UN Climate Summit Hits Agenda Fight: Finance Key Issue

New Delhi, Nov 11 (PTI) The UN climate conference in Baku, Azerbaijan, opened on Monday with a sharp clash as developing and developed countries debated over the selection of the issues for the agenda for the next 12 days.

Agenda disputes are common at UN climate conferences, but this one is especially significant, as countries have limited time to agree on a new climate finance goal to help developing countries adapt to and fight climate change, the central issue this year.

The conference opened with Azerbaijan, the host of this year's UN climate conference, calling on all countries to urgently resolve outstanding issues to agree on a new climate finance goal, which UN climate chief Simon Stiell said is in the self-interest of every nation.

The proceedings were then suspended so delegates could negotiate on the agenda.

The opening plenary did not resume until 7 pm IST, as developed and developing countries struggled over whether to make "unilateral trade measures", such as the European Union's Carbon Border Adjustment Mechanism (CBAM), an agenda item at COP29.

China, on behalf of the BASIC group of countries, last month submitted a proposal to the UN climate body requesting that this year's COP address the issue of unilateral trade measures.

The CBAM is the EU's proposed tax on energy-intensive products -- such as iron, steel, cement, fertilizers, and aluminum -- imported from countries like India and China. The tax is based on the carbon emissions generated during the production of these goods.

The EU has earlier argued that this mechanism creates a level-playing field for domestically manufactured goods, which must adhere to stricter environmental standards and helps curb emissions from imports.

However, other nations, particularly developing countries, have pointed out that such a tax could harm their economies and make trade with the EU expensive. They have contended that under UN climate rules, no nation should impose emission reduction strategies on others.

Another contentious agenda item is the focus on climate finance versus discussion on all global stocktake outcomes.

LMDC countries, including India and China, along with the African Group, want COP29 to prioritise climate finance, while developed countries including the US, the UK, and the EU want to discuss all stocktake outcomes, including mitigation and transitioning away from fossil fuels.

According to Meena Raman from the Third World Network, the dialogue is supposed to focus on finance, but developed countries are resisting a primary focus on funding to help developing countries adapt to and combat climate change.

"They are saying the dialogue should cover all Global Stocktake outcomes (from COP28), with more emphasis on mitigation," Raman said during a press conference.

"They are trying to divert attention from the crucial issue of climate finance," she added.