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Baku – Participating nations at the 29th United Nations Climate Change Conference (COP 29) reached a landmark agreement to allocate $300 billion annually to assist the world’s poorest countries in coping with the effects of climate change. This historic deal was concluded at the summit held in Baku, Azerbaijan.
This new funding pledge replaces the previous commitment of $100 billion per year made by developed nations, which was fulfilled in 2022—two years later than originally planned.
Establishing Global Carbon Credit Markets
In addition to the financial commitment, COP 29 leaders agreed on a framework for a global market to trade carbon credits. Advocates believe this move will encourage significant investments in projects aimed at mitigating global warming. Wealthy nations, including the European Union and the United States, are expected to contribute significantly to the new financial target.
Developing countries, facing the brunt of climate change impacts such as storms, floods, and droughts, had initially deemed the proposed $250 billion annual funding insufficient. Following extended negotiations, the figure was revised to $300 billion to break the stalemate and achieve consensus.
Negotiations Extended Amid Divisions
Although the summit was scheduled to conclude on Friday, discussions extended into the weekend as delegates from nearly 200 nations worked to finalize the funding framework for the coming decade. However, concerns remain over the mechanisms to mobilize such vast sums, given financial constraints faced by developed countries and skepticism from developing nations about the deliverability of these promises.
Independent UN experts estimate that external assistance needs could reach $1 trillion annually by 2030 and rise to $1.3 trillion by 2035. To meet these targets, the agreement calls for substantial increases in loans from multilateral development banks or debt relief for impoverished nations. It also encourages additional donor countries to join the effort.
Mixed Reactions to the Agreement
Chandni Raina, representing India at the conference’s closing session, expressed disappointment, describing the agreement as “mere illusionary optics.” She argued that it fails to adequately address the immense challenges posed by the climate crisis.
Simon Stiell, the UN climate chief, acknowledged the complexities of the negotiations but praised the outcome as a “safety net for humanity.” He emphasized that the agreement would boost clean energy initiatives and protect billions of lives worldwide.
Warming Targets and Future Projections
The 2015 Paris Agreement set a goal of limiting global temperature rise to 1.5°C above pre-industrial levels. According to the World Meteorological Organization, average global temperatures have already risen by 1.3°C.
However, current trends indicate a potential rise of 3.1°C by the end of the century if greenhouse gas emissions and fossil fuel consumption persist unchecked.
High-Level Participation
COP 29, held from November 11 to 22, 2024, in Azerbaijan’s capital, Baku, brought together around 80 world leaders, including UN Secretary-General António Guterres.
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Author: Nor-Eleslam