COP29 proposes $250B investments in developing countries, falling short of expectations

COP29 declaration proposed that developed nations provide $250 billion annually to support climate-friendly initiatives in developing countries by 2035.

This figure, outlined in the second draft text released by the COP29 Presidency, falls significantly short of the $1 trillion in annual funding demanded by developing nations to address climate change challenges.

The draft also set a broader target of $1.3 trillion in annual climate financing by 2035, to be sourced from both public and private sectors.

This target aligns with economists’ recommendations, which state that developing countries need access to at least $1 trillion per year by 2030 to meet climate goals.

Delegates from developed nations argued that the trillion-dollar target by 2035 should be met through “all sources, including domestic resources.”

This implies that developing nations would also be expected to partially finance the transitions required to combat climate change.

One of the most contentious issues during the negotiations was whether wealthier developing nations, such as China and the Gulf countries, should contribute to the financing goals.

United Nations Secretary-General António Guterres, following his return to Baku from the G20 meeting in Brazil, urged intensified efforts to reach an agreement. “Failure is not an option,” Guterres vowed.