The 29th annual United Nations climate conference, COP29, held in Baku, Azerbaijan, is set to focus on negotiating financial commitments from wealthy nations like Canada to support developing countries in combating climate change. Historically high-emitting nations, including Canada, the U.S., Japan, and Western European countries, bear a disproportionate responsibility for climate change, having contributed about half of global emissions since the mid-19th century despite constituting only 12% of the global population. On a per-capita basis, Canada is among the most polluting countries.
In 2009, wealthy nations pledged to mobilize $100 billion annually by 2020 for climate initiatives in developing countries. This funding, derived from public and private sources, aims to support renewable energy projects, conservation efforts, and adaptation measures. However, the goal was met only in 2022, eroding trust between the Global North and South. Many developing nations face challenges in accessing these funds, highlighting the need for a new, equitable climate finance goal to be finalized by 2025.
Canada’s contributions to date include $5.3 billion pledged over five years starting in 2021, with funds allocated for projects like solar plants in Samoa and electric buses in Jamaica. However, critics, including the Canadian Coalition on Climate Change and Development (C4D), argue that Canada should triple its commitment to $15.9 billion for the next five-year period ending in 2031. Globally, experts estimate that developing nations may require upwards of $1 trillion annually to meet climate goals, with the UN suggesting $1.46 trillion by 2030—equivalent to the combined military budgets of wealthy nations.
Negotiations at COP29 are expected to address contentious issues, including the expansion of the list of contributing countries. Wealthy nations, including Canada, propose that countries like China, Saudi Arabia, and Russia, whose emissions have surged with economic growth, also contribute. However, critics caution that this could be used by some to evade existing responsibilities. Canada’s Minister of Environment and Climate Change, Steven Guilbeault, emphasized the importance of Canada’s role as a mediator to bridge divides and ensure constructive discussions.
Another critical issue is the nature of climate finance. Currently, a significant portion of funding is provided as loans, which exacerbate the debt burdens of developing countries. In 2022, small island nations and least-developed countries spent $59 billion on debt repayments, compared to $28 billion received in climate finance, half of which was in loans. Canada has been a significant provider of loans but aims to achieve a 50-50 balance between grants and loans, moving closer to the 60-40 split advocated by developing countries and climate coalitions.
Canada has played a leadership role in past climate finance discussions, helping to meet the $100 billion goal and proposing eligibility criteria to expand the contributor base. Moving forward, Canada is urged to ensure fair and timely adoption of a new climate finance target and to push for more funding in the form of grants rather than loans. Observers view these negotiations as high-stakes, with outcomes pivotal for global efforts to limit warming to 1.5°C and ensure equitable climate action.
