The European Union on Saturday increased its offer of financial assistance to poor nations most affected by climate change, raising the proposed amount to $300 billion annually.
This increase came after developing countries rejected an earlier proposal of $250 billion per year by 2035.
The proposal aims to address the needs of nations that are suffering the most from the escalating effects of climate change, such as droughts and natural disasters.
The talks, held at the COP29 conference in Baku, Azerbaijan, had already extended beyond their original schedule, with negotiators working tirelessly through the night in a sports stadium in the Caspian Sea city to find common ground.
The urgency of the situation was underscored by the fact that 2024 is predicted to be the hottest year on record, highlighting the pressing need for action.
The Chairman of the African Group of Negotiators and Kenya’s climate change envoy, Ali Mohamed, expressed frustration at the initial $250 billion offer, calling it a “big mockery.”
He emphasized that without a more significant offer, COP29 risked failing, stating, “No deal is better than a bad deal.”
This sentiment was shared by over 300 activist organizations that strongly supported developing nations in their push for more substantial climate finance, accusing wealthy countries of trying to avoid legal obligations that would hold them accountable for their role in climate change.
The EU’s revised offer of $300 billion came with conditions, including the introduction of annual reviews of global efforts to phase out fossil fuels, which are the primary drivers of global warming.
These reviews were met with opposition from Saudi Arabia, which has resisted commitments to reduce its reliance on oil, gas, and coal.
Saudi Arabia’s stance has been a point of contention, with Irish Climate Minister Eamon Ryan acknowledging the challenge of balancing the need for more financial support with the push for fossil fuel phase-out.
Ryan said, “We need to get an agreement. This is important that we give hope to the world, that multilateralism can work, that we are responding to the climate crisis.”
Negotiators are also grappling with the broader financial framework of the agreement.
While the draft proposes an overall climate finance target of $1.3 trillion per year to cope with the effects of climate change, most of this funding is expected to come from private sources.
This has sparked concern among developing nations, which argue that the amount may not be sufficient, with inflation further eroding its value.
Some countries, such as Brazil, are advocating for a direct financial commitment of at least $390 billion from wealthier nations.
However, there is a push from the EU and the US to include emerging economies like China in the funding process.
While China, the largest emitter of greenhouse gases, continues to provide climate assistance, it insists on doing so voluntarily rather than as part of a formal obligation under the UN framework.
The issue of fossil fuel dependence has also been a major point of contention. Saudi Arabia has lobbied for weaker language on fossil fuels, arguing that countries heavily reliant on oil and gas should not be forced to transition away from these resources.
This has been met with resistance from European leaders, including German Foreign Minister Annalena Baerbock, who warned that Saudi Arabia’s stance would “turn back the clock” on progress made in previous climate talks.
Azerbaijan, the host nation of the COP29 conference, has faced criticism for its handling of the negotiations, with some accusing the government of lacking the experience and expertise necessary to steer such complex discussions.
Azerbaijan’s leader, Ilham Aliyev, opened the conference by condemning Western nations and defending fossil fuels, calling them a “gift of God.”
This rhetoric has raised concerns among environmental groups and climate negotiators, who fear that such attitudes could undermine global efforts to combat climate change.
As the talks continue into an extra day, the hope remains that a comprehensive and equitable deal can be reached to address the urgent financial and environmental challenges posed by the climate crisis.
