“Without more substantial financing, many vulnerable countries will remain underprepared for escalating climate challenges,” said Ani Dasgupta, CEO of the World Resources Institute.
The agreement has drawn mixed reactions. Per BBC, India criticized the deal as a "paltry sum," while Nigeria labeled it a "joke." Delegates from the Marshall Islands expressed disappointment, describing the funding as woefully inadequate, yet acknowledged it as a starting point.
Meanwhile, wildlife conservation organization WWF expressed concern, calling the deal far below the ambition needed.
"The world has been let down by this weak climate finance deal. This is a serious blow to climate action, but it must not stall the solutions that are desperately needed around the world," said WWF Global Climate and Energy Lead and COP20 President Manuel Pulgar-Vidal.
The world remains on track for a temperature rise of 3.1°C by the century’s end. That’s far above the Paris Agreement’s goal of limiting warming to 1.5°C, according to recent UN reports.
Additionally, the summit finalized rules for a global carbon market. This system will allow companies to offset emissions by purchasing credits linked to reforestation and renewable energy initiatives. These efforts aim to accelerate the implementation of Nationally Determined Contributions (NDCs), with countries required to update their climate action plans by February 2025.
The Brazilian city of Belém will host the next summit, COP30, in November 2025. Brazilian officials have promised a high-stakes event they call the "COP of COPs," focusing on limiting global warming to 1.5°C.
iShares Global Clean Energy ETF (NASDAQ:ICLN) rose following the news. At 12:45 pm EST, it was trading 1.83% higher at $12.34.
Read Next:
Image: Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
