November 24, 2024
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Economy

The Climate Summit approved $300 billion in financing for developing countries

Countries participating in the COP-29 UN climate summit have agreed to a new collective agreement on climate finance in the amount of $300 billion per year, an amount they call grossly insufficient.”, — write: www.epravda.com.ua

Countries participating in the COP-29 UN climate summit have agreed to a new collective agreement on climate finance in the amount of $300 billion per year, an amount they call grossly insufficient.

Source: CNN

Details: The publication noted that at the COP29 summit in Baku, Azerbaijan, on Saturday, rich countries pledged to provide poor countries with $300 billion annually until 2035 to help them cope with the increasingly catastrophic effects of the climate crisis, a figure that many countries that are developing, were criticized as extremely insufficient.

The agreement was reached after more than two weeks of difficult negotiations and disputes.

CNN reports that there were fears the talks would break down as groups representing vulnerable small island states and least developed countries walked out on Saturday.

But at 2:40 a.m. local time on Sunday, more than 30 hours after the deadline, a deal was reached between nearly 200 countries.

$300 billion will go to vulnerable, poorer countries to help them cope with increasingly devastating extreme weather events and transition their economies to clean energy.

The pledged sum, however, falls short of the $1.3 trillion that economists estimate is needed to help developing countries cope with the climate crisis, prompting a furious backlash from many developing countries.

The COP29 summit paid considerable attention to finance – a vital climate issue, but one of the most acute in political terms.

Rich countries, which are overwhelmingly responsible for historic climate change, agreed in 2009 to provide developing countries with $100 billion a year by 2020. This commitment, which was already considered extremely insufficient, was fulfilled only in 2022, two years behind schedule.

The challenge in Baku was to reach a new figure.

The new deal, agreed on Saturday, requires rich countries, including the United States and European powers, to provide $300 billion each year until 2035, made up of public and private financing.

While the deal also has broader ambitions to increase the amount to $1.3 trillion, developing countries would like rich countries to shoulder a much larger share of that amount, and for the money to come mostly in the form of grants rather than loans , which they fear will plunge them further into debt.

The “Big Seven” called for an allocation of up to 500 billion dollars for developing countries. But richer countries dismissed the higher figures as unrealistic in the current economic circumstances.

Ukrainian truth

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