The EU has urged “wealthier high-emitting” developing nations to voluntarily contribute to climate finance without changing the traditional classification of rich and poor countries, signaling a shift from its earlier position that had stalled progress in the UN climate talks.

Meanwhile, the developing countries said there can be no discussion on other issues if rich nations refuse to engage on the real issue, which is climate finance, even as the UN climate chief warned on Monday that the talks could go into reverse "if countries refuse to compromise." The climb down by the European Union (EU) from a hard stance came after Azerbaijan, the summit’s host, urged nations to find a middle ground on key issues and the UN climate chief called on participants to “cut the theatrics and get down to real business”.

Securing a new climate finance package to help developing countries reduce emissions and adapt to climate change is the top priority of this year’s UN climate talks. Developing nations need at least USD 1.3 trillion annually to tackle worsening climate impacts.

The EU and some developed countries argue that such a large sum can only be achieved if “wealthier high-emitting” developing nations, such as China and Gulf states, also contribute.

However, this proposal has been a major sticking point, as many developing countries view it as an attempt to shift responsibility away from those who historically benefited from industrialisation.

European Commissioner for Climate Action Wopke Hoekstra suggested a compromise on Monday proposing voluntary contributions from these nations without changing the traditional classification of developed and developing countries.

“We will be welcoming to those countries who do make such a step because, in the end, this is not about dogmatism. This is about solving one of the largest problems humanity is facing,” Hoekstra said.

Asked if the EU wanted all contributions to be voluntary -- including from wealthy countries -- he said that the EU would “continue to stick with its commitments”.

Hoekstra said that affluence brings responsibility. “Others also have a responsibility to contribute based on their emissions and economic growth,” he added.

The summit’s host, Azerbaijan, is concerned over the slow pace of negotiations.

“Parties are not moving toward each other quickly enough,” COP29 President Mukhtar Babayev said at a press conference on Monday, adding countries still have significant disagreements on the structure, funding amount, and contributors to the new climate finance goal.

He urged ministers arriving this week to act decisively. “Politicians must engage immediately and constructively.” Babayev also called for leadership from G20 heads of government, meeting in Rio de Janeiro, Brazil, to drive progress. “Their commitment is essential. I urge them to send a positive signal and provide a clear mandate for action,” he said.

UN climate chief Simon Stiell warned the talks could go into reverse if countries dig in and “refuse to move on one issue, until others move elsewhere”.

He called on ministers to roll up their sleeves and dive into the difficult discussions.

Although climate talks often extend into overtime to resolve contentious issues, many negotiators warn that this could be the first time since the Copenhagen talks in 2009 that countries fail to reach an agreement.

A negotiator from a developing country told PTI that the global South expects wealthy nations -- who have historically contributed the most to greenhouse gas emissions and possess greater resources and capacity to tackle climate change -- to fulfill their commitment to provide “climate finance, which underpins everything.” “You cannot demand ambition without providing the means of implementation. There can be no discussion on other issues if you refuse to engage on the real issue, which is finance,” the negotiator said, requesting anonymity.

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