COP29 Ends with Climate Finance Deal Amidst Global South’s Discontent

After 30 hours of intense overtime negotiations, the UN Climate Summit (COP29) concluded on Sunday with a climate finance deal that left the Global South deeply dissatisfied. The New Collective Quantified Goal (NCQG) sets a target for developed nations to contribute $300 billion annually by 2035, far below the demands of developing countries grappling with the escalating impacts of climate change.

The summit was marred by tension, with walkouts by least developed countries (LDCs) and small island states (AOSIS), as well as protests by civil society organizations. Despite these hurdles, COP29 President Babayev Mukhtar declared the adoption of the NCQG in the early hours of Sunday, though India and other nations voiced strong objections.

“A Betrayal of Trust”: Developing Nations Respond at COP29

The $300 billion per year target—part of a broader $1.3 trillion annual climate finance goal—has been widely criticized as inadequate and unambitious. For many, the amount feels like an inflation-adjusted version of the unfulfilled $100 billion annual pledge made by developed nations over a decade ago.

India, speaking at the plenary, called the new goal an “optical illusion” that fails to address the scale of climate challenges faced by vulnerable nations. Ambassador Ali Mohamed of Kenya, representing the African Group, echoed this sentiment, describing the goal as “too little, too late” and undermining the aspirations of the Global South.

Evans Njewa of Malawi, speaking on behalf of the 45-nation LDC group, delivered a scathing critique: “Once again, the countries which are most responsible for the climate crisis have failed us. This is not just a failure; it is a betrayal.” He accused wealthy nations of showing no leadership, ambition, or regard for billions of vulnerable people.

Delegates from countries like Cuba, Nigeria, and Bolivia further condemned the deal for perpetuating an inequitable system where developed countries neglect their historical responsibilities.

Funding Mechanisms and the Equity Debate in COP29

One major sticking point is the way the $300 billion is to be delivered. Developing countries had sought grants, concessional financing with low interest rates, and other non-debt-inducing mechanisms. However, the NCQG relies heavily on private sector contributions and multilateral development banks (MDBs), raising concerns about whether funds will reach those most in need.

Dr. Arunabha Ghosh, CEO of the Council on Energy, Environment, and Water (CEEW), pointed out that the agreement undermines equity by encouraging even developing countries to make voluntary contributions. He argued that this dilutes the responsibility of wealthier nations to bear the financial burden of climate action.

A Missed Opportunity for Climate Justice

Experts warn that the insufficient funding commitment jeopardizes future climate action, especially as countries prepare to submit updated national climate action plans by February. The Global South, which hoped for robust financing to aid mitigation and adaptation efforts, feels abandoned once again.

Avantika Goswami, Programme Manager at the Centre for Science and Environment (CSE), expressed frustration: “The Global North has no right to demand mitigation ambition from the Global South after abandoning it with this meagre offer. This was the last remaining window for the Global North to pay its fair share; they have failed.”

Fifteen years after the initial $100 billion pledge went unmet, the bloc of 130 nations under G77+ China had demanded $500 billion annually in public grants from developed nations. The adopted goal fell far short of these expectations.

Tensions and Deadlocks at COP29

The negotiations reached a stalemate as LDCs and AOSIS staged walkouts, protesting the lack of commitment from wealthier nations. For hours, COP29 leaders struggled to bridge the divide. At approximately 2:30 a.m., COP29 President Babayev Mukhtar gavelled the adoption of the NCQG, with India formally objecting to the way the decision was pushed through.

A Small Step, but Far from the Finish Line

While many remain disheartened, some view the $300 billion goal as a starting point. Ani Dasgupta, President and CEO of the World Resources Institute, commented, “The $300 billion goal is not enough, but it is an important down payment towards a safer future. The hard work now begins to scale up all sources of finance to deliver the $1.3 trillion developing countries need by 2035.”

The outcome of COP29 highlights a widening gap between developed and developing nations on climate finance, leaving questions about how global climate goals can be met without stronger commitments.

What’s Next for Climate Finance?

As impacts of climate change intensify, the pressure on wealthy nations to meet their obligations will only grow. The NCQG’s reliance on private sector funding, combined with the lack of grants, poses significant challenges for climate-vulnerable nations.

The Global South will continue to push for a fairer system, while the world watches how developed nations respond to calls for climate justice. For now, COP29’s outcome serves as a reminder that the journey toward equitable climate finance remains fraught with challenges.