COP29 Day 3: Finance Text Still in Flux, Brazil Updates Climate Targets

On Day three of COP29, negotiators focused on a complex draft of the new climate finance goal, while Brazil unveiled its updated climate plan, aiming for a 59–67% emissions reduction by 2035.

The early draft of the New Collective Quantified Goal (NCQG) for climate finance caused concern among negotiators, as it ballooned to 34 pages with multiple options and proposals. Developing countries are pushing for a significant increase in the $100 billion per year finance target, with proposals ranging from $1.3 trillion to $2 trillion annually. The draft includes options for who should contribute, with developed countries expected to shoulder the bulk of the financial burden. The High Ambition Coalition, which includes G7 members like Canada, France, Germany, and the Netherlands, reinforced this position, stating, “Trillions of dollars are required… Developed countries must continue to take the lead and live up to existing finance commitments.” Negotiators have requested that the co-chairs streamline the draft by removing redundancies and clarifying options. 

Meanwhile, Brazil presented its updated Nationally Determined Contribution (NDC), aiming to cut emissions by 59% to 67% from 2005 levels by 2035, largely by preserving its carbon-storing forests. However, critics point out that Brazil’s plan contradicts itself by also aiming to increase oil and gas production by 36% by the same year. Shady Khalil from Oil Change International stated, “Brazil cannot claim to be at the ‘forefront of the global energy transition’ unless it puts an immediate end to new fossil fuel projects.” The updated Nationally Determined Contributions (NDC) reflects Brazil’s push to end deforestation by 2035, with plans to improve land management and potentially use carbon credits to raise funds. 

In other developments, Multilateral Development Banks (MDBs) have committed to ramping up climate finance, with a goal to reach $170 billion per year by 2030, a 30% increase from 2023. However, Nadia Calviño, president of the European Investment Bank, acknowledged the need for further action, saying, “The family of multilateral development banks is walking the talk.”