COP29 draft deal proposes $1T climate finance

The COP29 UN climate summit unveiled a draft deal Thursday in Baku, proposing at least $1 trillion in annual financing from 2025, but details on funding sources remain unresolved.

The 10-page draft sparked debate, particularly over the reliance on loans, which could burden developing countries.

The plan offers two approaches: a gradual ramp-up to the funding target or immediate contributions starting in 2025, with wealthy nations like China and Saudi Arabia invited to contribute voluntarily.

However, key figures, including the balance of grants versus loans, remain blank, leaving negotiators significant work in the coming days.

The draft also ties financial commitments to stronger emissions-cutting goals, a contentious issue for developed nations such as the US and EU.

Meanwhile, reaffirming last year’s fossil fuel transition pledge remains uncertain, featuring in just one of four options in a related document.

“The lack of a clear bridging proposal and any numbers leaves negotiators with a huge amount of progress to make over the next day or two,” said Rob Moore, Associate Director at European think tank E3G, highlighting the challenges ahead.

Attribution: Bloomberg

Subediting: M. S. Salama