December 2024
COP29 Insights
After the successful COP28 summit in Dubai, UAE, the baton was passed to Baku for COP29, held in November 2024. Dubbed “The Finance COP,” the event focused on scaling up climate finance—financial resources aimed at helping lower-income countries transition to zero-carbon economies and enabling vulnerable communities to adapt to the impacts of climate change. A key outcome of COP29 was the establishment of a new framework to increase climate funding and set ambitious targets for future financial commitments.
The urgency of these discussions was underscored by the stark realities of climate change in 2024, which became the hottest year ever recorded. Around the globe, extreme weather events—including floods, hurricanes, droughts, and other climate-induced disasters—displaced millions of people. Indigenous Peoples and communities deeply reliant on natural ecosystems bore the brunt of these impacts, highlighting the need for equitable and sustainable solutions.
During the final hours of negotiations, intense advocacy by the most vulnerable developing countries led to a breakthrough. Delegates agreed to establish a target of at least $300 billion per year by 2035, dedicated to supporting developing nations in advancing their climate action efforts. This milestone reflects a significant step toward addressing the pressing needs of countries disproportionately affected by climate change.
KEY NEGOTIATION AREAS INCLUDED:
CLIMATE FINANCIAL ARCHITECTURE: Discussions focused on shaping the next collective quantified goal (NCQG) for climate finance, aimed at addressing disparities in funding for climate adaptation and mitigation.
CARBON MARKETS: Delegates negotiated the rulebook for international compliance carbon markets, refining frameworks for transparent and accountable carbon credit trading under Article 6 of the Paris Agreement.
MITIGATION AMBITION: Building on the “UAE Consensus” from COP28, countries explored pathways to enhance global energy transition goals, emphasizing commitments to reduce fossil fuel reliance and bolster renewable energy initiatives.
NEW INITIATIVES ANNOUNCED AT COP29
GLOBAL ALLIANCE OF RELIGIOUS WOMEN LEADERS FOR CLIMATE ACTION
Launched at the Faith Pavilion in Baku, Azerbaijan.
Focus: Mobilizing religious women leaders across faiths to combat climate change.
WGEO-UNDP PARTNERSHIP
Collaboration to accelerate the transition to a global green economy.
Focus areas include carbon markets, Climate adaptation and mitigation, Integrated land and water management, Transparency and NDC implementation under the Paris Agreement.
WORLD’S FIRST CHATGPT TOOL FOR AGRICULTURE
Announced by the UAE to support the agricultural community.
Aim: Enhance innovation, collaboration, and data-driven solutions for decarbonization.
GLOBAL ENERGY EFFICIENCY ALLIANCE
Initiative by the UAE to double global energy efficiency rates by 2030.
GOALS:
- Reduce emissions.
- Minimize natural resource consumption.
- Build on the UAE Consensus from COP28.
NET-ZERO EXPORT CREDIT AGENCIES ALLIANCE (NZECA) TARGET-SETTING PROTOCOL
OBJECTIVE: Provides guidance for Export Credit Agencies (ECAs) and Export-Import Banks (ExIm) to set:
- Long-term and intermediate science-based climate targets.
- Transparent and aligned disclosures.
PURPUSE: Supports members in fulfilling their net-zero commitments and advancing global climate action.
KEY ANNOUNCEMENTS AT COP29
BAKU FINANCE GOAL (BFG)
Commitment to channel $1.3 trillion annually in climate finance to developing countries.
Represents a significant increase from the previous goal of $100 billion.
Aims to unlock a wave of global investment in climate action.
LOSS AND DAMAGE FUND OPERATIONALIZED
Established during COP27 and launched at COP28.
Now fully operational, with pledged financial support exceeding $730 million.
Provides assistance to countries most vulnerable to climate change impacts.
BAKU DECLARATION ON WATER FOR CLIMATE ACTION
Signed by nearly 50 countries and endorsed by non-state actors such as WWF, Water.org, and Stockholm International Water Institute.
Focuses on the critical role of water in climate resilience and action.
NEW COLLECTIVE QUANTIFIED GOAL ON CLIMATE FINANCE (NCQG)
Agreement to triple public finance for developing countries to $300 billion annually by 2035.
Includes scaling up total finance—public and private—to $1.3 trillion annually by 2035.
Resulted from unanimous agreement after extensive negotiations.
TOURISM AND CLIMATE CHANGE
Tourism discussed at a COP for the first time as both a contributor to and victim of climate change.
Marks a milestone in addressing the sector’s impact and potential for climate adaptation and mitigation.
KEY OUTCOMES INCLUDED:
CLIMATE FINANCE COMMITMENTS:
A new financial goal of $300 billion by 2035 was set for climate adaptation, marking a tripling from earlier targets. Additionally, there was an aspirational goal to mobilize $1.3 trillion by 2035. However, concerns remain about the mechanisms for achieving these goals, as clarity on funding sources is still lacking.
CARBON MARKET BREAKTHROUGHS:
A decade-long negotiation culminated in establishing high-integrity, government-backed international carbon markets. This system aims to reduce the cost of decarbonization and incentivize countries to enhance their commitments to the Paris Agreement.
GENDER EQUALITY CHALLENGES:
Efforts to integrate gender considerations into climate policy faced resistance, with certain countries opposing references to intersectionality and human rights. Despite this, limited language supporting gender inclusivity was retained, emphasizing the need for greater participation of women and marginalized groups in climate action.
NET-ZERO COMMITMENTS:
New protocols, such as the Net-Zero Export Credit Agencies Alliance (NZECA), were launched to align trade finance with decarbonization goals. This initiative provides a roadmap for setting climate targets in industries critical to global trade, reflecting UNEP FI’s leadership in integrating climate objectives with economic activities.
INSURANCE SECTOR TRANSITION PLANS: The inaugural report from the Forum for Insurance Transition to Net Zero highlighted the role of insurers in supporting credible decarbonization strategies across their portfolios.
UAE'S KEY CONTRIBUTIONS AND INITIATIVES AT COP29
MANGROVE ALLIANCE FOR CLIMATE (MAC) STRATEGY 2031
ANNOUNCEMENT: Unveiled by HE Dr. Amna bint Abdullah Al Dahak, UAE Minister of Climate Change and Environment.
FOCUS:
- Global mangrove restoration and protection efforts.
- Highlighting mangroves’ role in climate mitigation, adaptation, and marine biodiversity.
- Collaboration: Co-chaired by the UAE and Indonesia with participation from MAC member countries.
UN 2026 WATER CONFERENCE PREPARATION
LEADERSHIP: HE Abdulla Balalaa, Assistant Minister of Foreign Affairs for Energy and Sustainability, represented the UAE.
KEY ACTIVITIES:
- Preview session at COP29’s Food, Agriculture, and Water Day at the UAE Pavilion.
- Emphasis on cross-sectoral approaches to water challenges and aligning with Rio conventions.
- Roundtable with private sector, philanthropies, and NGOs on water investment.
VISION: Ambitious solutions for Sustainable Development Goal 6 (Clean Water and Sanitation).
MASDAR’S RENEWABLE ENERGY PROJECTS
GW WINDFARM IN KAZAKHSTAN:
Investment Agreement signed with the Kazakh government.
Witnessed by high-level officials including UAE and Kazakhstan representatives.
PARTNERSHIP WITH SILK ROAD FUND:
Memorandum of Understanding signed to co-invest in renewable energy projects.
Focus on Belt and Road Initiative countries with a $2.8 billion planned investment by Silk Road Fund.
WHAT TO LOOK FORWARD TO IN COP30
COP30, scheduled to take place in 2025 in Belém, Brazil, promises to bring global attention to the Amazon, emphasizing its critical role in addressing climate change. This event is expected to push forward the climate justice agenda and drive actionable outcomes on several fronts:
HIGHLIGHTING CLIMATE JUSTICE: Belém, located in the heart of the Amazon, symbolizes the need to prioritize vulnerable populations most impacted by climate change. The conference will underscore fairness and equity in global climate policies and adaptation strategies.
AMAZON AND BIODIVERSITY: COP30 will focus on protecting vital ecosystems like the Amazon rainforest. It presents an opportunity for Brazil to showcase its efforts in reducing deforestation, transitioning to sustainable agriculture, and promoting renewable energy. The conference will aim to reinforce the importance of biodiversity as a cornerstone of global climate resilience.
SUPPORT FOR FRONTLINE COMMUNITIES: With over half of Belém’s population living in vulnerable conditions, COP30 will seek to address the challenges faced by these communities. Initiatives will likely include advancing sustainable infrastructure, nature-based solutions, and inclusive public policies tailored to frontline populations.
STRENGTHENING GLOBAL COLLABORATION: Brazil will leverage COP30 to advocate for increased climate financing, technological support, and knowledge exchange from developed nations. The focus will be on ensuring that resources reach grassroots communities and align with just transition principles.
SHOWCASING BRAZIL’S PROGRESS: Under President Lula’s leadership, Brazil has made strides in climate action, including reducing Amazon deforestation by 30%. COP30 will highlight these efforts as part of Brazil’s broader ambition to become a global leader in sustainable development.
LOOKING AHEAD
Hopes were high that COP29 would act as a catalyst for countries to significantly raise the ambition of their next Nationally Determined Contributions (NDCs) ahead of the 2025 submission deadline. The conference emphasized the urgency of enhanced global collaboration. However, while there was strong recognition of the need for higher ambition, concrete progress on this front was limited.
Similarly, further clarification on the landmark COP28 agreement in Dubai—to triple global renewable energy capacity and double the average global annual rate of energy efficiency improvement by 2030—remains a key area for future collaboration and action to accelerate the transition away from fossil fuels.
Upcoming meetings, including COP30, will address unresolved issues like adaptation goals, enhanced climate finance, and clearer mechanisms for fossil fuel transition.
Overall, COP29 made incremental progress but underscored the complexities of achieving global climate targets amidst diverse political and economic interests.
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