Climate Finance Breakthrough: COP29 Secures $300 Billion for Developing Nations

Wealthy nations at the COP29 summit have committed to raising $300 billion annually by 2035 to support developing countries in combating climate change. Previously, a $250 billion proposal was deemed insufficient. Discussions continue on fund distribution and contribution responsibilities from affluent countries and emerging economies like China.

In a significant development at the COP29 summit, wealthy countries, including the European Union, the U.S., Australia, and Britain, have agreed to increase climate financing to $300 billion annually by 2035, sources revealed to Reuters. This decision aims to aid developing nations in their struggle against climate change, after a previous offer of $250 billion was criticized for being inadequate.

The agreement emerged after intense negotiations, where nearly 200 countries strove to reach a consensus on climate funding for the next decade. A central point of contention remains the distribution and terms of the funding, such as the ratio of grants to loans and which countries should contribute. Notably, voices calling for contributions from global powers like China and affluent Gulf states are growing louder.

As delegates await a new draft text of the deal, the urgency of securing adequate climate finance remains palpable. The recent political changes in the U.S. and the rich nations' constrained budgets underscore the complexities of finalizing this agreement. Despite these challenges, the proposed funding level marks a step forward from previous commitments, offering hope of a stronger global response to the climate crisis.

(With inputs from agencies.)