PRC climate finance for developing nations at COP29

context: The 2024 Annual Report on China’s Policies and Actions to Address Climate Change, issued by the Ministry of Ecology and Environment on the eve of COP29 (UN Climate Conference 2024), provided insights to the PRC's principled stance for this year's conference.

At COP29 (UN Climate Conference 2024) in Baku, Azerbaijan, debates are intensifying over climate finance, reports Caixin. The PRC’s representative, vice premier Ding Xuexiang 丁薛祥, highlights the need for robust financial and technological support to strengthen global climate response.

Ding urges developed countries to enhance their funding and technology transfer to developing nations, noting the PRC’s commitment to this cause, having provided over C¥177 bn since 2016 to help other countries address climate change.

The NCQG (New Collective Quantified Goal) for climate finance is aimed at determining how much funding developed nations should provide to developing countries annually post-2025.

Negotiations have been challenging, as developed countries have yet to agree on a specific target, while developing nations have united in advocating for a minimum annual commitment of US$1.3 tn. A draft resolution prepared in October outlines a range from US$100 bn to US$2 tn annually and includes criteria to broaden the pool of donor nations, such as income per capita and cumulative emissions levels. This proposal implies that high-income, high-emission countries would also contribute.

The Global Development Centre notes that the PRC meets some but not all of the draft’s financial contributor standards, indicating the complexity of determining which nations should contribute.

Developing countries have emphasised that the NCQG should allocate funds equitably, particularly to climate-vulnerable countries. Meanwhile, developed nations have called for broadening the contributor base, suggesting that economically advanced developing nations meeting certain thresholds should also participate in funding. Developing countries, however, argue that this stance contradicts the UN principle of 'common but differentiated responsibilities', which prioritises the role of developed nations in funding climate actions.

In its 2024 Climate Policy Report, the PRC reiterated the importance of adherence to the United Nations Framework Convention on Climate Change and Paris Agreement principles, cautioning against adding debt-related mechanisms that could complicate climate financing. 

The report stressed the need for transparent, grant-based finance from developed nations to mobilise private sector investment without introducing debt burdens, keeping COP29 focused on achieving practical, balanced solutions for all parties.