Agreement reached to contribute 300 billion USD to support climate change for poorer countries

At COP29, countries agreed to an annual financial target of $300 billion to help poorer countries cope with the impacts of climate change.

Reuters reported on November 25th that, according to an agreement reached at the United Nations Climate Change Conference (COP29) in Baku (the capital of Azerbaijan), countries agreed on an annual financial target of $300 billion to help poorer countries cope with the impacts of climate change, with wealthier nations leading the spending.

The new target replaces a previous pledge by developed countries to provide $100 billion in climate finance a year to poorer nations by 2020. That target was met two years late, in 2022, and expires in 2025.

The COP29 conference reached a key agreement on spending to combat climate change. Photo: CNBC

On the new deal, UN climate chief Simon Steill hailed it as an insurance policy for humanity.

" It was a difficult journey, but we reached an agreement. This agreement will further fuel the clean energy boom and protect billions of lives. It will help all countries share the enormous benefits of bold climate action: more jobs, stronger growth, cheaper and cleaner energy for everyone. But like any insurance policy, it's only effective if the premiums are paid in full and on time, " Simon Stiell stated after the agreement was approved.

The COP29 climate conference in the Azerbaijani capital was due to end on November 22, but was extended as negotiators from nearly 200 countries struggled to reach consensus on a climate financing plan for the next decade.

The summit delved into the debate about the financial responsibility of industrialized nations, where the historical use of fossil fuels accounts for the majority of greenhouse gas emissions, to compensate other countries for the worsening damage caused by climate change. This factor leaves developing nations reeling from the costs of storms, floods, and droughts.

Countries have also agreed on rules for a global market to buy and sell carbon credits that proponents say could mobilize billions of dollars in new projects to help fight global warming, from planting forests to deploying clean energy technology.

Countries are seeking funding to meet the Paris Agreement's goal of limiting global temperature rise to 1.5 degrees Celsius. According to a United Nations report, the world is currently on track to warm by 3.1 degrees Celsius, with global greenhouse gas emissions and fossil fuel use continuing to increase.

The list of countries asked to contribute $300 billion includes industrialized countries, including the United States, European nations and Canada, and originates from a list decided during the 1992 United Nations climate talks.

European governments have asked others to join them in contributing, including China, the world's second-largest economy , and the oil-rich Gulf states. The agreement encourages developing countries to contribute but does not require them.

The deal also includes a broader target of mobilizing $1.3 trillion in annual climate finance by 2035, including funding from all public and private sources. Economists say this is in line with the amount needed to tackle global warming.

But securing the deal has been a challenge from the start, with doubts rising that President-elect Donald Trump will back the deal when he takes office.

Meanwhile, Western governments are seeing global warming slip off the list of national financial priorities amid rising geopolitical tensions, including the Russia-Ukraine conflict and escalating tensions in the Middle East, as well as rising inflation. The agreement to contribute to developing countries comes in a year that scientists predict will be the hottest on record.

Source: https://congthuong.vn/buoc-ngoat-cop29-dat-thoa-thuan-gop-300-ty-usd-de-ho-tro-bien-doi-khi-hau-cho-cac-nuoc-ngheo-hon-360720.html