As COP29 nears its conclusion in Baku, Azerbaijan, significant divisions have emerged over a proposed global climate finance deal, threatening to derail progress on critical funding for developing countries. The key objective of COP29 is to determine how much richer nations should contribute to help poorer countries mitigate and adapt to climate change. However, a new draft document unveiled just hours before the summit's final stretch has left key issues unresolved, including the amount of funding, who pays, and what qualifies as eligible contributions.

European Union climate commissioner Wopke Hoekstra expressed frustration, calling the document "unacceptable," while Panama's lead negotiator, Juan Carlos Monterrey Gómez, described the negotiations as "a tragic spectacle." Developing nations, facing the brunt of climate impacts, argue they need at least $1 trillion annually by 2030, but the draft falls short of specifying clear financial targets.

The ongoing struggle reflects deep divides between developed and developing nations. While wealthier countries push for broader definitions of climate finance, including contributions from other nations like China, poorer countries demand that funds be primarily in the form of grants. The text also omits a concrete figure for the annual climate finance target, stalling meaningful negotiations.

Meanwhile, the future of fossil fuels remains contentious. Although the draft refers to the need for a transition away from fossil fuels, concrete steps have yet to be outlined. As the summit nears its close, negotiators warn that further compromises are essential to avoid another failed climate conference.

With just two days remaining, stakeholders are under immense pressure to finalise an agreement that can meet the urgency of the climate crisis.