Rich Countries Propose USD 250 Billion Climate Finance by 2035 Amidst Criticism from Developing Nations

In the final moments of the UN climate conference, developed nations proposed an increase in climate finance for developing countries. They suggested raising the amount from USD 100 billion to USD 250 billion annually by 2035. However, this figure falls short of the trillions needed to tackle the growing climate crisis. The proposal emerged after two weeks of negotiations, replacing an uncertain placeholder with a specific number.

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Developing nations have been vocal about their need for at least USD 1.3 trillion annually starting in 2025. This demand is part of their efforts to address escalating climate challenges. The new text calls for collective action to raise this amount by 2035, involving both public and private sources. It does not place the entire burden on developed countries alone.

Climate Finance Proposal Details

The draft text outlines that developed countries will raise USD 250 billion per year by 2035 from various sources. These include public and private, bilateral and multilateral, as well as alternative sources. Developing countries are also invited to contribute more, including through South-South cooperation. However, there are no specific amounts mentioned for least developed countries or small island states.

More than 190 countries are negotiating these climate finance obligations under the Paris Agreement of 2015. This agreement aims to limit global temperature rise to below 1.5 degrees Celsius compared to pre-industrial levels. The current proposal has drawn criticism from climate policy experts and observers who believe it is inadequate for developing nations.

R R Rashmi from The Energy and Resources Institute described the proposal as a compromised version of the goal. He noted that the language resembles previous decisions on climate finance goals and links future development flows to climate conditions. Avinash Persaud, an advisor on climate change, argued that the USD 250 billion commitment is insufficient given adaptation needs alone.

Vaibhav Chaturvedi from the Council for Energy, Environment and Water pointed out that accounting for inflation makes USD 250 billion by 2035 equivalent to USD 100 billion by 2020. He criticised the lack of grant or low-cost finance components in the proposal, calling it a bad deal for developing countries.

Reactions and Criticisms

Linda Kalcher from Strategic Perspectives remarked that counting all sources towards the USD 250 billion reads like a provocation. Li Shuo from China Climate Hub anticipated strong reactions to this figure, emphasising the importance of hearing what countries have to say now.

The UN climate conference in Baku required an agreement on a new climate finance package for developing nations. Despite ongoing discussions, developing countries continue to assert their need for substantial financial support to meet their climate challenges effectively.

The proposed increase in climate finance reflects ongoing efforts to address global warming but highlights significant gaps between what is offered and what is needed by developing nations. As negotiations continue, it remains crucial for all parties involved to find common ground and ensure adequate support for those most affected by climate change.