Baku, Azerbaijan

“Is it a joke?“

This is how Harjeet Singh, Climate Activist and Global Engagement Director for the Fossil Fuel Non-Proliferation Treaty Initiative, reacted to the latest draft of the new Climate Finance Goal in COP 29.

Mr. Singh expressed extreme disappointment and said, “It is a disgrace that despite full awareness of the devastating climate crises afflicting developing nations and the staggering costs of climate action—amounting to trillions—developed nations have only proposed a meager $250 billion per year.

To add insult to injury, this paltry sum includes loans and lacks the crucial commitment to grant-based finance, which is essential for developing nations to both address climate impacts and transition away from fossil fuels.”

He also mentioned, “The trust has been shattered; developing countries must stand firm. Rejecting this is a stand for dignity—no deal is better than a bad deal, especially when it disrespects those bearing the brunt of a crisis they did not create.”

The New NCQG draft mentioned:

Financial needs and gaps

The financial needs to address climate change in developing countries are substantial. The latest estimates indicate that these needs amount to between USD 5.1 trillion and USD 6.8 trillion through 2030, or roughly USD 455 billion to USD 584 billion annually. Additionally, adaptation finance needs are estimated to range from USD 215 billion to USD 387 billion per year. The new goal acknowledges the growing gap between available climate finance and the actual financial needs of developing countries, particularly for adaptation measures.

The decision also highlights the findings from the Intergovernmental Panel on Climate Change’s (IPCC) Sixth Assessment Report, which stresses the urgency of increased finance, technology transfer, and international cooperation to enable climate action. The report suggests that meeting the Paris climate targets requires an increase in both mitigation and adaptation finance and that governments have a critical role in reducing barriers and redirecting global capital to climate action.

Setting a Clear Target for Climate Finance

The new collective goal sets a clear financial target: scaling up financing for developing country parties to at least USD 1.3 trillion per year by 2035. Developed countries are expected to take the lead in meeting this target, which will come from diverse sources, including the public and private sectors, bilateral and multilateral channels, and alternative sources.

The decision also calls for developing countries to make additional contributions, such as through South-South cooperation, to supplement this goal. However, the goal’s implementation will not affect any party’s development or recipient status, ensuring equitable participation in the global climate finance landscape.