By Dr. Miniya Chatterji
In the aftermath of the US election and in a neighbourhood of human right violations as well as two full blown wars, COP29 in Baku was neither easy nor straightforward. It was also in stark contrast to COP28 last year, where country representatives and private sector leaders rolled into Dubai with enthusiasm – some for meaningful climate action while others for attention.
Indeed this year the participation in COP29 was far slimmer. Several ministerial and CEO level participants including those from India gave the meeting a skip, limiting the scope of negotiations and commitments on critical issues such as climate finance, adaptation measures, and the transition from fossil fuels. Those committed to staying the course and moving the needle, were there.
The meeting in Baku was therefore a critical moment for decisions on climate finance, nature, climate resilience and private sector climate action, amongst a smaller group.
As a former investment executive and a keen promoter of the voice of developing economies on climate action, I was especially enthusiastic about developments on climate finance this year. The world needed a COP29 outcome that delivered a robust climate finance agreement with clear signals for countries to deliver ambitious and investible national plans that address the root causes of climate change.
However, COP29 fell short of these expectations. The meeting was unable to reach a consensus on the New Collective Quantified Goal for climate finance, a key agenda item at the meeting that was intended to supersede the previous commitment of $100 billion annually to support climate mitigation and adaptation efforts in developing nations. The draft text released on the last day of the summit proposed mobilising $250 billion sourced from a mix of public, private, bilateral, and multilateral funding led by developed nations, annually by 2035. This figure fell well below the $1.3 trillion annually requested by developing nations to address the escalating impacts of climate change in their countries.
Similarly, limited progress was also achieved on the Global Goal on Adaptation, as it got hindered by inadequate financial commitments from developed countries. The Adaptation Fund fell short of its $300 million target, with pledges covering only a third of that amount. Key gaps in the adaptation framework remain, including mechanisms for finance, technology, capacity-building, and measurable progress indicators.
It was also disappointing that the meeting in Baku did not reach a decision regarding specific timelines or robust language to phase out fossil fuels. The draft of the ‘mitigation work programme’ omitted many references to the outcomes of last year’s meeting in Dubai. Ocean-related issues were also not included in the meeting’s official agenda despite the ocean’s critical role in climate related regulations.
However, the big win at the meeting came on its second day with an agreement on the standards for creating carbon credits under Article 6.4 of the Paris Agreement. The finalisation of the standards advanced global carbon market mechanisms, paving the way for an UN-backed global carbon market, facilitating the trading of carbon credits and incentivising countries to reduce emissions and invest in climate-friendly projects.
Another achievement was a new emphasis at COP29 on countries to start submitting Biennial Transparency Reports. These reports – the first of which are required by December 31 2024 – aim to enhance transparency by providing a structured framework for countries to report on their climate actions, targets, and support mechanisms.
Further, Multilateral Development Banks made a significant pledge to enhance climate finance for low and middle income countries, aiming to reach $120 billion annually by 2030. This new commitment includes an increase of $42 billion, which represents a 70% uplift from the 2023 figures, to support these nations in their efforts to adapt to the impacts of extreme weather events.
Also, the COP29 Presidency in collaboration with the International Energy Agency introduced several flagship initiatives – the Global Energy Storage and Grids Pledge, the Green Energy Zones and Corridors Pledge and the Hydrogen Declaration – that accelerate the global clean energy transition,.
Each year, there are also collaborations on the sidelines of the COP meetings that are often looked over. For example, this year too, twenty-five countries at COP29 in conjunction with the European Union announced a pledge to refrain from building new coal-fired power plants and called on other global nations to follow suit. New public private partnerships thrive when business leaders, government representatives, and international organisations find themselves under the same roof.
Going into COP29, the geo-political context was indeed abysmally bleak. Yet in the rooms I was at, the mood in this year’s more ‘compact COP’ has been one of positive momentum. The pace of real progress in many countries has been slow even though countries such as the UK’s renewed climate leadership under Ed Miliband, is refreshing.
It has been 29 years since countries have been coming together to shape a new definition of growth and progress – one which is ambitious as well as responsible. However, the aim is not to keep meeting each year. Instead, we can aim for one last ‘compact COP’ meeting – not trade fairs in disguise – that is inclusive of all the voices that matter for countries to deliver the detailed plans that we have together created for a prosperous and responsible future.
About the Author: Dr. Miniya Chatterji is the CEO at Sustain Labs Paris
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