The European Union, the United States and other rich countries have agreed at the United Nations climate change summit (COP29) to raise their offer for a global funding target to $300 billion a year by 2035, sources told Reuters on Saturday.

The shift in position came after developing countries on Friday rejected a $250bn funding proposal from conference host Azerbaijan, which they said was insultingly low.

Five sources familiar with the closed-door discussions said the EU was in favour of accepting the higher amount. The United States, Australia and Britain also agreed, two sources said.

The draft agreement also sets a broader goal of raising $1.3 trillion a year in climate finance by 2035, including money from all government and private sources.