Sat Nov 23 22:50:00 UTC 2024: ## COP29 Deadlocked: Climate Finance Dispute Delays Conclusion

**Baku, Azerbaijan –** The 29th Conference of the Parties (COP29) on climate change, concluded on November 22nd, but negotiations remain stalled due to disagreements over climate financing. Developing nations, including China and India, are demanding at least $1 trillion annually from 2025 to 2035 from developed countries to help them meet emission reduction targets. This demand, representing the New Collective Quantified Goal (NCQG) on climate finance, far exceeds the $250-300 billion proposed by developed nations, primarily the European Union.

The disagreement centers on the quantum of funding, the forms it should take (grants vs. loans), and the responsibility of developed nations based on historical emissions and per capita GDP. Developing countries emphasize that funds are needed not only for meeting Nationally Determined Contributions (NDCs) but also to adapt to existing climate threats and compensate for past damages. While developed nations acknowledge the need to “take the lead,” they advocate a collaborative approach involving both public and private funding, falling short of the developing world’s demands.

Adding to the complexity, China’s request to address “climate-change related unilateral restrictive trade measures,” specifically the EU’s Carbon Border Adjustment Mechanism (CBAM), further strained negotiations. The CBAM, set to fully implement in 2026, imposes taxes on carbon-intensive imports, raising concerns among developing nations.

Despite the deadlock on finance, COP29 achieved some progress, approving UN supervision of a global carbon market under Article 6 of the Paris Agreement. This market will allow countries to trade carbon credits, potentially facilitating climate finance, with India already exploring bilateral carbon trading agreements.

However, the overall outcome of COP29 remains clouded by the unresolved climate finance dispute, raising concerns about the ability of the international community to effectively address the urgent challenges of climate change. Further negotiations are expected to continue beyond the official deadline.

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