The Development of Climate Finance Goals During the COP29

In 2009, developed countries agreed to mobilize USD 100 billion to support developing countries in their climate actions. Just before the deadline in 2025, this climate finance goal has been deemed insufficient. The COP29 was expected to address this by setting more ambitious financial commitments for the future. Would the conference’s outcome suffice?

Urgency for Financing Amidst Crisis

In early 2024, the World Meteorological Organization (WMO) reported that 2023 was the hottest year on record, with global average temperatures reaching 1.45°C. This record continued into 2024, with an even higher temperature average of 1.62°C between November 2023 and October 2024. These extremes underscore the urgency to increase climate funding to help developing countries deal with both the causes and effects of climate change.

The Conference of Parties 29 (COP29) was held in Baku, Azerbaijan, between 11 to 22 November 2024. This annual meeting allows nations to negotiate new measures and assess their progress in tackling climate change. 

While every COP becomes the focus of country leaders and development actors worldwide, the COP29 particularly garnered significant attention because it involved a discussion on new climate finance targets, replacing the current goals expiring in 2025. The focus of these new targets is ensuring every country has the resources to take conclusive climate action, especially in cutting greenhouse gas emissions and building resilient communities. 

COP 29 Climate Finance Outcomes

The conference, which was originally scheduled to conclude on November 22, had to be extended due to the complex negotiations on global climate finance. 

A significant point of contention between developed and developing countries was the proposal from developed countries to allocate USD 250 billion annually by 2035. Many developing countries rejected the proposal from developed countries regarding the funding amount. Salome Lehtman, Project and Advocacy Advisor at Mercy Corps, said that USD 250 billion would be equivalent to the previous goal of USD 100 billion when adjusted for inflation, which would not sufficiently address the global climate. 

Developing countries are fighting for at least USD 1.3 trillion to tackle climate change and transition to clean energy, in line with recommendations provided by the Independent High-Level Expert Group on Climate Change (IHLEG)

After a lengthy negotiation, the COP29 finally concluded on 24 November 2024. The main outcome was the decision to increase the financial support for developing countries from USD 100 billion annually to USD 300 billion annually by 2035. 

Scaling Up Financial Commitments for Climate Resilience

As major contributors to global greenhouse gas emissions, developed countries have enormous responsibilities to support developing countries, which often suffer great damage despite contributing less to the crisis. Although the agreed amount is still far from what is hoped by developing countries,  the COP29’s outcome showed a little bit of progress.  

Still, the road is still long. Country leaders, international organizations, and related stakeholders must closely monitor the goal’s implementation to ensure accountability from developed countries. Additionally, taking bold actions to reduce greenhouse gas emissions is crucial to halting the climate crisis and preventing further damage, and must be prioritized.  

Editor: Kresentia Madina & Nazalea Kusuma