COP29 week one ends in deadlock as divisions stall climate action progress

Baku (Azerbaijan): The first week of the COP29 summit concluded in Baku without significant breakthroughs, as deep divisions between developed and developing nations stalled progress on key issues like climate finance, trade measures, and equitable responsibility for climate action.

India, representing the G-77/China and BASIC blocs, demanded accountability from wealthier countries on unmet financial commitments.

The G-77/China bloc reiterated the call for $1.3 trillion annually in climate finance, with an emphasis on grants and concessional funding to avoid burdening vulnerable economies already grappling with the impacts of climate change.  

“Loans make up nearly 70 per cent of climate finance provided so far. This is unacceptable and places undue pressure on developing economies,” an Indian negotiator had asserted, urging developed nations to move away from debt-inducing mechanisms.   UN Executive Secretary Simon Stiell added to the urgency, urging G20 countries to take bolder action, warning that without it, no economy in the grouping would be spared from climate-driven economic losses.

However, his call for solidarity failed to resolve the deadlock.

Cosima Castle, of E3G’s climate diplomacy team, acknowledged the challenges posed by geopolitical tensions but underscored the potential of the upcoming G20 Leaders’ Summit in Rio de Janeiro.

E3G is an engineering and environmental consulting firm.

“We’re seeing strains everywhere, from the Middle East to Africa to Ukraine, yet there’s collective resolve among many nations to work toward a deal,” she said.

Castle pointed out that the G20 countries, responsible for 80 per cent of global emissions and 85 per cent of the world economy, hold the key to unlocking ambitious climate agreements.

The contentious issue of the European Union’s Carbon Border Adjustment Mechanism (CBAM) also fuelled sharp exchanges.

India and other developing nations criticised the measure for disproportionately penalising their economies, calling it a violation of equity principles and the United Nations Framework Convention on Climate Change (UNFCCC). “CBAM shifts the responsibility of climate action onto nations with minimal historical emissions, undermining industrial growth in the developing world,” warned a negotiator from Bolivia, echoing India’s concerns.   Technology transfer emerged as another unresolved issue.

Developing nations demanded a robust technology implementation programme supported by dedicated financial backing.

“Without equitable access to climate technologies, the promises of the Paris Agreement will remain unfulfilled,” an Indian negotiator stated.   India also opposed any attempts to impose external regulations on its climate targets, emphasising that mitigation efforts should align with Nationally Determined Contributions (NDCs) and national sovereignty.

The BASIC bloc criticised developed nations for attempting to dilute their commitments under the Paris Agreement by shifting additional obligations onto emerging economies.   The BASIC countries include Brazil, South Africa, India, and China.

The Alliance of Small Island States (AOSIS) and the Arab Group joined forces with India, highlighting the disproportionate impact of climate change on vulnerable populations and demanding scaled-up financial and technological support.   The negotiations in Baku have also highlighted the urgent need for a comprehensive climate finance package that addresses both mitigation and adaptation.

"The costs of inaction are far greater than the costs of action," Castle warned, adding that countries must come together not only for climate action but also for long-term economic stability.

South Africa, which will assume the G20 presidency in 2025, is expected to play a crucial role in bridging the gap between developed and developing countries.

Gillian Hamilton, a civil society leader from South Africa, emphasised the country’s commitment to debt relief and reforms in multilateral financial systems.

“South Africa has been closely working with the African Union to reflect the priorities of the Global South, focusing on equity and solidarity,” she said, adding that the country’s leadership would build on themes introduced by Brazil and India.

The lack of progress on key fronts, including the long-standing USD 100 billion annual climate finance pledge, left developing nations increasingly frustrated.

As negotiators prepare for the second week, the stalemate casts uncertainty over whether COP29 will deliver actionable outcomes.

With COP30 in Brazil next year, the outcomes in Baku are likely to set the tone for the global climate agenda in the months to come.