Baku: The European Union, the United States, and other affluent nations have elevated their climate finance offer to $300 billion annually to support developing nations, as announced at COP29. This move comes amid prolonged negotiations, already extending a day past the official summit deadline, with nearly 200 participating nations striving to reach a consensus on a decade-long funding framework.

The enhanced offer, aimed at bridging stark divides between developed and developing countries, replaces the previous $100 billion-per-year target set for 2020, which was only met in 2022 and expires in 2025. However, it remains uncertain whether this revised proposal will lead to an agreement. Tensions escalated when representatives from small island nations and least-developed countries temporarily exited the negotiations, citing exclusion and dissatisfaction with the process.

Earlier proposals, including a $250 billion plan from the Azerbaijani COP29 presidency, were deemed inadequate by developing nations grappling with escalating costs from climate-induced disasters. Panama's lead negotiator, Juan Carlos Monterrey Gomez, expressed concerns over the lack of political clarity and direction, echoing frustrations voiced by others in the Global South.

While the European Union, U.S., UK, and Australia appear aligned on the $300 billion figure, discussions remain fraught over contentious issues like expanding the roster of contributing countries to include major economies like China and resource-rich Gulf states.

Brazil, set to host COP30, has advocated for even more ambitious targets, proposing $390 billion in annual contributions from developed countries by 2035. Brazil’s Environment Minister Marina Silva emphasized the necessity of a robust financial commitment to confront the escalating climate crisis.


A broader $1.3 trillion annual climate finance goal by 2035, incorporating private sector contributions, is also under discussion. However, unresolved questions about the nature of funding—grants versus loans—and the historical burden on industrialized nations have further complicated negotiations.

Developing nations have warned that a weak financial agreement could hinder their ability to implement more aggressive emission reduction targets, risking setbacks in global climate action. As negotiations continue, U.S. climate envoy John Podesta expressed cautious optimism, characterizing the tension as "the storm before the calm."