Baku, Azerbaijan – The COP29 United Nations Climate Conference in Baku, Azerbaijan, has concluded with a groundbreaking agreement to allocate $300bn annually to help the world’s poorest nations combat the devastating effects of climate change. This new target supersedes the previous pledge of $100bn per year, which was fulfilled in 2022, two years later than originally promised.

The conference, which ran into overtime as negotiators from nearly 200 countries sought consensus, saw intense debates over the scale of financial support required. Developing countries, severely impacted by storms, floods, and droughts, rejected Azerbaijan’s initial proposal of $250bn as insufficient. The eventual agreement on $300bn was reached as a compromise to end the stalemate.

Delegates also established rules for a global carbon credit trading system, which proponents believe will unlock significant investment in climate mitigation projects. However, despite this progress, concerns remain over how the funds will be raised. Wealthy nations such as the United States and those in the European Union are expected to shoulder much of the financial burden, but ongoing divisions between developed and developing countries persist. Developing nations continue to question whether long-term promises will be honoured, while richer governments face domestic financial pressures.

US President Joe Biden hailed the agreement as an “important step” in global efforts to combat climate change, reaffirming America’s commitment despite potential policy shifts under his successor, Donald Trump, who has previously expressed scepticism towards climate initiatives.

The outcome of the COP29 summit aligns with the objectives of the 2015 Paris Climate Agreement, which aims to limit the global temperature rise to 1.5 degrees Celsius above pre-industrial levels. However, with the World Meteorological Organisation reporting that global temperatures have already risen by 1.3 degrees, the urgency for meaningful action remains critical.