Participants of COP29 have committed to providing $300 billion annually to assist poorer and more vulnerable nations in adapting to climate change and transitioning their economies to "green" energy by 2035.
Developing countries, from India to Cuba, which demanded assistance exceeding one trillion dollars, immediately condemned the agreement as "offensive".
The key innovation of the final agreement is that the West intends to hold other major players accountable, who are still classified as developing economies, including China and Gulf states.
While developed countries are indeed called to "take the lead" in mobilizing the $300 billion, the text explicitly states that any contributions from multilateral financial organizations, such as the New Development Bank of BRICS or the Asian Infrastructure Investment Bank, will be considered.
Chaotic Conclusion
In the final days of the summit, the likelihood of financial negotiations falling through seemed quite real.
On Friday (November 22), developing countries dismissed the proposal from wealthy industrialized nations, including the EU, the US, and Japan, to allocate $250 billion annually starting in 2035 as "a joke".
Later, according to civil society observers, the revised proposal was increased to $300 billion.
The group of "least developed countries" promptly stated that this was unacceptable, after which the Alliance of Small Island States (AOSIS) joined them and left the negotiation hall.
The G77+China group, which includes most countries from Latin America, Africa, and Asia, indicated that they would agree to a figure of $500 billion. However, this seemed beyond the reach of wealthy Western nations.
US Climate Envoy John Podesta faced criticism. Climate activists shouted "shame", accusing the Biden administration of failing to "pay its dues".
"Of course, it won't be better under Trump, but what they are doing under Biden is truly shameful", said Victor Menotti, director of the International Forum on Globalization, after Podesta was escorted out through a side door by security personnel.
"This is not the climate protection and environmental justice agenda for which he was elected", Menotti added.
Following this, there was a prolonged period of relative quiet as negotiations continued behind closed doors.
"We have all worked very hard over the last two weeks, and I know that none of us wants to leave Baku without a good outcome", said COP29 Chair Mukhtar Babayev at the plenary session, which began at 8:00 PM local time on Saturday.
"Time is not on our side", he told participants of the two-week summit. "I urge you to intensify the dialogue".
With the final gavel strike at 2:38 AM local time, the summit concluded.
In addition to the crucial funding document, participants also agreed on the rules for establishing a global carbon market supported by the UN. This market will facilitate carbon credit trading, encouraging countries to reduce emissions and invest in climate protection projects.