COP29: African governments reject $300 billion annual climate finance deal

• African governments are unsatisfied with the $300 billion annual climate finance deal reached at COP29
• LDCs say the deal falls short of the commitment required for climate adaptation and mitigation goals
• Developing countries are saying developed countries should reconsider their stance

Governments of African countries have expressed dissatisfaction with a new collective quantified goal (NCQG) of $300 billion a year by 2035 climate finance deal proposed by world leaders at the United Nations Conference of Parties (COP29).

On Sunday, November 24, the closing plenary of COP 29, which was held in Baku, Azerbaijan, between November 11 and 22, world leaders reached a consensus on the “Baku Finance Goal.”

While announcing the deal, which was overstretched by 33 hours, the COP29 President, Mukhtar Babayev, said the decision was the best possible deal negotiators could reach.

He said, “The Baku Finance Goal represents the best possible deal we could reach. In a year of geopolitical fragmentation, people doubted that Azerbaijan could deliver. They doubted that everyone could agree. They were wrong on both counts.”

Details of the $300 billion agreement

During the deliberations, least developing countries (LDCs) proposed an annual payout of $1.3 trillion, mostly in grants and not loans, to support adaptation and mitigation goals. This was upturned by developed countries that refused to make such commitments.

The $200 billion and $250 billion initially proposed by developed countries were rejected as LDCs noted that the pledge does not meet the ambitious and much-needed climate finance commitment expected from richer nations, even as LDCs suffer climate change disasters.

The agreed $300 billion deal will be provided through public and private financing and bilateral and multilateral deals. Parties were also urged to intensify efforts towards achieving a $1.3 trillion annually by 2035.

LDCs reject $300 billion deal

However, LDCs have rejected the $300 billion deal as it does not meet expectations and agreements reached during previous COPs. At COP27, nations agreed on the historic loss and damage fund. During COP28, a global agreement was reached to transition from fossil fuels to boost climate resilience. The negotiations at COP29 were hoped to be a rather giant stride by LDCs.

The annual $300 billion deal had negotiators and delegates from the Global South saying that “A no deal is better than a deal that commits African countries to what is undeliverable without serious climate finance.”

Reacting to the deal, the Director-General of the National Council on Climate Change (NCCC), Nkiruka Maduekwe, said the deal is “unrealistic” as it cannot adequately climate adaption and mitigation plans for developing countries, adding that wealthy nations must reconsider their decision.

Maduekwe said, “That developed countries are saying they would take the lead with $300 billion dollars by 2035 is a joke and not something we should take lightly.

“I do not think it’s something that we should clap our hands and force us to take it. I think we should rethink it. It is not just by putting it in statements but we have a right as countries to choose if we are going to take this or not. And I’m saying that we do not accept this.

“You expect us to have ambitious NDCs, the NCQG is supposed to enable us to have realistic finance goals but $300 billion is unrealistic. Let us tell ourselves the truth.”

UN, others lend their voice

Reacting to the deal, Sierra Leone’s Environment Minister, Jiwoh Abdulai, said the deal indicates a “lack of goodwill” by developed countries to support climate action in the poorest countries.

Also, the Pan African Climate Justice Alliance (PACJA) said the deal followed a well-known repetitive cycle where developed nations force developing nations to accept deals on their own terms.

PACJA’s Executive Director, Mithika Mwenda, said, “Baku seems to repeat the same pattern from previous COPs where negotiations are deliberately dragged through at snail pace for two weeks, only for the final card to be released by invisible powers at the last minute, with a take-or-leave offer that is shoved down the throats of helpless poor countries.”

Despite hoping for a more ambitious deal after the negotiations, UN Secretary-General Antonio Guterres called on parties to unite and honour the commitment.

He said, “It must be honoured in full and on time. Commitments must quickly become cash. All countries must come together to ensure the top-end of this new goal is met.”

Okonjo-Iweala, other global trade leaders call for urgent action on clean energy, climate policies

Meanwhile, TheRadar reported that in a strong push for global sustainability, Ngozi Okonjo-Iweala, the Director-General of the World Trade Organisation (WTO), emphasised the critical need to significantly increase renewable energy production and improve energy efficiency to meet the Paris Agreement goals by 2030.

Speaking at the fifth edition of Trade and Environment Week in Geneva, which was held from October 7 to 11, 2024, Okonjo-Iweala highlighted the growing role of trade policies in promoting environmental responsibility and enabling a shift toward clean energy.