By Solange A. Barreira
Baku‘s recent decision has left a disappointing framework of climate financing, with a meager allocation of only US$300 billion, which stands in stark contrast to the escalating urgency and magnitude of the climate crisis, and presents significant gaps that must be addressed at the next climate conference.
In a dramatic turn of events after prolonged deadlock, escalating tensions, and looming threats of collapse, COP29 reached consensus on a new climate financing target known as the NCQG during the early hours of Sunday morning (November 24). This critically important decision faced fierce resistance from developing nations, who decried it as “an insult” and a “flagrant violation of climate justice.” The finalized agreement provides $300 billion annually by 2035 for climate action in developing nations, a stark shortfall when juxtaposed with the $1.3 trillion that experts assert is necessary to effectively combat climate change in vulnerable regions.
Moreover, the agreed-upon text cleverly sidesteps the direct accountability of developed nations by merely acknowledging them as “at the forefront” of climate efforts. This leniency raises concerns since it does not stipulate that the funds must come from public financing, risking a dilution of sources and a lack of accountability. Furthermore, the framework allows a portion of the allocated funding to be funneled through loan mechanisms, thus introducing the peril of further debt accumulation that developing nations can ill afford.
“The financial agreement finalized today in Baku distorts the intent of the UNFCCC and undermines any principled notion of climate justice. Under the guidance of a profoundly ineffective presidency, affluent nations have evaded their responsibilities once more, effectively placing the financial burden on developing countries,” lamented Claudio Angelo, International Policy Coordinator at Observatório do Clima. He emphasized that Brazil is now faced with the Herculean task at COP30 of not only securing increased financing but also of mending the fractured trust between nations.
To contextualize the implications: if we were to distribute the paltry $300 billion among the 45 least-developed countries—the nations most vulnerable to the ravaging effects of climate change—each would receive approximately $6.6 billion per year. This sum pales significantly when we consider that the estimated cost for aiding and recovering Rio Grande do Sul after this year’s catastrophic floods is projected to be BRL 100 billion (around $17 billion). In stark contrast, Brazil’s 2023 Family Farming Plan earmarked over BRL 400 billion (close to $69 billion) in credit for agribusiness, highlighting a stark misalignment in priorities.
Stalemate
“In Dubai, we reached a consensus that our trajectory must adhere to the 1.5°C benchmark set by the Paris Agreement, which necessitates a dramatic tripling of renewable energy sources, a doubling of efficiency measures, and a definitive transition away from fossil fuels. Moving forward from here, our responsibility is to mobilize the requisite resources to fulfill these essential commitments,” asserted Silva. She further articulated the priorities in the lead-up to next year’s pivotal conference in Belém: “The central focus for COP30 will revolve around aligning our commitments—NDCs—with the ambitious targets necessary to achieve the critical 1.5°C threshold. The upcoming COP30 in Belém presents monumental challenges that are only surmountable through the collective effort and collaboration of all parties involved,” she emphasized.
Brazil’s pivotal role in this process was underscored by Marcio Astrini, Executive Secretary of Observatório do Clima, who expressed hope that COP30 can effectively bridge the gaps left in the wake of Baku’s decisions: “The presidency during COP29 was a dismal failure, overshadowed only by the inadequacy of the approved text itself, which is woefully insufficient to adequately tackle the climate emergency. The outcome from Baku starkly illustrates how wealthier nations are sidestepping their responsibilities, leaving unresolved financial burdens. Under Brazil’s leadership, COP30 must harness competence and unwavering dedication to amend these huge gaps, elevate ambition, and ensure the 1.5°C goal remains viable,” he declared.
**Interview with Claudio Angelo: COP29’s Climate Financing Framework**
**Interviewer:** Welcome, Claudio Angelo, International Policy Coordinator at Observatório do Clima. Thank you for joining us to discuss the recent COP29 climate conference in Baku. Many have expressed disappointment with the financial commitments made there. Can you explain the main concerns surrounding the $300 billion annual allocation for climate action in developing nations?
**Claudio Angelo:** Thank you for having me. The $300 billion figure, while it may seem substantial, is simply inadequate when you consider that experts estimate we actually need around $1.3 trillion to effectively tackle climate crises in vulnerable regions. This shortfall is a major concern, especially since developing nations are already struggling with climate-related disasters. What we see is a disconnection between the urgency of the climate crisis and the level of support that affluent countries are willing to provide.
**Interviewer:** Critics of the agreement argue that it undermines climate justice. Can you elaborate on that?
**Claudio Angelo:** Absolutely. The agreement acknowledges developed nations as being “at the forefront” of climate efforts, yet it does not hold them accountable for providing the necessary funds. This lack of obligation towards public financing raises serious concerns about the reliability and integrity of the funding that developing nations can expect. Moreover, allowing loans to be part of this financing creates the risk of further debt for already struggling economies, which is counterproductive to the goal of sustainable development.
**Interviewer:** You mentioned the task ahead for Brazil at COP30. What challenges will your country face in securing better financing and restoring trust?
**Claudio Angelo:** The challenges are significant. Brazil must advocate vigorously for increased funding, moving beyond this current paltry allocation. Beyond the financial figure, we need to foster a sense of trust between nations that has been fractured. Developing countries must feel that their needs are being recognized and addressed, not just at the negotiating table but in tangible commitments. Our reputation as a leader in climate policy is on the line, and we need to rebuild that relationship with both financial pledges and moral accountability.
**Interviewer:** Lastly, how do you feel about the future role of financial mechanisms in climate action?
**Claudio Angelo:** It’s critical that we approach financial mechanisms with caution. While financing is vital, if it’s not structured responsibly, it can lead to unsustainable debt burdens. The focus shouldn’t just be on the amount of money but on ensuring that these funds lead to impactful, long-lasting solutions for climate resilience. We need a strategy that prioritizes grants over loans and holds developed nations genuinely accountable for their contributions. Looking ahead, stakeholder collaboration and transparency will be key to making meaningful progress in the next climate conference and beyond.
**Interviewer:** Thank you, Claudio. Your insights on the COP29 outcomes and the ongoing challenges are incredibly valuable as we continue to navigate the complexities of climate finance.
**Claudio Angelo:** Thank you for having me. Together, we can strive for a more equitable and just approach to climate action.
