‘Optical illusion’: Key takeaways from COP29 at Baku

Climate finance deal criticised at COP29 as inadequate, lacking real money and clear grants for developing countries.

Rich countries have pledged to contribute $300bn a year by 2035 to help poorer nations combat the effects of climate change after two weeks of intense negotiations at the United Nations climate summit (COP29) in Azerbaijan’s capital, Baku.

While this marks a significant increase from the previous $100bn pledge, the deal has been sharply criticised by developing nations as woefully insufficient to address the scale of the climate crisis.

This year’s summit, hosted by the oil and gas-rich former Soviet republic, unfolded against the backdrop of a looming political shift in the United States as a climate-sceptic Donald Trump administration takes office in January. Faced with this uncertainty, many countries deemed the failure to secure a new financial agreement in Baku an unacceptable risk.

Here are the key takeaways from this year’s summit:

While a broader target of $1.3 trillion annually by 2035 was adopted, only $300bn annually was designated for grants and low-interest loans from developed nations to aid the developing world in transitioning to low-carbon economies and preparing for climate change effects.

Under the deal, the majority of the funding is expected to come from private investment and alternative sources, such as proposed levies on fossil fuels and frequent flyers – which remain under discussion.

“The rich world staged a great escape in Baku,” said Mohamed Adow, the Kenyan director of Power Shift Africa, a think tank.

“With no real money on the table, and vague and unaccountable promises of funds to be mobilised, they are trying to shirk their climate finance obligations,” he added,