COP29: Developed Nations Propose $200–300 Billion Finance Goal, Developing Countries Demand More

The ongoing COP29 climate summit in Baku has witnessed heated discussions over the New Collective Quantified Goal (NCQG) for climate finance. Developed nations have floated a proposal to provide $200–300 billion annually as part of the core public finance for developing nations, supplemented by private investments. However, this figure falls significantly short of the $600 billion in grants demanded by developing countries, who argue that anything less would fail to meet their mitigation and adaptation needs.

Core Finance Goal Under Debate

The proposed $200–300 billion finance target from developed nations is significantly higher than the $100 billion annual goal set in the Paris Agreement but remains far below the expectations of developing countries. The European Union is reportedly considering putting forward this figure formally. However, observers note that developing nations, including India, view this amount as inadequate to address the urgent challenges posed by the climate crisis.

The Independent High-Level Expert Group on Climate Finance has called for a much larger target—$1 trillion annually by 2030—to be mobilized for emerging markets and developing countries, excluding China. This would need to rise to $1.3 trillion by 2035 to align with the goals of the Paris Agreement.

Demands from Developing Nations

Representatives from developing countries have voiced strong opposition to the lower figures proposed by developed nations. Diego Pacheco, spokesperson for the Like-Minded Developing Countries coalition, stated:

“The goal must be at least $1.3 trillion annually, with a minimum of $600 billion provided as grants through public finance. Anything less undermines the developed countries’ legal obligations under the Paris Agreement.”

Developing nations have also emphasized the need for clarity on the form of financing—whether it will be grants, loans, or private investments—and the proportion allocated to adaptation versus mitigation.

Evolving Role of Contributors

A contentious issue at COP29 has been the role of newer contributors, such as China and Saudi Arabia. Developed countries argue that the traditional designation of “rich nations,” which dates back to the Kyoto Protocol, no longer reflects current economic realities. However, developing nations insist that any renegotiation of the Paris Agreement’s terms would be unacceptable, as Article 9.1 obligates developed nations to provide financial resources to assist developing countries.

For the first time, China has reported a voluntary climate finance contribution of $3.1 billion, signaling a shift in its stance. However, developed nations continue to push for an expanded donor base to account for the growing economic influence of