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Climate Finance Negotiations at COP29: Key Points

As the COP29 climate talks in Baku near their conclusion, a critical issue remains unresolved: the financial commitments from wealthy nations to support developing countries in their transition to clean energy and adaptation to climate change. The draft deal released on Thursday has left many disappointed, especially since it fails to specify how much developed nations will contribute. In fact, a crucial part of the draft simply states the figure as a placeholder “X.” This absence of concrete financial commitments has caused frustration among negotiators and experts.

Key Issues in the Negotiations

  • Lack of a Financial Figure:
    • Many developing nations and negotiators are frustrated by the lack of a clear financial proposal. Independent experts estimate that at least $1 trillion is needed to help developing countries move away from fossil fuels, adopt clean energy, and cope with the effects of climate change.
    • Some leaders, like Colombia's Environment Minister Susana Mohamed and Panama's Juan Carlos Monterrey Gomez, have expressed their anger, criticizing the lack of transparency and commitment from developed nations.
    • Mohamed Adow from Power Shift Africa remarked, "We need a cheque, but all we have right now is a blank piece of paper."
  • Calls for Action:
    • Delegates from vulnerable regions, such as the Pacific Islands, have emphasized the urgency. "If finance is not bringing any positive results, why are we even coming to COP?" said Esa Ainuu from Niue.
    • Some delegates, like Iskander Erzini Vernoit from Morocco's Imal Initiative, expressed being "at a loss for words" at the lack of meaningful progress.

Reactions from Delegates

  • General Discontent:
    • Many countries, from both the developing and developed world, have criticized the draft as "imbalanced" and "unworkable."
    • The European Union's climate envoy Wopke Hoekstra and China's Xia Yingxian both voiced dissatisfaction with the current draft text, calling it "unacceptable."
    • Pakistan's delegate Romina Khurshid Alam emphasized the need for balance in negotiations, which is currently missing.

Next Steps and Possible Outcomes

  • Pressure on Wealthy Nations:
    • The draft deal's failure to address the financial gap means negotiators are still pushing for a clear commitment. COP29 President Mukhtar Babayev has called for further discussions and possible revisions to the draft. There is hope for a new proposal on the financial figure in the next draft on Friday.
  • Fossil Fuel Commitments:
    • Beyond financial support, discussions on transitioning away from fossil fuels have also stalled. Countries like the United States and Germany have expressed disappointment at the lack of concrete proposals on reducing emissions.
    • UN Secretary-General António Guterres warned that limiting global warming to 1.5°C would be impossible without a phase-out of fossil fuels. However, some nations, like Colombia, Ireland, and Denmark, are pushing for a faster end to fossil fuels, though they have not considered it a dealbreaker.
  • Progress on Emission Cuts:
    • Some nations, including the EU, Mexico, and Norway, have pledged to announce plans for significant emissions cuts in the coming decade. However, details on how these reductions will happen remain unclear.

Conclusion

The lack of financial clarity and serious commitments on reducing fossil fuel emissions at COP29 has left many negotiators disappointed. While the discussions have progressed in some areas, critical gaps remain in terms of both the financial support needed for developing countries and the actions to cut global emissions. The next steps in the negotiations will be crucial for determining the future of global climate action.