Climate finance talks stall ahead of upcoming UN summit

International negotiations regarding financial aid for developing countries to combat climate change ended this week without reaching an agreement, just two months before Azerbaijan is set to host the United Nations climate summit.

The Azerbaijani chair of the COP29 summit expressed concern after the conclusion of the four-day talks on Thursday, while NGOs criticised wealthier nations for allegedly obstructing efforts to secure a deal.

The talks scheduled for November 11-22 in Baku aim to establish a global agreement on the amount wealthy nations should contribute to assist developing countries in transitioning to renewable energy and dealing with the impacts of global warming.

COP29 president Mukhtar Babayev, Azerbaijan's Minister of Ecology and Natural Resources, emphasised the need for determination and leadership from all parties to bridge the existing gaps in this crucial final phase. He stated that everyone now needs to take responsibility for finding an agreement, warning that adhering strictly to set positions and failing to make progress toward mutual understanding would result in too much ground needing to be covered at COP29.

Wealthy nations are under increasing pressure to commit to new financing targets that significantly exceed the $100 billion per year they pledged to provide until 2025. Developing countries argue that $1 trillion annually is required.

Under a significant 1992 UN climate agreement, industrialized nations acknowledged their historical responsibility for greenhouse gas emissions and established the foundation for providing financial assistance to the developing world. However, the United States and European Union nations are now advocating for an expanded group of contributors, including oil-rich Gulf states and China, which is currently the world's second-largest economy and the leading emitter of greenhouse gases.

Gulf states and China have rejected the call to contribute.

In late August, the UN released a draft document outlining seven potential options for a financial agreement, highlighting the conflicting positions among nations.

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