World Still Split Over Money as Clock Ticks on COP29

A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
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World Still Split Over Money as Clock Ticks on COP29

A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).

A fresh draft deal published Thursday at the deadlocked COP29 climate talks shows rich and poor countries still divided as time runs out to strike a finance agreement for developing nations.
The streamlined text released in Azerbaijan recognizes developing countries need a trillion dollars per year to fight global warming, but does not present a much-sought figure needed to land the deal.
This will be the focus as nations go back to the negotiating table with just a day to go until COP29 is supposed to conclude in Baku, AFP reported.
The draft reflects the broad and opposing positions of developed countries -- which are obligated to pay climate finance -- and the developing countries that receive it.
"The new finance text presents two extreme ends of the aisle without much in between," said Li Shuo, director of the China climate hub at the Asia Society Policy Institute.
The main sticking points -- who should pay, how much and the type of funding -- remain unresolved in the slimmed-down 10-page document.
Ali Mohamed, the chair of the African Group of Negotiators, said the "elephant in the room" was the lack of a concrete number.
"This is the reason we are here... but we are no closer and we need the developed countries to urgently engage on this matter," said Mohamed, who is Kenya's climate envoy.
Rich countries have been under pressure to say how much they are willing to provide developing countries to wean off fossil fuels and build resilience against disaster.
Some developing countries have pushed for a final commitment of $1.3 trillion, mostly in grants from government coffers, and not loans they say add to debt.
The European Union and the United States, two of the biggest climate finance providers, had said they would not reveal a figure until the scope of any deal was much clearer.
"The fact there is no number specified for the climate finance goal is an insult to the millions of people on the frontlines bearing the brunt of climate change impacts," said Greenpeace's Jasper Inventor.
Mohamed Adow, a Kenyan climate activist, also lamented the lack of clarity around a figure.
"We came here to talk about money. The way you measure money is with numbers. We need a cheque but all we have right now is a blank piece of paper," said the founding director of think tank Power Shift Africa.
Developing countries, excluding China, will need $1 trillion a year in foreign assistance by 2030.
This number rises to $1.3 trillion annually by 2035, according to an expert economic assessment commissioned by the United Nations.
But many of the nations obligated to help cover this cost face political and fiscal pressures, and insist they cannot rely on their balance sheets alone.



IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
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IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.