The European Union, the United States, and other wealthy nations have agreed to contribute $300 billion a year to the climate fund by 2035. British news agency Reuters reported on Saturday (November 23) about unnamed sources.
The conference was supposed to end on Friday, but the negotiations between the 200 countries were delayed until Saturday. These lengthy discussions were held to finalize the global climate fund plan for the next decade based on consensus.
A draft deal on a $250 billion fund was proposed at the COP 29 summit, chaired by Azerbaijan, on Friday. However, developing countries reject this amount as 'disgracefully low'.
Five sources confirmed the rich nations had agreed to the new proposal. The names of the European Union, the United States, Australia and the United Kingdom have come up. However, it is not yet certain whether this proposal will reach the developing countries or get their support.
The current proposal would replace a $100 billion funding commitment a year ending in 2025. But not only the total amount of money, but also who will contribute to the fund and how much will be given as grant is being discussed.
Several rich countries, including the European Union, have said that other economically powerful countries such as China and the oil-rich Gulf countries should also be included in the funding.
Meanwhile, developing countries say weak funding will hamper their ability to set ambitious targets for reducing carbon emissions. Sierra Leone's environment minister, Ziwah Abdulai, said the proposed $250 billion target was nothing when inflation was factored in.
He further said that after three years of negotiations, the result is zero. He said that he will raise the demands of developing countries to the COP 29 president.
A group of developing countries has threatened to withdraw from the talks unless a final decision is taken on the proposal. According to the Sierra Leone minister, they may also consider pulling out of the talks.
Developing countries have been demanding increased funding to deal with the growing pressure of climate change damage. If rich nations do not follow through on their commitments through this resolution, the divide could deepen at future climate conferences.
