Brazil's Lula returns amid crucial climate finance talks at COP30

Belem: Brazil's President Luiz Inacio Lula da Silva is back at COP30, bringing renewed urgency to land an agreement on the political package outlined in the Mutirao text released by the Brazilian presidency on Tuesday. Negotiators and ministers have been working late into the night to respond to the text and bridge significant differences. A second iteration of the text, as per COP30 President Andre Correa do Lago, is expected late Wednesday.

As of midday, no new text had been released. While countries broadly agree that Tuesday morning's draft provides a solid basis for negotiations, red lines remain. Developing countries are focused on finance-particularly for climate adaptation -and are demanding clarity and accountability on public funds provided by developed nations. For industrialised countries, standalone discussions on public funds are a red line. They have pushed back, arguing that some developing nations, notably China, India, and Saudi Arabia, are attempting to renegotiate the agreement at Baku.

Finance has always been a difficult issue in climate negotiations, and the options in the first draft of the Mutirao text reflect these differences. Developing countries have proposed a work programme for the binding implementation of Article 9.1 of the Paris Agreement, which outlines the financial obligations of industrialised nations. Developed countries have pushed back, instead signalling a willingness to discuss the entirety of Article 9, covering all financial issues-including the new $300 billion-a-year goal by 2035, to be mobilised from all sources, and financial flows between developing nations. Developing countries have also called for a tripling of adaptation funds and an equal share of funds compared to mitigation efforts. Finding a compromise on finance is critical to achieving the political agreement and advancing climate action, including the implementation of past commitments.


With President Lula back at COP30, expectations are high for positive momentum in resolving these divergences. Delegations from various negotiating groups have been meeting with the Brazilian president, and a second iteration of the Mutirao text, reflecting a political agreement focused on climate action and enabling implementation, is expected soon.