Overview

• Negotiations at COP29 in Baku focus on establishing a new climate finance target to aid developing nations in combating climate change.
• Developed countries previously pledged $100 billion annually by 2020, a target only met in 2022, highlighting the need for a more substantial goal.
• Discussions are complicated by disagreements on the size of the new target, the role of loans versus grants, and which countries should contribute.
• The recent U.S. election, with Donald Trump as president-elect, adds uncertainty, as his previous administration withdrew from the Paris Agreement.
• Global economic challenges, such as high inflation and fragile growth, further complicate the task of reaching a consensus on climate finance.