Fortunes and Frictions at COP29: A Billion-Dollar Climate Conundrum

The COP29 summit, tangled with political tension, aims to chart a path towards $1 trillion in climate finance. Argentina's withdrawal adds strain, while developed nations and multilateral banks weigh their fund pledges. The former $100 billion goal expires, leaving delegates scrambling for alternatives amidst international discord.

As the COP29 summit unfolds, representatives are grappling with stark political divides while trying to secure up to $1 trillion in climate finance for vulnerable nations. Argentina's last-minute withdrawal from the event in Baku has underscored underlying tensions, casting a shadow over proceedings already marked by geopolitical discord and climate policy disagreements.

At the heart of the summit is the debate on a new financial target post-2023, as the existing $100 billion annual pledge expires. Economists have highlighted the pressing need for an annual boost to $1.3 trillion by 2035 if substantial action is not taken immediately. Many wealthy countries, however, arrived with reluctance to increase commitments.

Amidst these controversies, multilateral development banks are pledging to raise their climate financing significantly, amid fears of a potential U.S. funding withdrawal. Meanwhile, internal disputes surface, like France's decision to skip the event amid allegations against Azerbaijan. Such issues could hinder critical negotiations necessary for achieving climate goals.

(With inputs from agencies.)