At COP29, held in Baku, Azerbaijan, world leaders made a landmark decision to triple public climate finance for developing nations, marking a significant shift in global climate policy. Under the newly established "Baku Finance Goal," developed nations pledged $300 billion annually in public funding for climate initiatives in the Global South, up from the previous $100 billion target set in 2009. This commitment is part of a broader aim to mobilize $1.3 trillion in climate finance by 2035, targeting adaptation, renewable energy, and resilience measures.
The agreement builds on prior milestones, including the establishment of a Loss and Damage Fund at COP27 and advancements in renewable energy transitions at COP28. The new funding initiative focuses on assisting the most vulnerable nations, such as small island states and least-developed countries, in adapting to climate impacts and mitigating risks.
Despite the historic nature of the agreement, it has faced criticism. Developing nations, including India and Bolivia, argued the funding falls short of addressing their needs to combat climate challenges effectively. Indian officials stressed the gap between required investments and the pledged amounts, calling for more substantial commitments from developed nations.
Other key outcomes from COP29 included advancements in carbon market frameworks under Article 6 and operationalizing the Loss and Damage Fund, which is expected to disburse funds by 2025. Transparent reporting mechanisms and support for National Adaptation Plans were also emphasized, enhancing accountability and facilitating progress toward limiting global warming to 1.5°C.
UN Climate Change Executive Secretary Simon Stiell described the agreement as an "insurance policy for humanity," while COP29 President Mukhtar Babayev highlighted the collective effort required to turn financial commitments into actionable outcomes. The summit represents a critical step in addressing the urgent climate crisis, but much work remains to meet global ambitions for a sustainable future.
Sources: UNFCCC, The Statesman, Mirage News.