COP29 ends with contentious $300bn a year climate finance deal for developing nations

World leaders at the UN conference of parties (COP29) have agreed on a new finance deal of $300 billion a year after days of intense negotiations.

The high-level climate event which went into overtime left many developing countries disappointed with the outcome.

Developing countries had been vocal about their demand for a $1.3 trillion funding to help vulnerable countries adapt to the impacts of climate change.

The Alliance of Small Island States and Least Developed Countries had staged a walkout during a finance meeting at the conference on Saturday.

The walkout was to protest the new collective quantified goal (NCQG) of $300 billion proposed by developing countries.

Speaking during the closing plenary, Simon Stiell, the executive secretary of the United Nations Framework Convention on Climate Change (UNFCCC), urged countries to fulfill their pledges.

Stiell added that although not all nations reached their intended goals, the outcome leaves the parties with a pressing task ahead.

“This new finance goal is an insurance policy for humanity, amid worsening climate impacts hitting every country. But like any insurance policy – it only works – if premiums are paid in full, and on time. Promises must be kept, to protect billions of lives,” Stiell said.

“No country got everything they wanted, and we leave Baku with a mountain of work to do.

“The many other issues we need to progress may not be headlines but they are lifelines for billions of people.” 

Antonio Guterres, United Nations (UN) secretary-general, said he had envisioned a bold and ambitious outcome, noting that the newly forged deal serves as a foundational stepping stone.

“I had hoped for a more ambitious outcome – on both finance and mitigation – to meet the great challenge we face. But this agreement provides a base on which to build,” Guterres said.

Reacting to the new NCQG, Mohammed Adow, director of Power Shift Africa, said it is a betrayal of the planet by rich countries.

“This COP has been a disaster for the developing world. It’s a betrayal of both people and planet, by wealthy countries who claim to take climate change seriously,” Adow said.

“Rich countries have promised to “mobilise” some funds in the future, rather than provide them now.

“At this ‘Finance COP’ not a single dollar of real climate finance has been provided right now.”

The new finance goal at COP29 builds on the efforts made at COP27, where nations agreed on the historic loss and damage fund, and COP28, which delivered a global agreement to transition from fossil fuels to boost climate resilience.