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full screen The EU’s climate chief Wopke Hoekstra meets reporters – and critics at COP29. Photo: Joshua A. Bickel/AP/TT
Rich countries must contribute more money to help poorer countries transition to cleaner energy and adapt to global warming.
Here are the main points of the agreement reached at COP29 in Baku:
The sum is increased
According to a UN framework from 1992, 23 rich countries, and the EU, historically bear the greatest responsibility for emissions that warm the planet and are obliged to contribute to climate finance.
In the agreement from COP29, the sum that the countries must pay is increased to at least 300 billion dollars per year until 2035. This is more than the 100 billion dollars previously paid, but less than the at least 500 billion several developing countries considered necessary.
That’s how it should be financed
According to the agreement, the money must come from several different sources, such as state budgets, investments from the private sector and other types of financing. It also addresses alternative sources, which could be global taxes discussed with the aviation and shipping industries.
1.3 trillion
The hope is that the money from the rich countries will drive private investment to reach the ambitious goal – which is in the agreement – to be able to contribute at least 1.3 trillion dollars a year until the next decade. That is the sum estimated by UN experts before the meeting to be required until 2035.
Who will contribute?
The US and the EU have pushed for countries that are still listed as developing countries, but are now rich, such as China and Saudi Arabia, to join and contribute.
China, the world’s second largest economy and a major emitter of greenhouse gases, has stubbornly refused to change its status and points out that it already contributes bilateral support.
The agreement states that the richer countries should take the lead in contributing the 300 million, implying that others may also do so. The text “encourages” developing countries to contribute, but it remains voluntary.
A news item
One novelty is included in the agreement. The climate finance that developing countries such as China provide through multilateral development banks will count towards the $300 billion target.
The money that is not included
The Least Developed Countries (LDCs) had requested $220 billion a year, while the Alliance of Small Island States (AOSIS) wanted $39 billion—demands opposed by other developing countries.
Those sums are not included in the final agreement. Instead, they demand that other public funds the countries receive should be tripled by 2030.