Developing nations have expressed their strong dissatisfaction with the $250bn annual finance offer from the rich world. This amount falls significantly short of their demands and is causing a stir at the Cop29 climate summit in Azerbaijan.

"Rich World's Climate Finance Offer: A Disappointment for Developing Nations"

Initial Reaction and Disparity

Developing countries have responded angrily to the $250bn offer. Juan Carlos Monterrey Gómez, Panama's climate envoy, emphasized that this is far from enough. What they need is at least $5tn a year, with their requested amount being $1.3tn. This $1.3tn is just 1% of global GDP, yet it seems crucial for saving the planet. When divided among all the developing countries in need, $250bn amounts to very little. It fails to address the massive bills they face after droughts and flooding. As Mohamed Adow from Power Shift Africa pointed out, it's a slap in the face and no developing country will be fooled.

Finance Components and Layers

According to the new deal text, developing countries are set to receive a total of at least $1.3tn a year by 2035. This includes the $250bn from developed countries along with other sources like private investment. The offer from developed countries is supposed to form the inner core of a "layered" finance settlement. Alongside this, there is a middle layer of new forms of finance such as taxes on fossil fuels and carbon trading. And an outermost layer of private sector investment in projects like solar and windfarms. Economists have calculated that $1.3tn is the amount needed for external finance to tackle the climate crisis. However, many activists demand more, with figures of $5tn or $7tn a year being put forward based on developed countries' historical responsibilities.

Criticisms and Uncertainty

Civil society groups have been highly critical of the offer. They have described it as a joke, an embarrassment, and an insult. They see it as the global north playing poker with people's lives. There is a sense of disappointment and anger among developing countries. The $250bn figure is significantly lower than the $300bn considered by some developed countries. Now, there will be further negotiations among countries, and potentially new iterations of this draft text. Avinash Persaud believes that while there may not be a perfect deal, they are getting closer to a landing zone.