The conclusion of COP29 in Baku, Azerbaijan, marked a pivotal yet polarizing chapter in global climate diplomacy. Hailed by some as a landmark achievement, the conference produced a commitment by the world’s wealthiest nations to triple climate financing for developing countries, increasing annual contributions to $300 billion by 2035. While this was celebrated as a significant step forward, it falls far short of the $1.3 trillion per year that experts insist is essential to combat the escalating climate crisis effectively.

This financial commitment is designed to address two intertwined priorities: equipping vulnerable nations to cope with the devastating impacts of climate change and supporting their transition to clean energy economies. Simon Stiell, the head of the United Nations Framework Convention on Climate Change, described the agreement as “an insurance policy for humanity.”

Yet Stiell cautioned that its success depends on countries fulfilling their financial promises. “But like any insurance policy – it only works – if premiums are paid in full, and on time. Promises must be kept to protect billions of lives. It will keep the clean energy boom growing, helping all countries to share in its huge benefits: more jobs, stronger growth, cheaper and cleaner energy for all.”

Achieving this agreement required months of preparatory work and two weeks of intensive negotiations. Known formally as the New Collective Quantified Goal on Climate Finance (NCQG), the agreement demanded unanimous consensus among nearly 200 participating nations. The talks extended far beyond their planned Friday evening conclusion, pushing through early Sunday morning as negotiators scrambled to close gaps in expectations.

The agreement’s final text calls for contributions from “all public and private sources” to help bridge the $1.3 trillion funding gap. This approach seeks to mobilize not only taxpayer-funded international banks but also private investors and multinational corporations. The hope is that this diversified funding will make ambitious climate action financially feasible for the world’s most vulnerable nations.

However, the final stages of the conference were fraught with tension and criticism. COP29 President Mukhtar Babayev’s decision to gavel the agreement into acceptance before delegations could speak prompted a sharp backlash. Once the floor was opened, dissenting voices made their frustrations clear.

For some, the agreement represented a critical breakthrough. Ireland’s Environment Minister Eamon Ryan called it “a huge relief,” and European Union representative Wopke Hoekstra framed it as the start of a “new era of climate funding” that prioritizes the world’s most vulnerable populations. UN Secretary-General António Guterres shared a message of cautious optimism, praising civil society and youth activists for pushing for greater ambition and justice.

Yet, the criticism was equally resounding. Li Shuo, the China Climate Hub director at the Asia Society Policy Institute, characterized the agreement as a “flawed compromise,” emblematic of the increasingly fractured geopolitical landscape. Chandni Raina, representing India, dismissed the commitment as “a paltry sum,” while Nigerian climate official Nkiruka Maduekwe called it “an insult and a joke.” Similarly, Panama’s Juan Carlos Monterrey described the deal as falling far below the expectations of developing nations.

Reactions among the world’s poorest nations were notably ambivalent. Cedric Schuster of the Alliance of Small Island States expressed disappointment but recognized the deal as a necessary first step. Malawi’s Evans Davie Njewa voiced concerns that the agreement failed to adequately address the needs of the most vulnerable while still expressing hope that it could pave the way for future progress.

The stakes surrounding COP29’s commitments are extraordinarily high. The world is already experiencing the dire consequences of rising global temperatures, with record-breaking storms, heatwaves, and floods threatening lives and livelihoods. The agreement’s success will depend on consistent and timely financial contributions, innovative solutions for mobilizing additional funds, and a strong focus on ensuring that resources reach the most needy nations.

Next year, developing countries are expected to unveil more ambitious emissions-reduction targets in accordance with the Paris Agreement. These targets are essential to maintaining the global goal of limiting warming to 1.5 degrees Celsius above pre-industrial levels—a threshold the planet is already nearing, with current temperatures at 1.3 degrees Celsius above that baseline.

As the world looks ahead to 2035, the legacy of COP29 will rest on whether these commitments materialize into meaningful action. If nations fulfill their promises and reach the $300 billion target, Baku could become a symbol of progress. But if the funding falls short and ambition wanes, the conference may be seen as another missed opportunity in the fight against climate change. The future remains uncertain for now, and the pressure to act has never been greater.