The COP29 president's statement regarding the draft climate finance package has set off a flurry of activity among countries. Early Thursday, a draft text on a new climate finance package for the developing world was met with rejection by every signatory to the UN climate convention. However, the COP29 presidency remains hopeful, stating that the draft is far from final and inviting countries to submit bridging proposals. This upcoming version, due Thursday night, is expected to be more refined and focused on finding consensus.

Key Challenges and Disputes

The text reveals a significant issue as developed countries are still avoiding a crucial question - how much climate finance are they willing to provide developing countries annually starting from 2025? The developing world insists on at least USD 1.3 trillion annually, which is 13 times the 2009 pledge of USD 100 billion. Despite some indications from European Union nations of a potential target of USD 200 billion to USD 300 billion per year, the critical objective remains an "empty placeholder" in the words of Colombian Environment Minister Susana Muhamad. 1: This lack of a clear financial commitment is causing frustration among developing nations. They argue that the problem is not a lack of funds but rather a geopolitical game being played. Adonia Ayebare, the G77 chair, has denounced the developed countries' attempt to turn the climate finance package into a global investment goal that relies on multiple sources. Bolivia's Diego Pacheco, on behalf of Like-Minded Developing Countries including India, expressed disappointment that the draft text does not even specify a provisional mobilization quantum. 2: African Group of Negotiators chair Ali Mohamed highlighted the deep concern over the "lack of mention of quantum." He emphasized that this is the main mandate for which they are at COP29. European Union's climate chief Wopke Hoekstra called the draft "imbalanced, unworkable, and not acceptable," further emphasizing the urgency for a more concrete financial proposal.

Impact on Specific Nations

Pakistan, still recovering from the 2022 floods, sees an ambitious outcome on the climate finance package as crucial. However, the current text lacks "concrete numbers on the quantum," leaving them in a vulnerable position. Meanwhile, Panama's negotiator Juan Carlos Monterrey Gomez criticized developed countries for calling the developing countries' proposal of USD 1.3 trillion a year "extreme and unreasonable" while spending USD 7 trillion on fossil fuel subsidies. 1: These examples highlight the diverse perspectives and the urgent need for a resolved climate finance package. Developing nations are demanding that the majority of the funding come directly from developed countries' public coffers, as they have little trust in the private sector's accountability. 2: On the other hand, the US and EU are pushing for a more expansive global investment goal that combines various sources. This has led to a rift between developed and developing nations, with developing nations seeing it as a way to avoid responsibility for past emissions.

The Heart of the UN Climate Talks

At the core of this year's UN climate talks is the new climate finance goal or NCQG, aimed at assisting developing countries in cutting emissions and coping with climate change impacts. Developing nations firmly believe they need at least USD 1.3 trillion a year to keep up with the escalating challenges. 1: But trust is a scarce commodity. Developed nations only reached the USD 100 billion target in 2022, two years late, and a significant portion of those funds were in the form of loans. This has added to the financial strain on already disaster-stricken nations. 2: As the negotiations continue, the question of how to bridge the gap between developed and developing nations on climate finance remains at the forefront. The search for a balanced and acceptable solution is ongoing, with countries presenting their proposals and engaging in intense discussions.