How COP29 Displayed the Difficulty of Controlling Climate Change

COP29 was supposed to end Friday. But developing nations said a $250 billion pledge from the wealthier world was not enough. So they kept talking. Although there was almost no food left at the Baku Olympic Stadium, and many smaller nations left in protest, they continued negotiating. Then, in a final effort, a small group left the larger session. Two and a half hours later, early Sunday morning, they emerged with a $300 billion deal.

While the amount exceeded the expiring annual $100 billion pledge, developing nations had said they needed $1 trillion a year. You can see that except for 2022, they missed past financing goals:

COP29 Tension

COP29 sounds like a tense meeting. For finance, the politics of the wealthy world conflicted with developing nations’ needs. The developed world’s voting constituencies are concerned with inflation and national budgets they want to constrain. Meanwhile, we have less affluent countries saying that because the rich nations created the carbon emissions, it is their job to pay for the clean-up:

Then, further adding to the talks’ complexities, they had to decide where China fit in. As a gargantuan economy, they could be grouped with a wealthier world whose economic growth boosted greenhouse gases. But still, they remain a middle income nation with a per capita GNI estimated at $13,400 by the World Bank. Responding, China refused to accept the mandated high income pledge. Instead they said they would volunteer their financial support.

The final result was a $1.3 trillion promise to the developing world. However, just $300 billion would come from the grants and low-interest loans that they prefer. As for the balance, it could range from private investors to frequent flyer fees. No one is sure. But the developing nations do know they need the money to finance the pricier climate friendly technologies that will grow their own economies.

Our Bottom Line: COP29 Results

Beyond finance, the week’s issues ranged from a Saudi resistance to all of the conference’s missives to approving a carbon credits market. In two graphics, Bloomberg said it all (so that we can decide what is really a “win”):

My sources and more: Thanks to my Bloomberg Green emails for COP29 updates and so much more. From there, I located more detail at The Guardian, Reuters, and the NY Times.