At the COP29 summit in Baku, developing countries called for up to $900 billion in public funding from developed nations as part of a new climate finance package. The funds would reduce emissions and help vulnerable countries adapt to climate change‘s growing impacts.
The demand is central to UN climate talks, as nations seek to address climate challenges and fulfill long-standing financial commitments.
Developing Countries Demand Substantial Funding
According to the Press Trust of India, representatives from the Like-Minded Developing Countries (LMDC) group have requested $600 billion in public funding, with the remaining funds coming from private finance at concessional rates. This brings the total requested climate finance package to $1.3 trillion.
The Alliance of Small Island States (AOSIS) seeks $900 billion in government funding, and the Arab Group proposes $440 billion. However, developed nations, including the EU, remain cautious and are still evaluating the package.
At a press conference, Diego Pacheco, lead negotiator for the LMDC group, responded sharply to reports that European Union nations were discussing a global climate finance target of $200 billion to $300 billion per year.
Also read: Fresh Proposals on Climate Finance Targets Released at COP29
Growing Demands for Public Funding
Developing nations require $1.3 trillion annually to combat the global issue, 13 times the $100 billion promised in 2009. The burden on impacted countries increased when developed nations met the $100 billion objective in 2022, but most of the funds were loans. Representing more than 130 nations, the G77 bloc is adamant that the next climate financing draft includes a trillion-dollar headline. It emphasizes that public budgets, not private sector donations, should provide most of the money.
Tension Over Private and Public Sector Roles
Developing countries argue that relying heavily on private sector contributions prioritizes profit over pressing climate issues. The US and EU, on the other hand, support a global investment objective that incorporates international, private, and public sources.
Richer countries like China and Gulf states, formerly regarded as developing, are also encouraged to contribute. Developing countries see this as an effort to shift responsibility for historical emissions onto nations that industrialized more recently.
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A Standoff at COP29
As COP29 continues, developing and developed nations are at odds over the climate finance package, with key issues unresolved. Developing countries stress the importance of funding for survival, while developed nations weigh their commitments and emerging economies’ roles. The outcome will impact global climate finance and vulnerable nations’ ability to combat climate change.