'Death sentence for millions': COP29's proposed $250b annual climate finance pledge draws criticism from advocates, experts

The COP29 climate summit presidency released a draft finance deal on Friday (22 November) that would have developed nations take the lead in providing $250 billion per year by 2035 to help poorer nations - a proposal that drew criticism from all sides.

World governments represented at the summit in the Azerbaijan capital Baku are tasked with agreeing a sweeping funding plan to tackle climate change, but the talks have been marked by division between wealthy governments resisting a costly outcome and developing nations pushing for more.

Here's what the experts said regarding the proposal:

M Zakir Hossain Khan, chief executive, Change Initiative told The Business Standard, "It is clear that they kept open doors for loan, a cycle of debt for developing countries. They are not talking about debt relief; they are talking about debt sustainability.

"It means encouraging loans. By this thousands of people of developing countries will go to under poverty line and will fall into debt trap. In the name of loan there will be created a new climate colonialism. Moreover, the fund for just transition must be additional and fund for loss and damage must be grant basis," he added.

Jess Beagley, policy lead at the Global Climate and Health Alliance, a consortium of more than 200 health professional and health civil society organisations from around the world said, "If COP29 agrees on the text shown to us today, it will sign a death sentence for millions. Such a deal would be a bad deal not just for developing countries already under pressure from the climate crisis, but for the entire world."

Harjeet Singh, climate activist and Global Engagement Director for the Fossil Fuel Non-Proliferation Treaty Initiative said, "It is a disgrace that despite full awareness of the devastating climate crises afflicting developing nations and the staggering costs of climate action—amounting to trillions—developed nations have only proposed a meagre $250 billion per year.

"To add insult to injury, this paltry sum includes loans and lacks the crucial commitment to grant-based finance, which is essential for developing nations to both address climate impacts and transition away from fossil fuels."

He said, "The trust has been shattered; developing countries must stand firm. Rejecting this is a stand for dignity—no deal is better than a bad deal, especially when it disrespects those bearing the brunt of a crisis they did not create."

According to the draft deal, adaptation finance needs are estimated at $215–387 billion annually up until 2030 also affirms balanced mitigation and adaptation fund, however, still it was not decided.

It is also remained unsolved the balanced allocation between adaptation and mitigation. The draft acknowledges the need for public and grant based resources and highly concessional finance, particularly for adaptation and responding to loss and damage in developing nations.

Dr Jeni Miller, executive director of the Global Climate and Health Alliance, "The latest COP29 climate finance proposal makes a mockery of the UNFCCC process that should not only address the legitimate needs of developing countries, but also drive home the legitimate responsibilities of wealthy, developed nations." 

YouthNet Global, a grassroots youth organisation dedicated to climate justice, has strongly condemned the lack of significant progress on climate finance at COP29.

The organisation voiced its deep frustration over the newly proposed target of $250 billion per year for developing countries, calling it "grossly insufficient" and an "insult" to the Global South.

While the goal is considered a step forward in addressing the climate finance gap, it has faced strong opposition from developing nations, who argue that the target falls far short of the $1.3 trillion per year needed to meet climate action needs by 2035, the organisation stated.

Sohanur Rahman, executive coordinator of YouthNet Global, expressed his dismay, stating, "This is a slap in the face to communities in the Global South who are already bearing the brunt of climate change impacts."

He criticised the inclusion of funds mobilized by Multilateral Development Banks (MDBs), stating that such funds do not address the immediate needs of nations most affected by climate disasters.

He also highlighted the lack of commitments for Loss and Damage financing as a key issue, emphasising the global community's failure to hold developed nations accountable.