Berliner Boersenzeitung - New proposal awaited in Baku on climate finance deal

The two-week conference at a sports stadium in the Caspian Sea city of Baku is almost certain to go into overtime, with key details for a deal yet to be released, let alone agreed.

The main priority at COP29 in Baku is agreeing a new target to replace the $100 billion a year that rich nations provide poorer ones to reduce emissions and adapt to disasters.

Developing countries plus China, an influential negotiating bloc, are pushing for $1.3 trillion by 2030 and want at least $500 billion of that from developed nations.

COP29's Azerbaijani presidency said in a statement it was "encouraged on Thursday by the level of flexibility displayed by the parties" and would release new texts Friday.

The new draft is expected to offer financial figures after an earlier document released early Thursday said that developing countries need at least "USD [X] trillion" per year but omitted a concrete number.

"This is the reason we are here," said Mohamed, who is also Kenya's climate envoy.

UN Secretary-General Antonio Guterres, who flew back to Baku after attending COP29's opening last week, warned: "Failure is not an option."

- Language on fossil fuels -

China, the world's largest emitter, said the text was "not satisfactory" but urged "all parties to meet one another halfway".

Other major sticking points -- including who contributes climate finance and how the money is raised and delivered -- were left unresolved in the draft.

Apart from splits over money, many nations said the text failed to reflect any urgency on phasing out coal, oil and gas -- the main drivers of global warming.

"We are, frankly, deeply concerned at this stage about what we view as a glaring imbalance in the text thus far," US climate envoy John Podesta said.

The text's sections on cutting planet-warming emissions were "absolutely unacceptable", he added.

Last year's COP28 summit in Dubai, after long negotiations, led to a landmark call on the world to transition away from fossil fuels.

A Saudi official speaking on behalf of the Arab Group aimed to draw a line in Baku, saying the bloc would "not accept any text that targets any specific sectors, including fossil fuel".

Australian climate minister Chris Bowen said countries had "hidden, pared back or minimised" references to fossil fuels, calling it "a big step back".

As the clock ticks down, frustration in Baku boiled over at the COP29 hosts.

"Could I please -- could I please -- urge you to step up the leadership?" EU climate commissioner Wopke Hoekstra said in pointed remarks.

"I'm not going to sugarcoat it. I'm really sorry to say, but the text we now have in front of us -- in our view -- is imbalanced, unworkable and unacceptable."

COP29 lead negotiator Yalchin Rafiyev appealed for "compromise and solidarity".

"This is a moment where you need to put all your cards on the table," he told delegates.

- Not over yet -

Ireland's climate minister Eamon Ryan insisted negotiations were "advancing" behind the scenes and the final text will be "radically different" from the draft.

"I think there is room for further agreement," he told AFP.

They also want to broaden the list of donors -- notably to include China, which provides its own aid but has no obligations as it remains classified as a developing country.

Presently, most climate finance is issued as loans, meaning developing nations incur more debt as they build resilience against global warming.

Panama's negotiator Juan Carlos Monterrey Gomez said that developing countries' envoys might find it easier to reach outer space than to hear concrete finance figures from wealthy nations.

"Sadly, Mars is years away and we only have hours to get to this decision," he said.

(O.Joost--BBZ)