Western leaders welcomed the deal, as US President Joe Biden says the world is "one significant step closer" to achieving climate goals.

United Nations climate talks adopted a deal to inject at least $300 billion annually in humanity's fight against climate change, aimed at helping developing nations cope with the ravages of global warming in tense negotiations.

The cost of borrowing money can be up to seven times higher for developing countries than the US and Europe. This is because lenders see poorer countries as riskier places to invest, given their perceptions of political instability or low credit ratings. This arrangement entrenches inequality.