Countries have reached a historic agreement at the COP29 conference in Baku to establish a $300 billion annual climate finance target to assist poorer nations in combating the impacts of climate change. This new goal, set to replace the previous $100 billion annual commitment expiring in 2025, has been both hailed as a crucial step and criticized for falling short. U.N. climate chief Simon Steill called it “an insurance policy for humanity,” emphasizing its potential to drive clean energy growth, create jobs, and protect lives. However, the agreement's success depends on timely and full contributions from industrialized nations, whose historical emissions have caused the bulk of global warming.

The conference also tackled divisions between wealthier countries, constrained by domestic budget pressures, and developing nations grappling with climate-induced disasters like storms and droughts. Negotiators approved rules for a global carbon market to mobilize further funding for climate solutions such as reforestation and clean energy technologies. Despite these strides, the world remains on track for up to 3.1°C warming by century's end, far exceeding the Paris Agreement's 1.5°C goal. A broader $1.3 trillion annual funding target by 2035 was also set, aiming to secure the resources needed to mitigate catastrophic climate impacts.