The United Nations Climate Conference (COP29) in Baku has confirmed, following a plenary session, a new agreement under which wealthy nations will allocate at least €300 billion annually to developing countries until 2035 to help them tackle climate change.
As highlighted, the €300 billion will support vulnerable and impoverished nations in coping with increasingly destructive extreme weather events and transitioning their economies to clean energy.
The approved documents also call on emerging economies, such as China, Singapore, and South Korea, as well as funds and individuals, to collaborate in achieving a broader financial goal of €1.3 trillion by 2035. This target will include additional financing from various public and private sources.
Wealthy nations, which bear significant responsibility for historical climate changes, initially agreed in 2009 to provide $100 billion annually by 2020 to developing countries. However, this commitment was only fulfilled in 2022, two years past the deadline.
The new agreement, however, demands that wealthy nations, including the US and European countries, ensure €300 billion in annual funding until 2035.
Some representatives from developing countries expressed disappointment with the scale of the proposed financial assistance. They have also requested that the funds be provided primarily as grants rather than loans, fearing that loans could further trap them in debt.
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