As COP29 progresses, a major sticking point has emerged around climate finance, the vital funding that supports vulnerable countries facing the harshest impacts of climate change. Many nations in the Global South, which have contributed the least to global carbon emissions but face some of the most severe consequences, argue that wealthier countries should commit more resources to fund climate adaptation, resilience, and mitigation efforts.
Developing countries point to unmet pledges from previous COP summits, where wealthier nations agreed to mobilize $100 billion annually for climate action by 2020—a target still not met. This financing gap has led to frustrations, as emerging economies often lack the resources to invest in green energy infrastructure or safeguard their communities from rising sea levels, extreme weather events, and droughts. Wealthier countries, however, cite domestic challenges and shifting economic priorities, asserting that increased climate finance requires global cooperation and contributions from all high-income nations, not just a select few.
A particular point of contention is the proposed establishment of a “loss and damage” fund aimed at compensating nations already experiencing irreversible climate damage. While many developing countries champion this fund, some developed countries remain hesitant, concerned about the financial and political implications of such a commitment. As talks continue, the outcome of these negotiations at COP29 could shape the future of global climate cooperation, testing whether wealthier nations will stand by their promises or leave vulnerable countries to face climate crises on their own.
