Connor O’Brien in Phenomenal World:
The 29th Conference of the Parties to the UNFCCC (COP29) was the much-anticipated “finance COP.” Negotiators were tasked with replacing the previous $100 billion target with a more ambitious New Collective Quantified Goal on Climate Finance (NCQG). After tense last-minute discussions, the developed countries eventually committed to “taking the lead” on providing “at least [$]300 billion per year by 2035,” out of a $1.3 trillion total.
While nominally tripling the previous $100 billion target for developed country financing, the new goal incorporates funding from “a wide variety of sources.” When combined with the effects of inflation, this makes the NCQG at best marginally higher than the previous target, a reality that has generated withering criticism from activists and climate vulnerable states in the global South.
The return of US President Donald Trump has cast further doubt on the credibility of the NCQG. Having already withdrawn again from the Paris Agreement and announced a 90-day USAID spending freeze, the Trump Administration will likely redirect much if not all of the US’s planned multi-billion dollar annual climate finance contributions in the coming years, creating a sudden funding shortfall that will be difficult to fill.
Global South states have already begun to look elsewhere to meet their financing needs.
More here.
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