Developing Nations Reject $200bn Climate Finance Proposal at COP29

At COP29, large developing countries strongly rejected a private proposal suggesting $200-300 billion in climate finance for emerging economies, calling the amount “unacceptable.” Bolivia’s negotiator, Diego Pacheco, speaking for the Like-Minded Developing Countries (LMDC) group, said, “We are unable to fathom this $200 billion to step up ambition in developing countries,” adding, “Is it a joke?”

Developed countries, including the EU, are still negotiating the amount of finance they will provide under the new climate finance goal (NCQG). Germany’s climate envoy, Jennifer Morgan, stated that the EU is working on a “modern and fair” approach but has not yet disclosed a concrete number.

Developing countries also voiced frustration over a lack of progress on emission reductions. Pacheco criticised the talks as “totally imbalanced,” focusing too much on mitigation without addressing the finance and adaptation needs of vulnerable nations. “All we hear is mitigation, mitigation, and more mitigation,” he said.

On Wednesday, Germany’s climate envoy, Jennifer Morgan, emphasised that the EU is taking the issue seriously, aiming for a feasible yet ambitious goal. She stated that no EU or German figure has been set because they are striving for a fair and modern approach to climate finance.

 

As COP29 progresses, time pressure is mounting. 

Australia’s environment minister Chris Bowen reported that the figures under consideration for an overall “mobilised” climate finance goal of $1.3 trillion include $440 billion, $600 billion, and $900 billion, all proposed by developing countries. Egypt’s environment minister, Yasmine Fouad, noted that debates over the structure of the climate finance goal are ongoing, with differing views on whether private investments should be included.

With the conference nearing its end, WWF’s Stephen Cornelius called for urgent political guidance, as key issues such as the size of the finance goal, who will contribute, and how funds will be allocated remain unresolved. He urged COP29 leadership to use their authority and diplomacy to reach an ambitious agreement by the summit’s close on Friday.

 

COP29 Day 8: Climate Finance, Youth Voices, and Urgency for Action