New Delhi: Talks on a significantly increased finance deal at the COP29 meeting in Baku remained deadlocked as the amount was not specified in the draft text despite the clock ticking on the summit that ended on Friday.

The new draft, presented by host Azerbaijan on Thursday, defines climate finance, identifies contributors and identifies two options regarding the overall goal; but it fails to quantify the amount that needs to come from rich countries to help developing countries combat climate change. climate change.

Developing countries say this amount should be increased from 100 billion dollars annually to trillions of dollars. India, for example, announced at least $1.3 trillion a year, mostly in grants.

The two options in the draft agreement reflect the broad divide between developed and developing countries on finance.

Options

One option aims to establish a New Collective Quantified Target (NCQG) on climate finance, provided annually by developed countries to all developing countries between 2025 and 2035. This is the option preferred by developing countries.

This will support developing countries in the implementation of their Nationally Determined Contributions (NDCs) in a country-focused manner.

However, this option also invites developing countries to contribute to the fund voluntarily. As reported in the news, developing countries with the ability to do this include Saudi Arabia and China. India and other developing countries oppose this particular clause.

The second option, reflecting the wishes of developed countries, says financing should start by 2035, giving rich countries longer to mobilize their money and that it should come from “all sources of finance”.

Negotiators from 198 countries have been trying to reach a comprehensive agreement on climate finance since November 11 in Baku to provide more financing for climate action.

European countries say an ambitious target could be agreed if they broaden the base of contributors to include richer developing countries such as China and Middle East oil producers, which developing countries including India oppose.

the clock is ticking

UN Secretary-General António Guterres said on Thursday: “I called on G20 leaders to instruct their ministers and negotiators to secure an ambitious new climate finance target at COP29. Delegations and the COP Presidency are working hard to find common ground, but the clock is ticking. COP29 has now reached its final point. Areas of convergence are coming into focus, but differences remain. We need a big push to start discussions about the finish line. “Otherwise it will inevitably make the success of COP30 in Brazil even more difficult.”

Thursday’s draft did not affect civil society.

Sehr Raheja, climate change program officer at the Center for Science and Environment (CSE): “The latest iteration of the NCQG text manages to compile some different views, but it is worrying to see that it does not include any figures on quantum. Developing countries have responded in unison; it needs to have a quantity figure that reflects the needs of the global south and also separates the amount supplied from the overall target (in the trillions).

“Despite mixed reactions from the parties to the latest text, the majority seem determined to reach an outcome in Baku. The Presidency will need to take one last strong step and bring an equitable and fair NCQG proposal to the table – a proposal with quantum value overall. Concessional and grant-based where necessary.” numbers in the trillions, including specifications for financing (finance quality).

COP29 was an opportunity for the global north to chart the right course on climate finance issues and rebuild trust. Without NCQG consensus, this could be considered a failure.”