The recently concluded COP29 in Baku, Azerbaijan, has left a bitter taste for the global south. Hailed as the “finance COP,” it was expected to bridge the ever-widening chasm of trust between developed and developing nations. Yet, the pledges made fall woefully short of the ambitious demands necessary to address the intensifying climate crisis.
Developed nations have pledged $300 billion annually by 2035 under the new collective quantified goal (NCQG), a marked increase from the current $100 billion target. However, this is a drop in the ocean compared to the $1.3 trillion requested by developing countries. The financial chasm has left the vulnerable nations — already reeling under the weight of climate disasters — questioning the sincerity of the global north’s commitments.
This funding shortfall raises critical concerns about equity and justice. Developing nations, which contribute minimally to global greenhouse gas emissions, bear the brunt of climate change. These countries are grappling with extreme weather events, rising sea levels, food and water shortages, and displacement. These crises erode 5-10% of their GDP annually, further exacerbating economic vulnerabilities. Despite these stark realities, much of the promised climate finance has historically come as high-interest loans, deepening debt traps rather than offering a lifeline.
The insistence of developing nations on grants rather than loans is a reasonable and ethical demand. Loans saddle fragile economies with further financial stress, undermining their ability to invest in sustainable growth and resilience. Without a shift to grant-based funding, the rhetoric of climate justice remains hollow.
The marginal gains of COP29, such as finalizing the rules for carbon trading under Article 6 of the Paris Agreement, are commendable but insufficient. While the establishment of a global carbon market may foster cooperation, it is no substitute for direct financial assistance to those most in need. The focus must remain on ensuring that climate finance is accessible, equitable, and targeted toward adaptation and mitigation efforts in vulnerable nations.
Developed nations, particularly major emitters like the USA and China, have a moral responsibility to do more. Together, these two countries account for nearly 40% of global emissions, yet the impacts of their actions are disproportionately borne by the world’s poorest. The “loss and damage” fund, introduced at COP27, was a step toward recognizing this inequity. However, the lack of substantial progress on its operationalization at COP29 is a glaring omission.
The failure to meet the financial expectations of developing nations is more than a missed opportunity; it is a betrayal of trust. The global south has been patient, but patience is not a renewable resource. Climate change is not a future threat — it is a present crisis, and the cost of inaction will be paid in lives lost, ecosystems destroyed, and economies crippled.
As the world heads toward COP30, the message from Baku is clear:
promises are not enough. It is time for the global north to rise to the
occasion, meet its obligations, and ensure that climate finance is a tool for
justice, not exploitation.
