Economists warn Cop29 climate finance deal underestimates inflation impact on funding for poor nations

At Cop29, negotiators agreed on a $300 billion annual climate finance target by 2035, which is presented as a tripling of the previous $100 billion goal. However, economists argue this figure does not account for inflation. Without inflation adjustments, the real value of the $300 billion pledge will be significantly lower, potentially losing about 20% of its value by 2035. This means poorer nations will receive even less than expected. Experts have criticized the deal for lacking necessary adjustments and quality indicators, stating it falls short of the financial needs of developing countries. The commitment is seen as inadequate and poorly structured for effective climate finance.