COP29 climate talks end with $300 billion annual pledge

Rich nations pledged to contribute at least $300 billion annually to the global fight against climate change. Developing nations, who had sought over $1 trillion in assistance, argued it did not give them the vital resources they required to truly address the complexities of the climate crisis.

After two weeks of intense negotiations, delegates at COP29, formally the 29th Conference of Parties to the UN Framework Convention on Climate Change (UNFCCC), agreed to provide this funding annually, with an overall climate financing target to reach “at least $1.3 trillion by 2035”.

Countries also agreed on the rules for a UN-backed global carbon market. This market will facilitate the trading of carbon credits, incentivizing countries to reduce emissions and invest in climate-friendly projects.

Other steps forward at COP29 included:
– extension of a programme centered on gender and climate change; and,
– agreement on support for the least developed countries to carry out national adaptation plans.

This summit had been dubbed the ‘climate finance COP’, and representatives from all countries were seeking to establish a new, higher climate finance goal.

The target, or new collective quantified goal (NCQG), will replace the existing $100 billion goal that is due to expire in 2025.

Reacting to the outcome, UN Secretary-General António Guterres said that while an agreement at COP29 was absolutely essential to keep the 1.5-degree limit alive, “I had hoped for a more ambitious outcome – on both finance and mitigation – to meet the great challenge we face.”

But he continued, “this agreement provides a base on which to build and added: It must be honoured in full and on time. Commitments must quickly become cash. All countries must come together to ensure the top-end of this new goal is met.”