The upcoming UN COP29 climate talks in Azerbaijan are sparking controversy over climate finance, particularly in relation to funding from developed and developing countries. The disagreement stems from the commitment made by developed countries in 2009 to provide $100 billion annually by 2020 to help developing nations transition away from fossil fuels and adapt to the impacts of climate change.
However, the target was missed, and the new fund expires after 2025, leading to discussions on a new, larger fund during the talks in Baku. Developing countries are calling for more contributions from wealthy nations, while developed countries are considering additional mechanisms like private sector involvement and levies on polluting industries.
China’s classification as a developing country despite being the world’s largest polluter and second-largest economy is a point of contention. China already contributes to climate finance voluntarily, but there are calls for more equitable distribution based on wealth and historical emissions. The US-China geopolitical tensions further complicate the negotiations, especially with the potential impact of the US election on climate finance commitments.
The talks in Baku will be challenging, with disagreements over donor countries, timelines, and funding amounts. Developing nations are pushing for a significant increase in funding to address climate change impacts, but the road ahead is fraught with obstacles. The outcome of the negotiations will determine the future of climate finance and the global response to the climate crisis.
