At the United Nations climate summit in Baku, Azerbaijan, a significant development took place on Friday afternoon. A new draft of a deal on cash to combat and adapt to climate change was released, pledging $250 billion by 2035 from wealthy countries to poorer ones. This amount has sparked a range of reactions among different nations.

The Battle over Climate Change Cash: $250 Billion vs. Developing Nations' Needs

Amount Pleases Some, Disappoints Others

The amount of $250 billion pleases the countries that will be making the payments. However, it fails to meet the expectations of those on the receiving end. This is a significant gap that needs to be addressed. For example, 15 years ago, the goal was set at $100 billion per year, and now it has more than doubled. But it is still less than a quarter of the amount requested by developing nations hit hardest by extreme weather.Rich nations argue that this number is about the limit of what they can do and is a realistic stretch for their democracies. But for developing countries, it is seen as insufficient. As Mohamed Adow from Power Shift Africa said, "Our expectations were low, but this is a slap in the face. No developing country will fall for this. They have angered and offended the developing world."

Nations Still Far Apart on Reaching a Deal

The proposal came from the top, the presidency of the climate talks (COP29) in Baku. COP29 lead negotiator Yalchin Rafiyev hopes to push countries to go higher than $250 billion, stating that it doesn't meet their fair and ambitious goal. But this is likely just the first of several proposals.Just like last year's initial proposal that was rejected, this plan is "empty" on mitigation efforts. As Climate Analytics CEO Bill Hare said, "We're in for a long night and maybe two nights before we actually reach agreement on this."

Anger at the 'Meagre' Figure for Climate Cash

The frustration and disappointment at the proposed $250 billion figure were palpable. Tina Stege, the Marshall Islands' climate envoy, called the drafts "shameful." She said, "It is incomprehensible that … (we) receive only sympathy and no real action from wealthy nations."Harjeet Singh of the Fossil Fuel Non-Proliferation Treaty added, "It is a disgrace that despite full awareness of the devastating climate crises afflicting developing nations and the staggering costs of climate action — amounting to trillions — developed nations have only proposed a meagre $250 billion per year."Experts estimate that developing countries need $1.3 trillion to cover damages and help them adapt and transition from fossil fuels. The proposed sum, which includes loans and lacks a commitment to grant-based finance, adds "insult to injury."Iskander Erzini Vernoit said, "The EU and the U.S. and other developed countries cannot claim to be committed to the Paris Agreement while putting forward such amounts."

Rich Countries Call for Realism

Switzerland's environment minister Albert Rösti emphasized the importance of a realistic climate finance number. He said, "I think a deal with a high number that will never be realistic, that will never be paid… will be much worse than no deal."The United States' delegation also offered a similar warning. A senior U.S. official said, "It has been a significant lift over the past decade to meet the prior, smaller goal. $250 billion will require even more ambition and extraordinary reach and will need to be supported by private finance and other sources."A lack of a bigger number from European nations and the U.S. means that "the deal is clearly moving toward the direction of China playing a more prominent role in helping other global south countries," said Li Shou.German climate envoy Jennifer Morgan said, "We think this is at least a text we can work with. Now we have a map on the way forward instead of nowhere where we don't know where we are going."Analysts believe that this proposed deal is just the beginning and there is scope for more money. Melanie Robinson said, "This can be a good down payment that will allow for further climate action in developing countries. But there is scope for this to go above $250 billion." Rob Moore added, "Whatever figure is agreed will need to be the start and not the end of climate cash promises."