New Collective Quantified Goal on climate finance (COP29)

The New Collective Quantified Goal on climate finance, negotiated at COP29 in Baku in November 2024, sets developed countries' commitment to mobilize climate finance for developing countries at 300 billion dollars a year by 2035, replacing the old 100 billion dollar annual target set in 2009 and long regarded as far short of the scale of adaptation and mitigation needs. The agreement also sets a broader, non-binding goal of mobilizing 1.3 trillion dollars a year from all sources combined, public and private, which explicitly acknowledges that public funding alone cannot close the gap experts have estimated. For the insurance and reinsurance sector, this goal indirectly determines whether existing mechanisms, such as the loss and damage fund or regional parametric facilities, will have enough resources to compensate the most vulnerable countries quickly after a major climate event. The negotiation was marked by sharp tension between developed and developing countries over the binding target's perceived insufficiency, with several small island state delegations briefly walking out of the closing session in protest.