Climate negotiators at COP29 faced a stark ultimatum on Thursday: Provide significant funding now to help poor nations manage climate impacts or pay an even higher price in the future.

Experts say developing countries will need at least $1 trillion a year to transition to green energy and protect communities from increasing extreme weather events by the end of this decade.

The issue of climate finance remains at the forefront of COP29; The summit’s success will likely be measured by its ability to secure new funding commitments from rich nations, development banks and the private sector.

The previous annual target of $100 billion, set in 2009 and intended to be reached by 2020, was only reached in 2022, according to the OECD; This goal was achieved through loans rather than grants, which many recipient countries argued needed to be reconsidered.

A report published by the Independent High-Level Expert Group on Climate Finance at the start of the summit recommended that an annual target of $1.3 trillion by 2035 would be required to move towards climate targets, and that more investment should be made sooner to avoid significantly higher costs later. did. .

“Any shortfall in investment before 2030 will put additional pressure on the following years and create a steeper and potentially more costly path to climate stability,” the report warned. “The less the world achieves now, the more we will have to invest in the future.”

Despite behind-the-scenes negotiations, draft texts released by the United Nations climate agency reflect a wide range of views and suggest negotiations will be tough. Rich countries are reluctant to provide additional funds unless major economies such as China agree to contribute.

Complicating matters further, U.S. support may be waning as President-elect Donald Trump has expressed opposition to resuming climate finance, adding urgency to securing alternative financing sources.

Multilateral development banks, including the World Bank, have committed to increasing climate finance by nearly 60% to $120 billion annually by 2030 and providing at least $65 billion from private sources.

Meanwhile, proposals to impose taxes on high-emission industries such as aviation, fossil fuels and shipping have attracted attention, but it seems unlikely that an agreement will be reached this year.

Diplomatic tensions surface

The summit also revealed diplomatic rifts that threaten the spirit of cooperation needed for climate negotiations. French Climate Minister Agnès Pannier-Runacher canceled a trip to Baku after Azerbaijani President Ilham Aliyev accused France of committing “crimes” in the Caribbean territory, adding that these communities face “brutal repression” by French authorities.

This public exchange reflects long-standing tensions between France and Azerbaijan, exacerbated by France’s support for Azerbaijan’s regional enemy, Armenia.

In response, European Union climate commissioner Wopke Hoekstra emphasized that COP29 should be a neutral space for climate dialogue and called on the Azerbaijani presidency to ensure an inclusive environment for all delegations.

Aliyev has previously accused Western countries of hypocrisy for promoting climate action while continuing to consume significant amounts of fossil fuels.

The withdrawal of the Argentine delegation from the talks further increased the diplomatic drama, according to diplomats, but Argentina’s embassy in Baku remained silent on the decision. Argentinian President Javier Milei controversially called global warming a “hoax”, raising questions about Argentina’s stance on climate action.