UPDATED: COP29: World leaders agree on $300 billion climate finance deal for poorer countries

"The Baku Finance Goal represents the best possible deal we could reach."

After about two weeks of intense deliberations and negotiations, world leaders at the 29th United Nations Climate Summit (COP29) in Baku, Azerbaijan, reached a consensus on the “Baku Finance Goal.”

The COP29 President, Mukhtar Babayev, announced the deal reached during Sunday’s closing plenary of the summit in Baku.

“The Baku Finance Goal represents the best possible deal we could reach. In a year of geopolitical fragmentation, people doubted that Azerbaijan could deliver. They doubted that everyone could agree. They were wrong on both counts,” Mr Babayev said.

This framework establishes a new global objective to mobilise $1.3 trillion in climate finance directed toward developing nations by 2035, representing a substantial increase in agreed funding to support climate adaptation and mitigation efforts.

The new finance package adopted also includes a fresh pledge by wealthy nations to provide $300 billion annually to poorer countries to help them address climate change challenges.

The new deal may seem impressive as it triples the previous $100 billion goal set in 2009. However, it did not meet the hopes of negotiators and delegates from the Global South, especially those from Africa and similar regions, with the Nigerian delegation describing it as an “insult.”

Within the past two weeks of negotiations, many voices echoed their dissatisfaction with the negotiation process, feeling that it was overshadowed by roadblocks and alleged sabotage from wealthier nations and even some developing countries.

This year’s COP, dubbed the finance COP, began on 11 November and was expected to end on 22 November. However, the discussions were extended by over 33 hours, leaving some negotiators to stage a walkout. They expressed their dissatisfaction with weak commitments from wealthy nations.

The final draft agreed on Sunday followed two dissatisfactory proposal drafts on Thursday and Friday, which prompted negotiators/delegates from the Global South to say, “A no deal is better than a deal that commits African countries to what is undeliverable without serious climate finance.”

The gap between ambition and reality remains a key source of frustration for Parties from climate-vulnerable countries advocating for greater equity in climate change discussions.

UN, Nigeria react

The Nigerian delegation to COP29 described the deal as inadequate.

Nigeria’s focal person and Director General of the National Council on Climate Change (NCCC), Nkiruka Maduekwe, described the new climate finance goal as “unrealistic” and an insult to the spirit and letters of the UN framework convention on climate change.

“We do not accept this. You expect us to have ambitious NDCs. The NCQG was supposed to enable us to have realistic finance goals. $300 billion is unrealistic. Let us tell ourselves the truth,” Ms Maduekwe said.

“It is going to be a disservice to me, my country and women, the rural women, the women who are in the developing countries; not just the women [but] everybody, if we walk back home with $300 [billion USD] and we say that the developed countries are taking the lead. This is an insult to what the convention says.”

In his reaction, UN Secretary-General Antonio Guterres said he had hoped for a more ambitious outcome. He, however, called on parties to unite and honour the commitment.

“It must be honoured in full and on time. Commitments must quickly become cash. All countries must come together to ensure the top-end of this new goal is met,” he said.