Developed countries commit $300 billion to Green energy transition

At the UN COP29 climate summit in Baku, developed countries agreed to allocate $300 billion annually to support developing nations in tackling climate change and transitioning to green energy by 2035, Kazinform News Agency correspondent reports.

Initially, the amount was set at $250 billion, but after intense diplomatic negotiations led by the COP29 presidency, it was raised to $300 billion. Although the new amount is three times higher than the 2009 target, it remains below the $1.3 trillion requested by developing countries, a figure expected to grow by 2035.

The agreement envisions the majority of funding coming from private investments and alternative measures, such as proposed fossil fuel taxes, which are currently under consideration.

The US and the EU intend to seek contributions from other major players still classified as developing economies, including China and the Gulf states.

The new funding aims to support developing countries in transitioning to clean energy, moving away from fossil fuels, and building infrastructure for large-scale renewable technologies like wind and solar power.

UN Climate Change Executive Secretary Simon Stiell described the new finance goal agreed at COP29 as “an insurance policy for humanity.”

“This deal will keep the clean energy boom growing and protect billions of lives. It will help all countries to share in the huge benefits of bold climate action: more jobs, stronger growth, cheaper and cleaner energy for all. But like any insurance policy – it only works – if the premiums are paid in full, and on time,” says Stiell.

The Paris Agreement established a framework for nations to regularly increase their climate action goals to limit global warming to 1.5°C above pre-industrial levels. However, the world has already reached 1.3°C of warming, and carbon emissions continue to rise. 2024 is on track to become the hottest year on record.