U.N. Climate Goals Reach $300 Billion in Annual Climate Project Financing Amid Ongoing Global Emissions Concerns

U.N. Climate Goals Reach $300 Billion in Annual Climate Project Financing Amid Ongoing Global Emissions Concerns

Baku, Azerbaijan - In a bid to address the pressing issue of climate change, the United Nations (U.N.) has concluded its annual Climate Change Conference (COP29) with rich countries pledging to supply $300 billion per year in climate project financing by 2035. The commitment is a significant increase from previous agreements, exceeding the $100 billion promised at COP15 in 2009.

The decision text calls for all actors to work together to scale up climate finance for developing countries from public and private sources to at least $1.3 trillion per year by 2035. However, this targets significantly exceed the amount demanded by developing nations in previous years, leaving a gap between the commitment made today and their long-standing demand of $1.3 trillion per year.

The move comes amidst mounting concerns over global greenhouse gas (GHG) emissions, which continue to rise despite nearly a decade of post-Paris Agreement climate change negotiations. In 2024, global temperatures are on track to exceed 1.5°C above the pre-industrial level for the fifth consecutive year, making it increasingly plausible that the United Nations' aspiration to limit warming to 1.5°C by 2030 becomes unattainable.

China's position as a major emitter remains contentious. Despite its emissions now surpassing those of the European Union, China continues to maintain its developing country status and resist formal accountability for its historical GHG emissions.

Developing countries will not be giving up on their funding demands, however, with COP29's "Baku to Belém Roadmap to 1.3T" aimed at scaling up climate finance at next year's U.N. conference in Brazil (COP30). The global stocktake decision urges signatories to the Paris Agreement to submit new nationally determined contributions (NDCs) to cut GHG emissions by February 2025.

The Biden administration has faced criticism for its relatively lower international climate finance targets compared to countries like China and Saudi Arabia. As a result, U.S. climate finance is likely to be sharply reduced under the incoming Trump administration, with plans to reduce total U.S. government-to-government grants to $300 million in 2024.

President-elect Donald Trump's stance on climate change remains uncertain, but he will likely roll back Biden administration pledges to cut U.S. GHG emissions by 50-52 percent below their 2005 levels. Despite the incoming president's repeated promise to "drill, baby, drill," American greenhouse gas emissions are expected to continue declining until at least 2030, according to an analysis by Carbon Brief.

The Baku COP29 meeting marks a mixed bag for climate action in recent years, leaving concerns lingering about whether the collective efforts of global leaders can adequately address the pressing issue of man-made climate change.