By Solange A. Barreira
Baku’s decision disappoints a weak financing of US$300 billion and leaves gaps that will need to be filled at the next conference.
After much deadlock, tension, and being on the verge of collapse, COP29 approved the new climate financing target, the NCQG, in the early hours of Sunday morning (November 24). The decision was met with strong opposition from developing countries, which described it as “an insult” and “a flagrant violation of climate justice.” The agreement allocates $300 billion annually by 2035 — far from the $1.3 trillion demanded — to fund climate action in developing nations.
Furthermore, the text avoids placing direct responsibility on developed countries (instead referring to them as being “at the forefront” of efforts), does not mandate that the financing be public (potentially diluting sources and accountability), and allows part of the funding to be delivered through loan mechanisms—a risk of debt accumulation for developing nations.
“The financing agreement closed today in Baku distorts the UNFCCC and undermines any concept of justice. With the help of an incompetent presidency, developed countries have once again managed to abandon their obligations and make developing countries foot the bill. Brazil now faces yet another monumental task for COP30: securing increased funding and rebuilding trust between nations,” said Claudio Angelo, International Policy Coordinator at Observatório do Clima.
Stela Herschmann, International Policy Specialist at the organization, emphasized that the outcome is a mockery of developing and vulnerable nations. “The new climate finance target adopted today is a step backward compared to the previous target. Not only is the amount insufficient but the responsibility of developed countries is diluted and unlikely to be reversed in the future”, she remarked
To put things into perspective: dividing the current $300 billion by the number of least-developed countries, each of the 45 nations most vulnerable to the climate crisis would receive $6.6 billion annually. The estimated aid and recovery cost for Rio Grande do Sul after this year’s historic floods is up to BRL 100 billion (approximately $17 billion). In contrast, Brazil’s 2023 Family Farming Plan allocated over BRL 400 billion (nearly $69 billion) in credit to agribusiness.
Stalemate
Hours before the final plenary, Brazil’s Minister of Environment and Climate Change, Marina Silva, described the “painful experience” of the lack of agreement in Baku during a press conference. She reiterated that the proposal presented the previous day “is unacceptable” and hinted that discussions centered around the $300 billion annual amount.
“In Dubai, we established that we should align with 1.5°C [the Paris Agreement target to limit global warming] and that this required tripling renewable energy, doubling efficiency, and transitioning away from fossil fuels. Here, we must align the necessary resources to meet these efforts,” said Silva.
She also outlined the post-Baku priorities leading to next year’s conference in Belém: “Our central goal for COP30 will be aligning sufficiently ambitious NDCs to achieve the 1.5°C target. COP30 in Belém is a massive challenge that we can only achieve through the effort and collaboration of everyone represented here,” she stated.
Brazil’s responsibility was also highlighted by Marcio Astrini, Executive Secretary of Observatório do Clima, who hopes COP30 will bridge the gaps left by Baku: “The COP29 presidency was disastrous, surpassed only by the content of the approved text, which is utterly inadequate for addressing the climate crisis. Baku’s outcome reveals that wealthy countries are shirking responsibility while leaving the financing burden unresolved. COP30, under Brazil’s leadership, must be highly competent and dedicated to filling these gaps, advancing ambition, and keeping the 1.5°C goal alive,” he said.