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COP29 Climate Agreement: The 29th Conference of Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) concluded in the early hours of November 24, 2024, with the final agreement extending 36 hours beyond the scheduled closure. The gavelled document included a commitment to provide $300 billion annually for climate finance to developing countries by 2035. This figure covers a broad range of funding sources, including public, private, and alternative financial channels.
Discrepancies in the Agreement:
1. Text of the Agreement (NCQG): The official New Collective Quantified Goal (NCQG) document sets a goal of at least USD 300 billion per year by 2035 for developing countries, focusing on climate action. This is expected to come from developed countries, with a variety of funding sources—public, private, bilateral, multilateral, and even alternative sources.
2. UNFCCC Statement Confusion: The UNFCCC statement, released at 4:30 AM Baku time, presents a contradictory figure, stating that the goal is to triple public finance to developing countries, from USD 100 billion annually to USD 300 billion annually by 2035. The statement also claims that the agreement aims for USD 1.3 trillion per year by 2035, from both public and private sources.
3. Financial Sources and Concerns: While the public finance mentioned is to be directed from developed countries to developing nations (either as grants or low-interest loans), there are concerns that the private finance mentioned in the statement could lead to the accumulation of climate debt. Developing countries worry that private finance may come with stricter conditions and higher interest rates, which could strain their economies further.
Global Criticism:
Harjeet Singh, a climate activist and Global Engagement Director for the Fossil Fuel Non Proliferation Treaty Initiative, criticized the UNFCCC statement for misrepresenting the situation. Singh pointed out that the $300 billion figure was misleading as it blends public finance with loans, a point of contention for many developing nations. Singh emphasized that developed countries have repeatedly ignored calls for substantial increases in climate finance, and the last-minute negotiations at COP29 only deepened the divide between developed and developing nations. The overtime talks created a sense of urgency and discontent, with developing nations pushing for a more equitable and substantial commitment.
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