The first week of COP29 concluded with no significant breakthroughs, as divisions between developed and developing nations slowed progress. Key issues like climate finance, trade measures, and equity in climate action remain unresolved.
Climate Finance at the Heart of Disagreements
India, representing the G-77/China and BASIC blocs, demanded accountability from wealthier nations on unmet financial commitments. The G-77/China bloc called for $ 1.3 trillion in climate finance annually. They emphasized the need for grants and concessional funding, arguing that loans place undue pressure on developing economies already struggling with climate impacts.
An Indian negotiator said loans make up nearly 70% of climate finance provided so far, which is unacceptable. The negotiator urged developed nations to move away from debt-inducing financing mechanisms.
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Urgency and Geopolitical Tensions
UN Executive Secretary Simon Stiell urged G20 countries to take stronger action. He warned that without such action, no economy in the group would be immune to climate-driven economic losses. Despite his call for solidarity, the deadlock persisted.
Cosima Castle from E3G, a climate diplomacy organization, acknowledged the challenges posed by geopolitical tensions. However, she highlighted the potential for progress at the upcoming G20 Leaders’ Summit in Rio de Janeiro. Castle emphasized that the G20 countries, responsible for 80% of global emissions and 85% of the world’s economy, could unlock ambitious climate agreements.
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Disputes Over Carbon Border Adjustment Mechanism (CBAM)
The European Union’s Carbon Border Adjustment Mechanism (CBAM) also sparked sharp debates. India and other developing nations criticized the measure for unfairly penalizing their economies. They argued that CBAM shifts the responsibility for climate action onto nations with minimal historical emissions.
A negotiator from Bolivia echoed these concerns, stating that CBAM undermines industrial growth in developing countries.
Technology Transfer and National Sovereignty
Technology transfer also emerged as a contentious issue. Developing nations pushed for a robust technology implementation program with dedicated financial support. An Indian negotiator said, “Without equitable access to climate technologies, the promises of the Paris Agreement will remain unfulfilled.”
India also opposed external regulations on its climate targets, asserting that mitigation efforts should align with Nationally Determined Contributions (NDCs) and respect national sovereignty.
Calls for Action from Vulnerable Nations
The Alliance of Small Island States (AOSIS) and the Arab Group joined India in stressing the disproportionate impact of climate change on vulnerable populations. They demanded greater financial and technological support.
The BASIC countries—Brazil, South Africa, India, and China—also criticized developed nations for shifting additional obligations onto emerging economies.
COP29’s Last Week
The negotiations in Baku have made it clear that a comprehensive climate finance package is urgently needed. This package must address both mitigation and adaptation.
Gillian Hamilton from South Africa emphasized her country’s commitment to debt relief and reforms in multilateral financial systems. South Africa is expected to play a crucial role in bridging gaps between developed and developing countries when it assumes the G20 presidency in 2025.
As COP29 enters its second week, negotiators face uncertainty about whether the summit will produce actionable outcomes. With COP30 in Brazil next year, the outcomes from Baku will likely set the tone for future global climate negotiations.
