Cop29 draft finance deal rejected as negotiators walk out of UN climate talks

The latest rough draft of a deal on climate finance is thought to have been soundly rejected by developing economies at Cop29, a day after the UN summit was scheduled to finish.

Negotiators from rich and poor nations are huddled in one room as the talks to reach a deal on money for developing countries went into overtime in Azerbaijan.

A group of negotiators from the Least Developed Countries (LDC) bloc and the Alliance of Small Island States walked out because they did not want to engage with the rough draft in Baku.

The “current deal is unacceptable for us. We need to speak to other developing countries and decide what to do”, Evans Njewa, the chairman of the LDC group, said.

The last official draft on Friday pledged 250 billion dollars annually by 2035, more than double the previous goal of 100 billion dollars set 15 years ago but far short of the annual one trillion-plus dollars that experts say is needed.

The rough draft discussed on Saturday was for 300 billion dollars, sources told the Associated Press.

Developing countries have accused the richer nations of trying to get their way – and a small financial aid package – via a war of attrition.

Meanwhile, small island nations, particularly vulnerable to climate change’s worsening effects, accused the host country presidency of ignoring them for the entire two weeks.

Panama chief negotiator Juan Carlos Monterrey Gomez said: “Every minute that passes we are going to just keep getting weaker and weaker and weaker.

“They don’t have that issue. They have massive delegations,” Mr Gomez said, as he watched a delegation of about 20 people from the EU enter the room after shortly after one of his own colleagues left.

“This is what they always do. They break us at the last minute. You know, they push it and push it and push it until our negotiators leave. Until we’re tired, until we’re delusional from not eating, from not sleeping.”

“The risk is if developing countries don’t hold the line, they will likely be forced to compromise and accept a goal that doesn’t add up to get the job done,” he said.

Cedric Schuster, the Samoan chairman of the Alliance of Small Island States issued a statement saying they “were not part of the discussion that gave rise to these imbalanced texts” and asked the Cop29 presidency to listen to them.

Wealthy nations are obligated to help vulnerable countries under an agreement reached at these talks in Paris in 2015.

Developing nations are seeking 1.3 trillion dollars to help adapt to droughts, floods, rising seas and extreme heat, pay for losses and damages caused by extreme weather, and transition their energy systems away from planet-warming fossil fuels and towards clean energy.

Mr Gomez said even the increased 300 billion dollar figure is “still crumbs”.

“How do you go from the request of 1.3 trillion dollars to 300 billion dollars? I mean, is that even half of what we put forth?” he asked.

On Saturday morning, Irish environment minister Eamon Ryan said there will likely be a new number for climate finance in the next draft, adding: “But it’s not just that number – it’s how do you get to 1.3 trillion dollars?”

Mr Ryan said any number reached at the summit will have to be supplemented with other sources of finance, for example through a market for carbon emissions where polluters would pay to offset the carbon they produce.

Teresa Anderson, the global lead on climate justice at Action Aid, said that in order to get a deal, “the presidency has to put something far better on the table”.

“And if they don’t, then LDCs (Least Developed Countries) are unlikely to find that there’s anything here for them.”

Alden Meyer of the climate think tank E3G said it is still up in the air whether a deal on finance will come out of Baku at all.

“It is still not out of the question that there could be an inability to close the gap on the finance issue,” he said. “That obviously is not an ideal scenario.”

Jiwoh Emmanuel Abdulai, the Sierra-Leone environment minister, echoed that sentiment, saying “a bad deal may be worse than no deal for us”.

Nations were also angry at potential backsliding on commitments to slash fossil fuels. German foreign minister Annalena Baerbock called out rich fossil fuel emitters who she said have “ripped off” climate vulnerable states.

“We are in the midst of a geopolitical power play by a few fossil fuel states,” Ms Baerbock said.

“We have to do everything to come toward the 1.5C pathway” of keeping warming below that temperature limit since pre-industrial times, she said.

But despite the fractures between nations, some still held out hopes for the talks.

“We remain optimistic,” said Nabeel Munir of Pakistan, who chairs one of the negotiating committees.

Cop29 climate champion Nigar Arpadarai added: “We have no choice.”