After two weeks of intense negotiations, the 29th Conference of the Parties (COP29) concluded in Baku with a landmark agreement, pledging an annual $300 billion in climate finance for developing countries until 2035. This agreement represents a significant increase from the previous commitment of $100 billion annually by 2020, which was only reached in 2022.

The new financial commitment aims to assist vulnerable nations in adapting to the adverse effects of climate change, including floods, heatwaves, and droughts, while encouraging investment in low-carbon energy solutions instead of traditional fossil fuels. This increase is largely supported by developed nations, including the European Union, United States, Canada, Australia, Japan, and New Zealand, under the United Nations' auspices.

Notwithstanding its significance, the pact did not escape criticism. Several developing countries, represented by figures such as Indian delegate Chandni Raina, have expressed discontent, labeling the financial commitment as insufficient. Raina emphasized the document as a symbolic gesture lacking substance due to inadequate funding relative to dire climatic challenges.

Voices from Africa, articulated by Kenyan representative Ali Mohamed, shared similar sentiments, describing the pledged amounts as meager and overdue. Meanwhile, criticism from the Climate Action Network, encompassing numerous environmental NGOs, accused developed nations of lacking genuine commitment, suggesting the agreement fell short of expectations.

Internationally, the response to the pact was mixed. The United States President Joe Biden hailed it as a pivotal step towards combating global warming, reiterating his administration's commitment to progressive climate actions, despite skepticism from former President Donald Trump on climate change. Simultaneously, European leaders, like the European Commission President Ursula von der Leyen, lauded the agreement's potential to stimulate significant investments in clean energy transition.

However, the challenges ahead are daunting. United Nations Secretary-General Antonio Guterres acknowledged the need for more ambitious financial and mitigation outcomes, urging governments to treat the agreement as a foundation for continued advancement. He emphasized the necessity for swift conversion of commitments into actual financial resources to capitalize on economic opportunities from clean energy transitions.

Further complexities arise from the global carbon market introduced by COP29, allowing wealthy nations to meet climate targets through investments in environmental projects in Africa and Asia instead of cutting emissions domestically. The adoption of carbon credit regulations attempts to expand funding flexibility but has sparked controversy over its genuine impact on emission reductions.

While COP29 signals a turning point for global climate finance, it also reveals persistent geopolitical and economic rifts. Calls from Europe to broaden contributions to climate finance, involving economies like China and Gulf nations, weren't strictly mandated, albeit encouraged. Instead, the agreement sets an aspirational goal of $1.3 trillion in annual climate finance from both public and private sectors by 2035.

Amidst controversies and optimistic ambitions, the climate pact from COP29 reinforces the urgency of addressing climate change collaboratively. By empowering developing nations to adopt renewable energy and adapt to warming climates, the plan aspires to uphold the Paris Agreement's key objective of limiting global temperature rise to 1.5 degrees Celsius. However, as many stakeholders argue, turning promises into real, actionable plans remains the ultimate challenge for global climate governance.