COP 29 Conference in Baku – Your Morning Coffee Digest
The COP 29 climate change conference took place in Baku, Azerbaijan, from November 11 to 24 2024. Key takeaways included:
New Climate Finance Agreement: A new goal, the New Collective Quantified Goal on Climate Finance (NCQG), was agreed upon to significantly increase financial support for developing countries. Developed countries will triple their annual climate finance to $300 billion by 2035. Overall, climate finance will rise to $1.3 trillion annually, including contributions from all sectors (public and private). There is a focus on grants and avoiding further debt burdens. This funding aims to help meet the goals of the Paris Agreement, particularly limiting global temperature rise to well below 2°C, ideally 1.5°C.
Carbon Market Rules: The conference finalised rules under Article 6 of the Paris Agreement, which allows countries to cooperate on emissions reduction via carbon trading. Carbon trading allows countries or companies to buy and sell “carbon credits” or “carbon allowances” as a way to meet their emissions reduction targets. The new rules cover both voluntary emission reductions (ITMOs) and a multilateral mechanism for carbon credit trading, ensuring transparency and environmental integrity.
Overall Reception: Despite progress in climate finance, developing nations criticized the outcome as insufficient, with many calling for more ambitious financial commitments. There were also concerns about the lack of consensus on fully phasing out fossil fuels. However, the rules for carbon markets were hailed as a positive step, offering new opportunities for private sector finance in emission reduction projects.
Looking Ahead: COP 30 will be held in Belém, Brazil in 2025, where discussions will continue on how to achieve the NCQG and further climate goals.
Comment: The overall sentiment at COP 29 was mixed, with some praising the finance agreements, while others felt the pledges were not ambitious enough to address urgent climate needs. While the tripling of climate finance and the establishment of clear carbon market rules are important steps forward, they may not be sufficient to meet the scale of the climate crisis. The lower-than-expected financial commitments, particularly for developing countries, highlight the ongoing gap between promises and actions. Moving forward, it is crucial for future COPs to not only secure more substantial financial pledges but also implement stronger, more binding commitments to reduce emissions and phase out fossil fuels if we are to avoid the most catastrophic impacts of climate change.
Subcribe to news and views
