With the clock ticking at COP29 in Azerbaijan, negotiators remain locked in intense discussions over the New Collective Quantified Goal (NCQG) on climate finance, struggling to resolve disputes over the scale and structure of support needed to aid vulnerable nations in their fight against climate change.
Developing countries are demanding $1.3 trillion annually to address loss and damage, adapt to climate impacts, and transition to clean energy systems. However, developed nations have so far offered proposals falling significantly short of this figure.
The host presidency has promised to release the first full draft text on Thursday morning, but immediately clarified that it was not the final text but aiming to provide a starting point for resolution. Lead negotiator Yelchin Rafiyev expressed cautious optimism, describing the draft as a “clear step forward,” though substantial decisions remain unresolved.
“There are still issues where all parties need to keep working to find a common ground and deliver a balanced outcome. I want to clarify that this text is not final. Based on the inputs from the parties, there would be elements in the final text which are not there in the draft,” he said and added that decisions taken in Baku will be essential to guide us from the first to the second decade of the Paris Agreement.
Contention is on how much the total amount of finance is needed
German climate envoy Jennifer Morgan said: “The most critical currency right now is trust — trust in the presidency and trust between and amongst parties.” She noted that the success of the talks depends heavily on the options presented by the presidency and the willingness of negotiators to overcome entrenched positions.
The primary points of contention revolve around three key questions. One, the total amount of finance to be mobilised, the balance between grants and loans, and the contributors to the fund. Proposals from developed nations range from $200 billion to $900 billion—figures developing countries argue are inadequate.
Bolivian negotiator Diego Pacheco, who is also the spokesperson of the Like-Minded Developing Countries group criticised these offers, saying, developed countries whose legal obligation is to provide finance continue to shift their responsibility to developing countries.
Adonia Ayebare, chair of the G77 plus China negotiating bloc, dismissed the lower figures, calling them a “joke” and said $1.3 trillion should be the headline target to reflect the scale of the climate crisis.
Ali Mohamed, chair of the African Group of Negotiators, voiced concern over the lack of progress on a concrete figure, stating, “There is a clear obligation for developed countries to support poorer countries, but up to now, we don’t seem to have a figure.”