COP29: 1.3 trillion US dollars

A new draft agreement on financing climate programs, unveiled at the 29th session of the UN Conference on Climate Change (COP29), proposes allocating at least $1.3 trillion (€1.23 trillion) annually for climate protection measures and adaptation to the impact of climate change, according to a 34-page document released on Wednesday. The draft, developed with input from developing nations, aims to address the needs of the world's poorest countries, though several contentious issues remain unresolved, AFP reported.

The draft agreement prioritizes financial support for the least economically developed nations—predominantly African countries—which are seeking at least $220 billion in annual funding. Small island states, grappling with rising sea levels, are pushing for $39 billion to address climate-related vulnerabilities.

The initial draft, prepared by Egypt and Australia, faced significant backlash from developing countries on November 12. Critics argued that the document favored the interests of wealthy, industrialized nations, failing to adequately address the needs of vulnerable economies.

In response, the new proposal outlines three options for mobilizing financial resources. The first option, backed by developing countries, calls for climate finance to be exclusively funded by industrialized nations. The second option, supported by wealthy states, suggests broadening the pool of donor countries to include affluent emerging economies, such as China. A third, compromise-based option offers a balanced approach but does not yet resolve the disagreements between the parties.

Delegates at COP29 will now engage in intensive negotiations to finalize the agreement, with discussions expected to continue until November 22. The outcome is anticipated to be a critical step in aligning global financial flows with climate mitigation and adaptation goals.