International negotiations on climate finance ended without significant progress this week, just two months before COP29 in Azerbaijan. The talks aimed to address how much wealthy nations should pay to help developing countries transition to renewable energy. The discussions, held over four days, concluded on Thursday without a breakthrough, raising concerns from both officials and civil society groups.
Mukhtar Babayev, Azerbaijan’s ecology and natural resources minister and COP29 president, expressed disappointment over the stalemate. He called for more determination and leadership from all parties involved. Babayev urged nations to bridge their differences before the November 11-22 summit in Baku. He warned that sticking to rigid positions would make reaching an agreement at COP29 more difficult.
Wealthy nations face pressure to increase their climate financing beyond the current $100 billion commitment, set to expire in 2025. Developing countries argue that $1 trillion per year is necessary to cope with climate change and transition to renewable energy. Under the 1992 UN climate accord, industrialized countries agreed to provide financial assistance to developing nations, acknowledging their historical responsibility for emissions.
However, the United States and European Union are now pushing for more contributors, including oil-rich Gulf states and China. These nations, despite being major emitters, have resisted calls to contribute to the fund. The disagreement has slowed negotiations, with both sides failing to reconcile their positions.
The UN published a draft document in late August outlining seven potential options for a finance deal. However, negotiators have yet to reach consensus. Rebecca Thissen from the Climate Action Network said progress had been made, but warned it could collapse at any moment. Mariana Paoli from Christian Aid criticized developed countries for undermining the talks by failing to propose a specific financial target.
Azerbaijan plans to host a ministerial meeting on September 27 during the UN General Assembly, hoping to narrow the gap before COP29.