A deal reached at United Nations climate talks in Azerbaijan will increase the amount of money that many polluters provide to help poor nations transition to clean energy and adapt to global warming. The main points of the agreement reached on COP 29 in Baku are as follows:
300 billion dollars
According to the structure established by the United Nations in 1992, the 23 developed countries and the European Union, which are responsible for the most global heat emissions, are responsible for the most heat emissions on earth, and they should provide at least 300 billion US dollars annually in the agreement.
The Baku Agreement revised the earlier proposal of $100 billion to require developed countries to provide at least $300 billion annually by 2035. In the previous agreement, 100 billion US dollars was proposed. But this amount is also much less than the demand (500 billion dollars) made by some developing countries in the talks held in Baku. It is mentioned in the agreement that this amount will come directly from ‘various sources’ including government budget, private sector investment and other financing.
It also cites ‘alternative sources’ such as the aviation and maritime industries, and references to potential global taxes under discussion in wealthy nations. The trust agreement mentions that money from developed countries will also help boost private investment to reach the ambitious target of disbursing at least $1.3 trillion per year over the next decade. Experts appointed by the United Nations have said that the amount is needed by 2035.
“With these funds and this structure, we will reach our objective of collecting and disbursing €1.3 trillion in climate finance,” EU Climate Commissioner Opke Hoekstra told fellow COP 29 delegates.
China’s role
The United States and the EU have pushed to expand the donor base to include developing but now wealthy countries such as China and Saudi Arabia. But China, the world’s second largest economy and greenhouse gas emitter, has been refusing to change its position, recalling that it has already provided bilateral aid.
The agreement states that developed countries will ‘take the lead’ in providing US$300 billion. This post encourages developing countries to make ‘voluntary contributions’. In the agreement, climate finance provided by developing countries like China through multilateral development banks will be counted towards the target of 300 billion dollars.
Hoekstra said, “This is a matter of fairness and importance for us. Everyone who has the ability to help should contribute.” He added, “So considering the size of the problem, we better expand the contributor base on a voluntary basis.”
part of fund
The talks were also a scene of disagreement in the developing world. Although the Alliance of Small Island Nations (AOSSIS) has demanded 39 billion US dollars, this figure does not appear to be included in the final agreement. Instead, it has been demanded that other public funds received by 2030 should be tripled.
The next COP conference in Brazil in 2025 is expected to issue a report on how climate finance can be scaled up for these countries.
