COP29 Agrees to Triple Climate Finance for Developing Nations

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COP29,Climate Finance,Developing Countries

The UN Climate Change Conference (COP29) concluded in Baku, Azerbaijan, with a significant agreement to triple public finance for developing countries to help them combat climate change and benefit from the global energy transition. The agreement aims to increase annual public finance to $300 billion by 2035, up from the previous goal of $100 billion. This landmark deal represents a major step forward in global climate action, acknowledging the urgent need to support developing nations in their efforts to adapt to and mitigate the impacts of climate change.

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Known formally as the New Collective Quantified on Climate Finance , it was agreed upon after two weeks of intensive negotiations and several years of preparatory work, in a process that requires all nations to unanimously agree on every word of the agreement. The new finance goal at COP29 builds on strides forward on global climate action at COP27, which agreed to an historic Loss and Damage Fund, and COP28, which delivered a global agreement to transition away from all fossil fuels in energy systems swiftly and fairly, triple renewable energy and boost climate resilience.

Sierra Leone Environment and Climate Change Minister Jiwoh Abdulai said the full funding was needed immediately. COP29 also reached an agreement on carbon markets — which several previous COPs had not been able to achieve. These agreements will help countries deliver their climate plans more quickly and make faster progress in halving global emissions this decade, as required by science. However, Stiell said the agreement did not meet all parties’ expectations, and more work is needed next year on crucial issues.

On country-to-country trading, the decision out of COP29 provides clarity on how countries will authorise the trade of carbon credits and how registries tracking this will operate. There is now reassurance that environmental integrity will be ensured upfront through technical reviews in a transparent process.

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