• Draft proposes $250 billion annually: COP29 unveiled a finance plan for developed nations to contribute $250 billion per year by 2035, replacing the $100 billion target from 2009.
• Developing nations demand more: The draft acknowledges a broader $1.3 trillion goal but sets no binding commitments, sparking criticism from small-island states and emerging economies.
• Global climate stakes rise: 2023 is projected to be the hottest year on record, with extreme weather wreaking havoc worldwide, amplifying calls for urgent and robust climate finance.

A contested proposal

The Azerbaijani presidency at COP29 revealed a draft plan urging wealthy nations to lead a $250 billion annual financing initiative by 2035. This figure, termed the “new collective quantified goal” (NCQG), is a significant increase from the $100 billion target agreed upon in 2009 but falls far short of the $1.3 trillion demanded by developing nations.

The draft text frames the $250 billion as a “first reflection” of negotiations and leaves room for adjustments. However, it relegates the $1.3 trillion figure to an aspirational goal, calling for collaboration among public, private, bilateral, and multilateral sources to scale up financing.

The presidency emphasized that the draft stemmed from an inclusive consultation process:
“We gave all groups the opportunity to react to the package of texts… These texts form a balanced and streamlined package for COP29. We will further engage with Parties to collectively agree final adjustments.”

Related Article: Conflict-Affected Nations Push for $20 Billion in Climate Aid at COP29, Letter Reveals

Sharp criticism from all sides

The proposal has drawn fire from both developing and developed countries. Panama’s Special Representative for Climate Change, Juan Carlos Monterrey Gomez, expressed outrage at the low target:

“I’m so mad. It’s ridiculous. Just ridiculous. It feels that the developed world wants the planet to burn.”

Chiara Martinelli, Director of Climate Action Network Europe, labeled the $250 billion target inadequate:

“A $250 billion annual target by 2035, spread across all actors, is not even breadcrumbs… Rich countries must return to the negotiation room to step up, pay up, and deliver real climate finance. This text is unacceptable.”

Wealthy nations, including the EU and the United States, also voiced concerns over the draft’s feasibility. A European negotiator said:

“No one is comfortable with the number, because it’s high and (there is) next to nothing on increasing contributor base.”

The list of nations expected to provide the bulk of financing includes the EU, U.S., Japan, Australia, Canada, and Norway.

The climate crisis deepens

The negotiations come amid escalating climate disasters in what is set to be the hottest year on record. UN Secretary-General Antonio Guterres, urging action, warned:

“Failure is not an option.”

Extreme weather events have caused devastation globally. Flooding in Africa has claimed thousands of lives, while South America faces drought-induced river shrinkages. Even wealthy nations are not spared—Valencia, Spain, witnessed deadly floods last month, and the U.S. has recorded 24 billion-dollar climate disasters this year alone.

Fiji negotiator Daniel Lund emphasized the need for a higher finance target:

“It is a very low number in relation to the available evidence on the scale of the need that exists and understanding of how those needs will evolve.”

High stakes in the final hours

With the summit scheduled to end today, negotiators face mounting pressure to finalize a deal. However, past COPs have often run into overtime, leaving room for further deliberation. Whether the proposed $250 billion plan will evolve to meet the demands of developing nations remains to be seen.

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