Historic Climate Finance Debate Heats Up at COP29

The COP29 climate summit in Baku sees intense debate over proposed $250 billion annual climate finance target by 2035. While developed nations resist the high target, developing countries demand more funding to combat climate change. A final agreement on financing and carbon markets remains uncertain.

The COP29 climate summit extended into overtime as fierce debate erupted over a draft proposal requiring developed nations to lead in providing $250 billion in annual climate finance by 2035. The draft, released by the COP29 presidency, aims to establish new rules surrounding carbon markets.

Held in Baku, divisions surfaced between wealthier nations, who are cautious about costly commitments, and developing countries advocating for larger financial aid. Concerns over the $250 billion target persisted; while some see it as insufficient, others argue it's uncomfortably high without broadening contributors.

Analysts highlight that the suggested target could be met by 2030 with modest increases. Multilateral development banks have pledged $120 billion, supplemented by $65 billion in private investment. Yet, bridging public-private financing gaps remains challenging as negotiators work towards consensus amidst urgency to address climate impacts.

(With inputs from agencies.)