### Wealthier Nations Propose $250 Billion Climate Finance, Developing Countries Demand More

Organizers of the United Nations climate summit have unveiled a draft agreement proposing $250 billion annually in climate finance for developing nations by 2035. The figure, aimed at aiding poorer countries in transitioning to greener economies and coping with climate change impacts, is significantly less than the over $1 trillion that these nations sought.

The draft, released at COP29 in Baku, Azerbaijan, has sparked controversy and disappointment among developing countries. "It's ridiculous. With this number, they are spitting in our faces," remarked Juan Carlos Monterrey Gómez, Panama's climate envoy. Kenyan climate envoy Ali Mohamed echoed the sentiment, indicating that the proposed amount was not taken seriously.

The finance debate dominated the discussions, which were initially set to conclude on Friday but are expected to extend due to the wide gap between the parties' positions. The proposed $250 billion is a follow-up to a 2009 agreement where wealthier nations pledged $100 billion by 2020—a goal they met only in 2022. However, the mounting climate challenges and escalating costs have rendered the new target unsatisfactory for many poorer nations, who are calling for $500 billion to $1.3 trillion per year, starting by 2030 rather than 2035.

Critics of the draft are also concerned about the ambiguity surrounding the sources of the proposed funds. It is unclear whether the $250 billion will solely come from public finance and private investments or if it encompasses all types of private investment. The possibility of relying heavily on private capital has not been well received among developing countries who seek clear commitments from public funds.

Despite the discontent, a European negotiator indicated that the $250 billion figure is higher than some rich nations anticipated and would require them to reassess their contributions. Meanwhile, senior officials in the Biden administration argue that although the target demands greater ambition, it aligns with future climate-friendly government goals and emphasizes the importance of mobilizing both bilateral actions and multilateral development banks.

Adding another layer of contention, the draft agreement leaves it up to increasingly wealthy developing nations like China, Singapore, and Gulf states to voluntarily contribute additional funds. This provision has done little to shift China’s stance, as it continues to emphasize its past contributions of around $25 billion since 2016.

Environmental advocates believe reaching higher finance targets is feasible. Changes in lending practices at multilateral development banks are expected to unlock additional financing, and modest increases in direct country-to-country finance could also help meet or exceed the proposed goal.