Countries from around the world reached an agreement to inject at least £240 billion annually into humanity’s fight against climate change, with the aim of helping poor nations.

After two weeks of chaotic negotiations at the Cop29 climate summit, nearly 200 nations agreed on the contentious financial pact early in a sports stadium in Azerbaijan.

The £240 billion will go to developing countries that need the money to wean themselves off the coal, oil and gas that are warming the world, adapt to future warming and pay for the damage caused by climate change’s extreme weather.

That’s nowhere near the full £1 trillion sought by developing countries, but it’s three times the £80bn-a-year deal from 2009 that expires.

Energy Secretary Ed Miliband welcomed the agreement reached as “a critical eleventh-hour climate deal”.

“It is not everything we or others wanted but is a step forward for all of us,” Miliband said in a statement released shortly after the deal was announced.

He added the pledge to provide £240bn a year in funding by 2035 to the developing world “rightly reflects the importance of going beyond traditional donors like the UK, and the role countries like China are playing in helping those on the frontline of this crisis”.

“If used properly, this funding could reduce the emissions equivalent of one billion cars and protect nearly one billion people from the effects of climate change,” he said.

Energy Secretary Ed Miliband welcomed the deal as “a critical eleventh-hour climate deal”

A general view of the UN climate conference COP29 in Baku (archive photo)

Miliband claimed the overall deal “sends the signal that the transition to clean energy is unstoppable”

Miliband claimed the overall deal “sends the signal that the transition to clean energy is unstoppable”.

He insisted it “will drive the transition to clean energy which is vital for jobs and growth in the UK and to protect us all against the worsening climate crisis”.

“It’s the biggest economic opportunity of the 21st century and by championing it we can help bring in private investment,” added the UK’s energy secretary.

Miliband admitted that there was “much more work to be done” if the world was to “prevent climate catastrophe”, but that Britain had “advanced ambitions in Baku”.

“We will keep up the momentum and work with other countries before the world meets again in Brazil for COP30,” he said.

“Only by doing this can we keep future generations safe and reap the benefits of the clean energy revolution.”

UN climate chief Simon Stiell acknowledged the difficult negotiations that led to the agreement, but hailed the outcome as insurance for humanity against global warming.

“It’s been a difficult journey, but we’ve delivered a deal,” Stiell said. “This deal will keep the clean energy boom growing and protect billions of lives.”

Miliband admitted there was “a lot more work to do” if the world was to “prevent climate catastrophe”, but that Britain had “pushed for ambition in Baku”

UN climate chief Simon Stiell (pictured) acknowledged the difficult negotiations that led to the agreement

“But like all insurance – it only works – if the premiums are paid in full and on time.”

He went on to admit that the deal was imperfect.

Neither country got everything they wanted, and we leave Baku with a mountain of work to do. So this is no time for victory laps, he says in a statement.

The US and the EU have wanted newly rich emerging economies such as China – the world’s largest emitter – to enter.

The final deal “encourages” developing countries to make contributions on a voluntary basis, reflecting no change for China, which already provides climate finance on its own terms.