Developing Nations Demand Up to USD 900 Billion in Public Climate Finance at COP29, Criticise EU's Proposal

Developing countries are seeking up to USD 900 billion in public funding from a total of USD 1.3 trillion they aim to secure from developed nations. This request is part of a new climate finance package intended to reduce emissions and adapt to the impacts of climate change. The Like-Minded Developing Countries (LMDC) group has asked for USD 600 billion in public funding, supplemented by private finance at concessional rates.

Meanwhile, the Alliance of Small Island States (AOSIS) is advocating for USD 900 billion in government funding, while the Arab Group has proposed USD 440 billion. Although developed countries have not officially proposed a figure, European Union nations are discussing a global climate finance target ranging from USD 200 billion to USD 300 billion annually. EU climate commissioner Wopke Hoekstra stated that developed countries want to understand the package's components before committing to a specific figure.

Climate Finance Negotiations

At a press conference highlighting unity among developing countries, Diego Pacheco, lead negotiator for the LMDC, was asked about the EU's proposed USD 200 to USD 300 billion figure. His response was brief but pointed: "Is this a joke?" The G77, the largest negotiating bloc at the UN climate talks with over 130 developing nations, has demanded that the next draft text on the new climate finance package include a headline figure in the trillions.

"We need this figure as a headline in the text... The rest can be negotiated in the coming days," said Adonia Ayebare, the G77 chair. At the core of this year's UN climate talks is establishing a new climate finance goal to help developing nations cut emissions and adapt to worsening climate impacts. Developing countries argue they need at least USD 1.3 trillion annually—13 times the USD 100 billion pledged in 2009—to address growing challenges.

Challenges and Trust Issues

However, trust remains fragile as developed nations only met the USD 100 billion target in 2022, two years late, with around 70 per cent of funds provided as loans. This further burdens nations already grappling with climate disasters. Developing nations are pressing for most funding to come directly from developed countries' public budgets and reject heavy reliance on private-sector contributions, which they argue prioritize profit over accountability.

The developed world, led by the US and EU, wants a broader global investment goal that taps into public, private, domestic, and international sources. They are also calling on wealthier nations like China and Gulf states—classified as developing in 1992—to contribute, citing their changed economic status. Developing countries see this as an attempt to dodge responsibility for historical emissions by shifting the burden to those who industrialized more recently.

COP29 President Mukhtar Babayev remains hopeful for a timely closure of talks. However, the odds are slim as developed and developing nations remain locked in a standoff over key issues.