As COP29 wound up in the early hours of Sunday, India’s fierce objection to the climate finance deal that was the summit’s main outcome showed its resolve to act as a voice for the Global South in wanting more international support to step up climate action, diplomats and policy analysts said.
In a statement described as “bold” and “historic”, India rejected the rushed approval of the new finance goal for 2026-2035, arguing that due process had not been followed, and sought “much higher ambition” from rich nations.
“The Global South is being pushed to transit to no-carbon pathways even at the cost of our growth… other measures are being imposed by developed country parties to make this transition really not easy,” Chandni Raina, an advisor with India’s Department of Economic Affairs, said in an impassioned speech. “This amount is a paltry sum and not something that will enable conducive climate action,” she said of the hard-fought deal on climate finance after it was gavelled through.
Rich nations on Saturday agreed to channel at least $300 billion a year by 2035 for developing countries to ramp up climate action, after bad-tempered talks in which the most vulnerable pushed for a bigger slice of the pie.
Fractious COP29 lands $300bn climate finance goal, dashing hopes of the poorest
The new goal replaces the existing annual target of $100 billion, which was met two years late in 2022 and is widely seen as insufficient to meet rocketing needs among poorer nations for transitioning to clean energy and adapting to extreme weather and rising seas.
In Baku, poorer countries had pushed for that amount to be raised to at least $1 trillion, with most of the money provided as grants.
The far lower final offer of $300 billion, whose provision will be led by rich governments, is part of a wider effort agreed at COP29 to scale up finance to at least $1.3 trillion per year by 2035 “from all public and private sources”.
“We are disappointed in the outcome which clearly brings out the unwillingness of the developed country parties to fulfill their responsibilities. We cannot accept it,” Raina told the final plenary, drawing loud cheers. Delegates from Cuba, Nigeria, Malawi and Bolivia also outlined their disappointment and frustration after the decision had been approved.
Champion for the Global South
“It is important when India speaks up. It reflects our views – those of the least developed countries (LDCs),” said Hana Hamadalla of Sudan, who was part of a delegation of least-developed countries that on Saturday walked out of consultations in protest at an earlier version of the deal.
She told Climate Home she found Raina’s emphasis on the $300bn figure not being enough for poor nations to fight climate change “to the point” and reflective of Sudan’s views.
“India has been and wants to continue to be a champion for other Global South developing countries,” said Sandeep Pai, director for research and strategy at Swaniti Global, a social enterprise that works on climate action and policy.
In Baku, wealthy nations first put on the table an annual sum of $250 billion by 2035, which was rejected by climate campaigners and poor countries. They then increased their offer to $300 billion by that date. A high-level group of economists has recommended that level should be reached five years earlier and then raised to $390 billion a year by 2035.
As climate-vulnerable countries, we know what kind of finance we need
India, for its part, had called on rich nations to pledge $600 billion a year in grants. The final deal in Baku – half of that – did not specify how much of the core public finance goal should come as grants and cheap loans.
Pai described the COP29 finance deal as “grim”. “At this point everyone knows money is not coming unless it is for something that would make sense commercially,” he told Climate Home.
With Donald Trump’s election as US president, the money will likely also be less than promised, Pai added, especially if the country withdraws from the Paris climate agreement as Trump has threatened to do.
That could leave a finance hole that European nations, Japan and other wealthy governments may be unwilling to fill, boosting pressure on richer, big-emitting developing countries to dig deeper.
Voluntary contributions
Industrialised countries before and during COP pushed hard to expand the donor base for climate finance to include richer developing countries such as China and oil-rich Gulf states, a proposal fiercely rejected by India, the world’s most populous nation.
“Indian negotiators are articulating a long-held stand, so they (wealthy nations) don’t start counting India as a developed nation, expected to pay,” said Pai.
Analysts said there had been no formal ask for India to join the contributor base for the new goal. But New Delhi has pushed back strongly against changes that could shift the parameters of the global climate agreements governing the negotiations, particularly those that could blur the line on who shoulders the greatest responsibility to act on climate change.
The final deal only “encourages” developing countries to make contributions to the new finance goal “on a voluntary basis”.
But on Sunday, within hours of COP29 finally reaching a deal, Jennifer Morgan, Germany’s special envoy for climate, posted a statement on X saying: “We stand to give more, if those who have grown significantly since 1992 – in wealth and emissions – are ready to step up as well. The target we have put forward demonstrates our seriousness.”
While China, the United States, India and the EU currently make up the world’s largest emitters, India ranks lowest in terms of per-capita emissions, according to World Research Institute analysis. The United States and Russia have the highest per-capita emissions.
India’s Raina told the final CO29 plenary that developing countries are now being seen as contributors to finance climate action, and India was opposed to it.
Less finance, weaker NDCs
In the negotiating rooms in Baku, India led the conversation on the NCQG from the Global South, and its opposition to the agreed goal could signal that developing countries may submit weak national climate plans (NDCs) next year, analysts warned.
Sanjay Vashist, director of Climate Action Network South Asia, said developing countries such as India may not slow down their efforts to adapt to climate shifts, but their actions and ambitions will not be reflected in the NDC they submit.
“We are answerable to domestic monitoring systems not international. Now you are not under obligation,” he said, referring to the shortfall in finance.
India’s strongly worded objection at COP29 was also regarded as significant because it sends a strong signal “that a deal cannot be done” without countries being heard, said Srestha Banerjee, director of just transition at the International Forum for Environment, Sustainability and Technology (iFOREST), a research and policy think-tank.
The critical voices, not just of India but also other countries including Colombia’s environment minister, “should be a wake-up call for rethinking the UNFCCC [process] and how it can truly deliver cooperative action”, Banerjee said.
(Reporting by Roli Srivastava; editing by Megan Rowling)
This article was produced as part of the COP29 Cross-Border Energy Transition Reporting Fellowship, a programme organised by Clean Energy Wire and the Stanley Center for Peace and Security.
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India fires warning shot with rejection of finance deal at COP29
Climate Change
London talks raise hopes for green shipping deal
A relatively ambitious deal to reduce the shipping industry’s 3% of global emissions now looks more likely after four days of closed-door talks in London, observers say.
The International Maritime Organization (IMO), which oversees the negotiations, said there had been “constructive discussions” and “genuine willingness within the group to make concrete further progress”.
Em Fenton, senior director at the NGO Opportunity Green who attended the talks last week, said they “demonstrated a strong spirit of solidarity in the face of blatant attempts to undermine the credibility, ambition and equity of a hard-fought multilateral agreement”.
After several years of debate, governments provisionally agreed in April 2025 on a “Net-Zero Framework” (NZF) – a series of emissions reduction targets for shipowners aimed at incentivising them to use cleaner fuels, backed up with financial rewards for meeting the targets and fees for missing them.
But in October 2025, after a high-profile intervention by US President Donald Trump and threats of US sanctions and visa restrictions, the US convinced a majority of voting nations to postpone the adoption of the NZF for a year.
UCL analysis found that, of those who expressed a view at last week’s talks, 38 were in favour of an NZF-style solution while only 17 were against. Those opposed are “consistently composed of strongly fossil fuel-aligned governments”.
An observer of the talks, who did not want to be named, said the countries opposed include the US, Russia, India, Thailand, Argentina, Ecuador and Uruguay, as well as eight oil-rich Gulf nations and shipowner-reliant Liberia and Panama. Governments that support an NZF-style deal include China, Brazil, Mexico, Türkiye, Canada, Australia, Chile, nine African nations, most European countries and small islands.
A new framework to tackle shipping emissions could be adopted if two-thirds of countries that are present and signed up to a regulation called Marpol Annex VI – endorsed by just over 100 states – vote in favour of it, as they did in April 2025.
UCL’s analysis said it was “reassuring” that governments which had taken strong positions in the media against the NZF were being more compromising in the negotiations.
Tweaks are probable
While there is majority support for the NZF, UCL said adopting it would be difficult politically. “The process from here could therefore be as much about producing what appears to be a new package, but one that broadly ends up with similar outcomes in relation to objectives,” UCL argued.
But tweaking the NZF, which resulted from years of negotiations, comes with risks, it warned. For example, changes could reduce the new system’s planned support for low-income countries, turning them against it. Fenton said compromising should not mean “abandoning the principle of justice in the maritime transition”.
UCL said the speed at which shipowners must reduce their ships’ emissions or face fees is likely to be reduced in the short-term but raised in the long-term to meet a goal of net zero emissions by mid-century.
This was a compromise put forward by NZF-supporter Brazil. However, an analysis by the the Institute of Marine Engineering, Science and Technology (IMarEST) has found that this change would lead to more overall emissions than the original NZF trajectory.
UCL has warned it could incentivise liquefied natural gas as a shipping fuel over greener options, which include hydrogen-based methanol and ammonia.
Analysis by UCL and the Rocky Mountain Institute suggests that, while a slower start to the NZF would reduce transport costs in the short term, it would increase them later due to the costs involved in switching the industry over from more polluting fuel to cleaner fuel.
NZF won’t meet emissions goals
IMarEst’s analysis finds that even in its current form – the most ambitious deal on the table – the NZF will not be sufficient for shipping to meet its emissions reduction goals.
It says that only a Pacific proposal to place a levy on ships’ total emissions – rather than just those above a certain level – would meet the industry’s targets to reduce emissions 20% between 2008 and 2030, 70% by 2040 and then reach net zero “by or around, i.e. close to 2050”. This is highly unlikely to be adopted.
Additional talks will be held from November 23-27 and from November 30-December 3 before a potentially final round of official negotiations begins on December 4.
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Climate Change
At regional summit, Pacific islands ask for COP31 support for clean energy and finance
At a key leaders’ summit in Palau, Pacific island nations burdened by worsening climate change impacts and costly fossil fuel imports called for November’s COP31 climate summit to deliver finance to help the region transition to renewable energy and build more resilient communities.
Heads of government from the 18-member Pacific Islands Forum (PIF) – which includes COP31 co-president Australia – met in Palau’s capital Koror for a week-long summit, where they demanded access to climate finance, ocean action and a regional boost for renewables at COP31.
Palau’s president Surangel Whipps Jr. said during a plenary session that the Pacific must focus on delivering climate and ocean commitments. “It will require greater regional leadership, stronger regional coordination and, above all, unity of purpose,” he said.
The meeting, which ended last Friday, was marked by the absence of some leaders – among them the heads of state of the Solomon Islands, Vanuatu and Fiji, which will host a preparatory session for COP31 in October (referred to as the pre-COP31). There were also tensions over Taiwan’s participation, with China objecting to its presence as an observer.
The forum’s final declaration, published after it ended and signed by all its members, reaffirms that climate change is the “single greatest threat to the security, livelihoods and wellbeing of Pacific peoples”, and notes “the importance of a focused, high-level declaration” at the pre-COP31 to build “political momentum towards COP31”.
Australia and Pacific islands have invited world leaders to attend the pre-COP31 gathering, which will be held in Fiji and Tuvalu from October 5 to 8. While usually a technical meeting for negotiators, the island nations aim to issue a political declaration at the gathering calling for strong outcomes in Türkiye.
Chris Bowen, Australia’s climate minister and COP31 president of negotiations, said in a speech during the Pacific forum that his country is “determined to use COP31 to progress the agenda to make it easier for countries to access the climate finance they need”.
“We won’t miss the opportunity to ensure COP31 is a Pacific COP. Not just because of the location of pre-COP but because of the agenda we are shaping through the Action Agenda at COP31,” he said.
The Action Agenda is a large portfolio of climate initiatives and coalitions uniting governments, businesses and civil society outside of the formal negotiations on everything from health to methane emissions.
Renewable energy investment plan
Announced a year ago, the island nations launched a $14-billion investment plan for a “100% Renewable Blue Pacific” at the forum in Palau. The plan lists strategic projects that would reduce the region’s high dependence on fossil fuel imports, whose soaring costs have become a major burden since the Iran war.
The projects include a $52-million programme managed by Australia to develop off-grid renewables in remote communities across the Pacific, as well as a $100-million blended finance fund aimed at supporting private-sector investments in wind and solar, among others.
Currently, some countries in the Pacific are spending up to a quarter of their GDP importing diesel to power electricity generation, according to a new report by the University of New South Wales in Australia. The investment plan launched at the forum aims to reduce these costs by adding 2.2 gigawatts of renewable generation and around 9 gigawatt hours of electricity storage.
To channel funds into the region, the plan also highlights the role of the recently established Pacific Resilience Facility (PRF), a regional fund that seeks to swiftly disburse funds to climate-vulnerable communities at the local level. Bowen said he would promote the facility to world leaders attending COP31 and “ask for their support”.

Call to transition away from fossil fuels
Separately, the forum endorsed the Belau Declaration which emphasises the need to keep the 1.5C Paris Agreement temperature goal alive. A UN report last week showed that overshooting this limit is now inevitable, but deep emissions cuts could still bring global temperatures back down by the end of the century.
Pacific nations expect to rally support for this declaration at the pre-COP, with Fiji’s climate minister Lynda Tabuya saying in a statement: “Palau is where we build the political mandate. Pre-COP is where we take it to the world.”
The political declaration also says that countries must accelerate the global transition away from fossil fuels “towards a renewable energy future”, and calls for greater recognition of the importance of ocean health in addressing climate change.
UN sets out narrow path back to 1.5C warming after inevitable overshoot
As part of the forum’s outcomes in Palau, countries also noted Tuvalu’s efforts to host the second global conference on transitioning away from fossil fuels, which will gather government representatives in April next year to follow up on this year’s inaugural conference in Santa Marta, Colombia.
Speaking to journalists at the forum, Vanuatu’s climate minister Ralph Regenvanu questioned Australia’s role in talks about phasing out fossil fuels at COP31, adding that “the very least a country like Australia should be doing is stopping future expansion, and it’s not doing that”. During the PIF, the country approved the extension of a major mine that digs and exports coal for steel-making, giving it permission to keep producing until 2055.
Rising seas trigger “development emergency”
As leaders met in one of the world’s regions most threatened by sea-level rise, UN Secretary-General António Guterres released a new report warning that rising seas are now “one of the most profound threats to populations around the world in developed and developing states alike”.
Presenting the report at UN headquarters in New York, Assistant Secretary-General for Economic Development Navid Hanif said rising sea levels are not a “future risk any more” but an accelerating “development emergency” that could hinder progress in vulnerable regions like the Pacific and least developed countries.
The report warns that seas are rising “faster than at any point in recorded history”, with 2024 setting a new record of 5.9 millimetres. This has been driven by human-induced climate change mainly through a process known as thermal expansion – where rising heat causes the ocean to expand – as well as the melting of ice sheets.
Pacific islands seek backing for new regional fund ahead of COP31
The report notes that about 1.2 billion people around the world are exposed to coastal flooding, and says some low-lying islands in Vanuatu, the Solomon Islands and Fiji are already facing forced relocations. Globally, rising seas could cost more than $1 trillion every year by 2050, it adds.
“We cannot stop sea level rise this century but we can determine how much worse it becomes. About half a metre of sea level rise is already locked in in this century because of warming that has already occurred, but beyond that our choices matter enormously,” Hanif told journalists.
Bill Hare, CEO of think-tank Climate Analytics, said the report was a “wake-up call” to the leaders of high-emitting countries that their failure to cut carbon emissions is “creating major risks for the future alongside the impacts we can already observe around us”.
Guterres is set to host a high-level meeting on addressing the threat of sea level rise this month during the UN General Assembly, where countries are expected to adopt a declaration that calls for stronger action, expanded access to finance and “ongoing dialogue” to tackle the issue.
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At regional summit, Pacific islands ask for COP31 support for clean energy and finance
Climate Change
Palestine: Israel’s bombing has left Gaza vulnerable to climate change
Israel’s bombardment of Gaza during the conflict that broke out in October 2023 has wrecked progress towards adapting the enclave to climate change and left two million Gazans vulnerable to heatwaves, drought and disease, the Palestinian Authority (PA) said in a new climate plan submitted to the United Nations.
Palestine’s third nationally determined contribution (NDC), uploaded to the UN climate body’s website this week, says that while “the aggression on the Gaza Strip did not make the climate worse”, “it removed the housing, water and sanitation systems, health facilities, energy networks, roads and livelihoods through which people absorb a climate they were already struggling with.”
The 91-page document lists the types of infrastructure it says Israel has destroyed and notes how the destruction will worsen the impacts of climate change. It says the bombing of hospitals and rising hunger have make it harder for Gazans to cope with the health impacts of climate-driven heatwaves and waterborne diseases.
The destruction of water tanks, boreholes and desalination plants, meanwhile, have left Gazans struggling with the effects of water shortages and drought, while mass unemployment reduces people’s ability to afford climate-driven price rises. The erasure of most of the Strip’s homes makes it more difficult for people to avoid the sun’s increasing heat, the NDC said.
Many Gazans are now living in the ruins of collapsed buildings or in makeshift shelters and tents that offer little or no protection from high temperatures.
Palestine’s previous goals to cut emissions and adapt to climate change in Gaza, expressed in its last NDC five years ago, were based on a pre-war baseline that “no longer describes anything that exists”, the NDC says. Progress made since 2021 has now been destroyed, it adds.
Green reconstruction of Gaza
Instead of continuing to aim for these adaptation and emissions-reduction goals, the PA is now calling for the green reconstruction of Gaza. It says buildings should be constructed again in an energy-efficient manner with solar panels and served with modern water, waste and transport systems.
While the PA, controlled by the Fatah political party, continues to claim legitimate control of Gaza, the strip was effectively governed by Fatah’s rival Hamas between 2007 and the recent war. Control is now split between Israel and the political wing of Islamist militant group Hamas, after a US-backed ceasefire took effect in October 2025, although a UN-backed committee plans to take over.
The United Nations, European Union and World Bank have jointly estimated that Gaza needs $71.4 billion of investment in the next two years to recover and build back. This process should be Palestinian-led, they said in April.
But US President Donald Trump has said the US should “take over” and “own” Gaza and redevelop it as the “Riviera of the Middle East”. Israel’s right-wing prime minister Benjamin Netanyahu has said that Israel should control the territory with civil administration managed by Palestinians favourable to Israel.
With occupation, targets conditional
In the other part of Palestine, the West Bank, the Palestinian Authority carries out some government functions, but ultimate control rests with Israel, which has occupied the West Bank since 1967.
Because Israel controls planning in most of the West Bank, the NDC argues that the PA cannot pursue all the climate projects it wants. In addition, Israel restricts the movement of PA officials, making data collection difficult, and controls the West Bank’s electricity supply meaning that the PA cannot control whether it comes from dirty or clean sources of energy.
Given this situation, the NDC says that all of Palestine’s new climate targets are conditional but it will aim to reduce emissions 12.8% below a business-as-usual baseline by 2035 and 17.1% by 2040. If the Israeli occupation ends and Palestine regains full sovereignty over its land and resources, it will aim for reductions of 15.1% and 19.1% by 2035 and 2040 respectively under an “independence pathway”.
That could allow, for example, for greater electrification and reducing emissions per unit of growth, the document said.
To achieve the 2035 emissions-reduction target and adapt to the impacts of climate change, the PA says it needs $8.6 billion in total. This funding would be spent on measures like encouraging solar farms and rooftop solar and scaling up solar water heating to cover four-fifths of households. To complement the planned increase in solar power, the authority wants to modernise the electricity grid and install battery storage.
In the transport sector, it aims to promote the uptake of electric vehicles, develop bus rapid transit corridors and scrap old polluting trucks and buses. In Gaza in particular, it wants to deploy 66 electric buses when the conflict ends.

To adapt to climate-driven drought, the NDC includes initiatives to reuse wastewater through treatment plants, build desalination plants in Gaza to remove salt from seawater, and promote irrigation for farmers.
The new climate plan was prepared by Palestine’s Environment Quality Authority, with support from the United Nations Development Programme and the governments of Britain and Spain.
The United Nations recognised Palestine’s statehood in 2012 and it joined the UN’s climate convention and signed the Paris climate agreement – which requires countries to submit more ambitious NDCs every five years – in 2016.
The Israeli foreign ministry did not respond to a request for comment. But in late 2024, then Israeli climate envoy Gideon Behar told Climate Home News that the war and the resulting environmental destruction in Gaza was the fault of Hamas.
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Palestine: Israel’s bombing has left Gaza vulnerable to climate change
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