COP29 Ends With $300 Billion Climate Deal

Activists shout slogans during a protest action at the COP29 United Nations climate change conference, in Baku, Azerbaijan dated Nov. 23, 2024. Reuters/Maxim Shemetov

Countries at the COP29 summit adopted a $300 billion annual global finance target on Sunday, $50 billion higher than a previous draft proposal.

The COP29 climate summit’s annual target for poorer nations surpassed the earlier draft proposal of $250 billion.

The U.N. climate conference, held in Azerbaijan,  also finalized rules for a global market to buy and sell carbon credits.

Some delegates gave the agreement a standing ovation in the COP29 plenary hall, while others said it fell short of what was needed.

The agreement also includes a broader goal of raising $1.3 trillion in climate finance annually by 2035—which would include funding from all public and private sources.

Reform Global Financial System

In closing remarks, Simon Stiell, the U.N. climate change executive secretary, said that this new finance goal “is an insurance policy for humanity.”

Stiell urged leaders on Nov. 12 to “reform the global financial system,” describing climate finance as “global inflation insurance.”

“It has been a difficult journey, but we’ve delivered a deal,” Stiell said. “This deal will keep the clean energy boom growing and protect billions of lives.

“But like any insurance policy, it only works if the premiums are paid in full, and on time.”

Carbon Credits

It was announced on Nov. 12 that efforts will support a decade-old aim to establish a centralized carbon market by next year. On Nov. 23, negotiators struck a final deal to allow for such a system.

According to the United Nations, carbon credits are measured in metric tons of CO2 equivalent and can be purchased by individuals, businesses, and organizations to offset emissions or support environmental projects.

President Joe Biden congratulated the COP29 participants for reaching what he called a historic agreement that would help mobilize needed funds but said more work was needed.

“While there is still substantial work ahead of us to achieve our climate goals, today’s outcome puts us one significant step closer. On behalf of the American people and future generations, we must continue to accelerate our work to keep a cleaner, safer, healthier planet within our grasp,” Biden said in a statement.

‘Mixed Bag’

The UK government noted that the $300 billion figure was “far less than the $1 trillion estimated to be needed.”

Environmental Audit Committee Chair Toby Perkins MP said: “The 11th-hour agreement reached at COP29 is a mixed bag. On the one hand, the fact that a significant $300 billion has been pledged to support the world’s poorest in tackling the devastating effects of climate change represents real progress.

“While it is far less than the $1 trillion estimated to be needed, the sum agreed brought the negotiations back from the verge of collapse.”

Activists said that not enough was being done.

Oxfam International’s climate change policy lead, Nafkote Dabi, said in a statement on Nov. 25 that the deal was “a terrible verdict.”

“The $300 billion so-called ‘deal’ that poorer countries have been bullied into accepting is unserious and dangerous—a soulless triumph for the rich, but a genuine disaster for our planet and communities who are being flooded, starved, and displaced today by climate breakdown,” she said.

‘We Oppose’

Some negotiating blocs walked out of talks in protest, saying the agreed target wasn’t enough.

“We came in good faith, with the safety of our communities and the well-being of the world at heart,” Tina Stege, the climate envoy for the Marshall Islands, said at the closing plenary.

“Yet, we have seen the very worst of political opportunism here at this COP, playing games with the lives of the world’s most vulnerable people.”

“I regret to say that this document is nothing more than an optical illusion,” Indian delegation representative Chandni Raina said during the closing session of the summit, minutes after the deal.

“This, in our opinion, will not address the enormity of the challenge we all face. Therefore, we oppose the adoption of this document.”

Reuters contributed to this report.