Developing nations reject $250 billion climate offer at COP29: Here's why

The proposal, which would see funds raised by 2035, increased from the existing $100 billion annual commitment but fell far short of what experts say is necessary to address the climate crisis.

The deal faced immediate criticism, with Tina Stege, the climate envoy for the Marshall Islands, condemning it as "shameful." The island nation, along with many others vulnerable to rising seas, has called for greater support, the AFP reports.

The Alliance of Small Island States, echoing this sentiment, described the offer as showing "contempt for our vulnerable people."

Ali Mohamed, chair of the African Group of Negotiators, called the proposal "totally unacceptable and inadequate," warning that it would lead to "unacceptable loss of life" in Africa and beyond.

Developing nations, including China, had previously demanded at least $500 billion to help build resilience to climate change and reduce emissions.

While the United States, led by the outgoing Biden administration, maintained that $250 billion would require "extraordinary reach," it signalled it was not prepared to negotiate for a higher sum.

Germany, facing its political challenges ahead of elections, argued that the costs of addressing climate change could not fall solely on governments and would require debt restructuring and other financial tools.

The draft text also set an ambitious goal of raising $1.3 trillion annually by 2035, with contributions coming not only from developed nations but the private sector. However, economists commissioned by the UN have argued that $250 billion is "too low" and inconsistent with the global climate targets agreed in previous talks.

Obed Koringo, a Kenyan activist, criticized the proposal as "a joke," declaring that "no deal is better than a bad deal." Yet, some experts, like Avinash Persaud from the Inter-American Development Bank, suggested the offer was a sign that negotiations were "within sight of a landing zone" after days of deadlock.

The negotiations have also highlighted tensions over the role of emerging economies like China, which, while the largest emitter of greenhouse gases, remains classified as a developing nation and prefers to provide climate assistance on its own terms. There were also calls for stronger language in the deal to commit to a global transition away from fossil fuels.

However, Saudi Arabia, speaking on behalf of the Arab Group, rejected any text targeting specific sectors, including fossil fuels.

Azerbaijan, as the host country, has faced criticism for its handling of the negotiations, with some describing the summit as "the worst COP in recent memory."

The country, which relies heavily on oil and gas exports, was accused of not having the expertise to steer the complex talks effectively.

As the summit enters its final stretch, the world faces an increasingly dire climate crisis. With 2024 poised to be the hottest year on record, extreme weather events like deadly storms, droughts, and historic floods have affected nations worldwide since the summit began, underscoring the urgency of reaching an effective global climate agreement.