China has led a call for developed countries, including Australia, to provide more than $US1.3 trillion ($1.8 trillion) a year to developing nations because of
climate change.
The demand was made at the UN COP29 meeting in Baku, Azerbaijan, where countries have agreed to update an existing pledge of $100bn a year.
Climate Change and Energy Minister Chris Bowen has been nominated to play a key role in the negotiations for what has been called the New Collective Quantified Goal.
Environment groups had called for a target of $US1 trillion a year. But a group of 77 developing countries, led by China, called for $US1.3 trillion a year in new, additional, adequate and affordable finance to address mitigation, adaptation and loss and damage.
A group of least developed countries wants at least $220bn a year and small island states, including Pacific nations, want a minimum of $39bn a year.
South American countries have yet to set a figure. China is not legally expected to contribute to the fund because it is considered a developing country.
Most of the money is expected to come from the US, Europe, Australia, Japan and other major economies.
But last week’s re-election of
Donald Trump as US president has put a cloud over the talks in Baku.
A summary of Tuesday’s discussions released by the International Institute for Sustainable Development said the US had opposed inclusion of loss and damage in the demands.
And the EU, Japan and New Zealand had stressed the need to “discuss the quantum in the context of the contributor base, instruments and timelines”.
If Mr Trump pulls the US out of the Paris Agreement as he has promised to do, the US will not be required to make public its greenhouse gas emissions or make payments to other countries.
This will increase the burden on those that remain.
Activist group 350.org said “fair climate finance is being held up by rich countries in the Global North who have a historic debt in responsibility to this due to a legacy of colonialism, and predatory profiteering at the expense of many Global South countries and communities”.
“While governments may claim that finding money is the missing piece to commit to these agreements and plans, the truth is that this money exists, but we need the political will to redirect it”, the group said.
The Baku talks have got off to a controversial start with Azerbaijan President Ilham Aliyev declaring that fossil fuels were a “gift of the God”. He said countries could not be blamed for bringing their natural resources to international markets.
European demand for oil and gas from Azerbaijan has been boosted by Russia’s war on Ukraine.
Major world leaders have elected not to attend the Baku talks. But British Prime Minister Keir Starmer announced a new emissions reduction target of 81 per cent by 2035 from 1990 levels.
The UK’s current target is 68 per cent which is it not on track to meet. Mr Starmer said in Baku that the UK was “building on our reputation as a climate leader”.
The Australian government is not expected to announce a 2035 climate target until after the federal election.