperation from all public and private sources to meet this target.

Climate experts view the proposal as a compromise, criticizing its reliance on private sector flows and its lack of commitment to grants or low-cost finance. Analysts argue that the proposed financial commitment fails to address the pressing climate adaptation needs of developing countries.

(With inputs from agencies.)