As the COP29 climate talks enter their fourth day in Baku, Azerbaijan, negotiators are still waiting for a viable draft on climate finance. The current draft, which ballooned to 34 pages after an initial attempt to condense it into a 9-page document, remains overly complex and filled with redundancies, causing frustration among delegates.
Despite months of work, the draft still lacks clarity and has not moved negotiations forward. Several countries have called for the document to be condensed and organized by themes, without adding new ideas. The G77 and China group, in particular, urged the co-chairs to ensure the text reflects the diverse needs of all countries involved.
Global South negotiators have called for substantial financial support to address climate impacts, with the Like-Minded Developing Countries (LMDC) group requesting $1 trillion annually, and others such as the African Group and Pakistan pushing for even higher amounts. In contrast, developed nations are advocating for a broader global investment goal that includes funding from multiple sources, including private finance.
As the clock ticks down with just three days remaining, the lack of progress is causing increasing anxiety, especially since discussions stalled on Tuesday over disagreements about the framework. The issue at hand is the new climate finance goal (NCQG), which developed nations committed to mobilizing starting in 2025 to support climate action in developing countries.
At COP15 in 2009, a pledge was made to mobilize $100 billion annually, but that target was only met in 2022, with a significant portion coming in the form of loans. Developing nations continue to call for a more ambitious, grant-based approach that addresses mitigation, adaptation, and loss and damage due to climate impacts.
With trillions of dollars needed for climate adaptation and mitigation in the coming years, the stakes are high, and the next few days will be critical in shaping the outcome of the negotiations.
