Cash is king, and a curse, for UN climate talks

In the end, money talks.

- David Fogarty

In the final hours of the marathon COP29 talks, the agreement on a US$300 billion (S$404 billion) deal on Nov 24 was just enough to keep global climate diplomacy alive – an important signal ahead of Donald Trump's return to the White House in January 2025.

The deal was a hard-won compromise, and it rescued the talks from near collapse, but left the world's poorest nations feeling even more vulnerable to the growing ravages of climate change.

Many of the nearly 200 nations at the talks left unhappy. The least-developed nations bloc called the deal a betrayal by the world's wealthiest states.

"Powerful nations have shown no leadership, no ambition, and no regard for the lives of billions of people on the front lines of the climate crisis," the Least Developed Countries group on climate change said in a statement.

For others, COP29 showed multilateralism is still alive and well.

Climate cash has been the glue that held UN climate negotiations together for three decades.

Poorer nations have always pointed the finger at richer countries – especially the US because they are historically most to blame for the greenhouse gases heating up the planet. So, they must pay the climate bill.

Poorer nations say they are the victims and want more financial support to adapt to worsening climate impacts and to help wean them off polluting fossil fuels.

But rich nations have long dragged their feet on finance, stirring up years of deep anger and mistrust in the UN climate talks.

COP29 was a crisis point for many poorer nations – a do-or-die moment.

Climate costs for poorer countries are running into the trillions of dollars – money they do not have – and many are already deeply indebted because of existing loans and the costs of weather-related disasters.

Also, they face stronger storms, floods, droughts and rising sea levels.