Countdown to COP29: Unresolved Funding Targets for Climate Finance

With the COP29 climate summit approaching, countries remain divided on setting new funding targets to support developing nations affected by climate change. The U.N. proposes various options, but achieving consensus remains challenging, especially regarding which countries should contribute and how much.

With COP29 just around the corner, the international community remains at an impasse over establishing a new funding target to aid developing countries in coping with climate change.

A U.N. document reveals the divisions between nations, outlining seven options for COP29, expected to replace the current $100 billion commitment from wealthy nations. Vulnerable countries demand higher funding, yet donor nations, citing budget constraints, deem a significant increase unrealistic.

Among the options is a proposal for developed nations to provide $441 billion annually in grants, aiming to mobilize $1.1 trillion from all sources by 2025-2029. The divide remains pronounced, with the EU advocating over $1 trillion yearly, involving contributions from major polluters like China. China, categorized as a developing country by the UN, resists this notion, posing a critical challenge to reaching an agreement.

Canada's stance introduces another option based on per-capita emissions and income, potentially extending contribution responsibilities to countries like the UAE and Qatar. The outcome of COP29 negotiations will hinge on reconciling these varied perspectives.

(With inputs from agencies.)