World Climate Conference: Climate summit agrees on trillions for poorer countries

The World Climate Conference in Azerbaijan agreed to significantly increase climate aid for poorer countries. In total, at least 1.3 trillion US dollars (currently around 1.25 trillion euros) are expected to flow annually by 2035, of which 300 billion will primarily come from industrialized countries. The money is intended to enable developing countries to pay for more climate protection and adapt to the fatal consequences of global warming – such as more frequent droughts, storms and floods.

UN Secretary-General António Guterres demanded: “Pledges must quickly become cash.” The promises had to be fulfilled “in full and on time”.

The classic industrialized countries have so far mobilized a good $100 billion in climate aid every year. But according to an independent UN group of experts, the need for external aid is now around one trillion US dollars per year by 2030 – and even 1.3 trillion by 2035.

Anger and frustration after the decision

“We know that our decisions today alone are not enough to meet all needs,” said Foreign Minister Annalena Baerbock before the plenary session in the capital Baku. She called the $300 billion just a starting point and assured that Germany would “deliver.” The decision does not oblige Germany to make specific payments of a specific amount any more than any other country.

Against the backdrop of the upcoming change of power in the White House, there are also fears that the USA under Donald Trump – as during his first term in office – could practically say goodbye to any climate protection ambitions. Outgoing President Joe Biden called the decision in Baku a “historic” achievement and emphasized: “No matter how many try to deny or delay the clean energy revolution underway in the United States and around the world, no one can reverse it – no one.”

Shortly after the hammer blow from the Azerbaijani host, it became clear that many countries had only agreed with gnashing of their teeth, so that at least they would not part without compromise: the representative of Nigeria described the 300 billion as a “joke” and “insult”. India’s representative also protested that they absolutely could not agree because the commitments were far too small. In fact, the criticism no longer has any impact and the decision applies.

A number of countries feel ignored and complained that requests to speak had been ignored – an accusation that Baerbock also made in the final stages of the negotiations. Greenpeace Germany boss Martin Kaiser said: “After Baku, there is an embarrassingly wide gap between the promised support for the most vulnerable countries and their urgent needs.”

More donors should pay

According to the agreement, in order to raise the 1.3 trillion annually, the multilateral development banks should also issue significantly more loans or forgive the debts of poor countries. Public money and that of banks should also be used to leverage private investments on a large scale, which are also counted as climate financing.

In addition, other donor countries should be encouraged to participate. The appeal is so broad that climate activists criticize that no one is specifically responsible for this part of the global goal.

“This world climate conference does not deliver what was actually necessary – but it is in the upper range of what is possible given the current political climate,” says Christoph Bals, political director of the Germanwatch organization.

Important questions were postponed

Ultimately, a compromise was achieved because it remains partly unclear how the trillions will actually be raised – this will now be the task of the next climate conference in Brazil.

The EU, including Germany, only ventured out with concrete sums during the two-week conference at the very end. The federal government said it was completely unrealistic that trillions of euros in money were coming from budgets. She appealed to countries like China and the rich Gulf states, which have earned a lot from oil, gas and coal, to also pay up. According to a 30-year-old UN classification, these states, like India and South Korea, are still considered developing states – and therefore as recipient countries.

Climate expert Jan Kowalzig from Oxfam pointed out that the expansion would weaken the clear commitment of industrialized countries to support contained in the Paris Agreement. “These countries will know how to take advantage of that.”

Germany has so far promised around six billion euros per year for climate financing. The future federal government must decide how much it will be in the future after the new Baku decision. No concrete, predictable obligations were imposed on Germany in Baku.

Extended by more than 30 hours

At times, the World Climate Conference, which was extended by more than 30 hours, threatened to fail. Entire groups of states temporarily left the negotiations a few hours before the end and complained about the chaotic conduct of the conference. The organizers from the petrostate of Azerbaijan, 90 percent of whose export revenues come from oil and gas, praised themselves: Despite “geopolitical headwinds”, they had made every effort to be “an honest broker” for all sides.

The EU also feared until recently that resolutions from the last climate conference in Dubai could be lost in the negotiations in Baku, for example on the hard-won move away from oil, gas and coal. The specific formulation that Germany celebrated as “historic” at the time is now missing – the decision on this was postponed until next year due to a lack of consensus.

Climate activist Luisa Neubauer from Fridays for Future called the decision shameful and said: “In view of the COP (abbreviation of the World Climate Conference) and the election of Donald Trump, it would now be easy to give up the international climate fight. One could just as well given the world situation but also say: especially now.”

Expert report on climate finance