AFP reported on Friday that negotiations at COP29 in Baku stalled after developing nations rejected a $250 billion climate funding offer from wealthy countries, calling it inadequate.

The proposal aimed to increase annual climate aid from $100 billion to $250 billion by 2035, far below the $500 billion demanded by vulnerable nations to combat climate change and its impacts.

Representatives from small island states and African countries criticized the offer as "shameful" and "unacceptable," warning of catastrophic consequences.

"It is shameful to put forward texts like these," said Tina Stege, climate envoy for the Marshall Islands, whose very existence is under threat from rising sea levels.

Kenyan activist Obed Koringo called the offer "a joke," warning, "No deal is better than a bad deal."

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'Extraordinary reach'

Meanwhile, the US signaled no intention to negotiate further. According to AFP, senior officials from the Biden administration reportedly called the $250 billion offer an example of "extraordinary reach."

Analysts argue that with the shadow of President-elect Donald Trump looming large, expectations are mounting that the US will retreat from climate diplomacy altogether.

Europe, for its part, called for private sector involvement to meet financing goals. 

"Europe wants to live up to its responsibilities but also must ensure we don’t make promises we can't fulfill," German Foreign Minister Annalena Baerbock said.

Fossil Standoff

Talks also faced resistance over phasing out fossil fuels, with Saudi Arabia rejecting language targeting the sector. 

A Saudi official representing the Arab Group told AFP in Baku that the bloc would "reject any text that singles out specific sectors, including fossil fuels."

During the opening ceremony of COP29 in Baku, Azerbaijan's President Ilham Aliyev delivered a speech defending his nation's oil and gas industries.

He described these resources as "a gift from God," a remark that sparked criticism from climate activists and negotiators who viewed it as undermining efforts to transition away from fossil fuels.

Read more: Aliyev urges EU to end 'hypocrisy', support gas exports

As negotiations drag on, the urgency of the climate crisis grows starker. Disasters tied to climate change have battered the globe during COP29, including deadly storms in the Philippines and Honduras, drought emergencies in Ecuador, and historic floods in Spain.

"This is the worst COP in recent memory," said Mohamed Adow of the Climate Action Network, pointing to Azerbaijan’s lack of leadership as a significant factor in the stalled talks.