In Baku, Azerbaijan, a crucial battle is underway in the annual United Nations climate talks known as COP29. Just as a simple lever can move heavy objects, rich nations are hoping that financial leverage can help them provide the necessary funds for poorer nations to combat climate change. This involves a complex package of grants, loans, and private investment. However, poorer nations worry about getting the short end of the lever, receiving little money and accruing significant debt.

‘Cut the theatrics.’ Climate negotiators urged to get down to business at COP29 in Baku

In these negotiations, rich potential donor nations have been reluctant to offer a starting figure for negotiation. COP29 lead negotiator Yalchin Rafiyev told The Associated Press that there are interlinkages between the elements and having one agreed could unlock the others. It's like the first domino falling, leading to progress.For example, India's junior environment minister Kirti Vardhan Singh emphasized that the global south is bearing a huge financial burden, severely limiting their capacity to meet developmental needs.Experts put the needed climate finance at $1 trillion, while developing nations claim $1.3 trillion. So far, rich nations haven't offered a specific number for the core money. The European Union is expected to do so, likely in the $200 to $300 billion a year range, which might be four times the original $100 billion.But there's a big gap between $200 billion and $1.3 trillion. Avinash Persaud, climate adviser for the Inter-American Development Bank, said the power of leverage can bridge this. When a country gives $1 to a multilateral development bank, it can lead to $16 in spending for transitioning away from dirty energy. For adapting to climate change, it's about $6 for every dollar.However, for compensating already damaged poor nations like Caribbean ones, leverage doesn't work as there's no investment or loans. That's where straight-out grants can help.Ireland's environment minister Eamon Ryan stressed that it would be unforgivable for developed countries to walk away without a firm commitment. "We have to make an agreement here and provide the finance, particularly for developing countries," he said.If climate finance mostly comes in the form of loans, it means more debt for already debt-laden nations. Michai Robertson, climate finance negotiator for the Alliance of Small Island States, argued that most of the sought-after $1.3 trillion should be in grants and low-interest, long-term loans. Only about $400 billion should be in leveraged loans.United Nations Environment Programme Director Inger Andersen said leverage is a critical part but so are grants and debt relief. Gambia's environment minister Rohey John said the absence of a financial commitment shows a lack of interest in the development of others.Ministers giving national statements also expressed strong views. St. Kitts and Nevis Climate Minister Joyelle Clarke said, "Our children, our elderly, our women, our girls, our Indigenous people, our youth deserve better. Let us be seized by a desire for better." Cuban environment minister Armando Rodriguez Batista urged countries not to "favor death over life."The G20's mention of strong climate finance and the replenishment of the International Development Association gives a boost to negotiators. But analysts and activists are worried as the G20 statement didn't repeat the call for a fossil fuel transition, which was a hard-fought concession last year. Veteran climate talks analyst Alden Meyer said this is due to pressure from Russia and Saudi Arabia.The Associated Press' climate and environmental coverage is supported by multiple private foundations, and AP is responsible for all content. Find AP's standards at AP.org.