After an intense 13 days of negotiations in Baku, COP29 concluded on November 24th, marking a pivotal moment for the global climate agenda. From ambitious commitments to breakthrough agreements, the summit laid the groundwork for meaningful climate action while highlighting persistent challenges.
Climate Finance: The spotlight of COP29
Labelled the “Finance COP,” this year’s summit placed climate finance at the forefront. A New Collective Quantified Goal (NCQG) of only $300 billion by 2035 was actually committed, with a looser target of $1.3 trillion through a combination of public and private finance as a step toward the overall $2.4 trillion needed (LSE). Key pledges included:
- $120 billion a year from Multilateral Development Banks by 2030. (Reuters)
- Proposed Global Solidarity Levies on aviation and shipping to raise $350 billion annually. (GSLTF)
- £11.6 billion in carbon finance in the UK by 2026. (GOV UK)
- Proposed $24 billion redirected globally from defence to reforestation projects. (El Pais)
These commitments reflect growing recognition of the urgency for collective action, though the funding gap remains significant.
Ambitious NDCs and SME support
Updated Nationally Determined Contributions (NDCs) fell short of expectations, but with the UK standing out as a leader:
- UK: 81% emissions reduction by 2035 (below 1990 levels).
- Brazil: 67% by 2035 (below 2005 levels).
- UAE: 47% by 2035 (below 2019 levels).
- Switzerland: 50% by 2030 (below1990 levels).
The International Trade Centre endorsed prioritising SME financing within NDCs, acknowledging that SMEs make up 99% of the global economy (ITC). Supporting their green transitions will amplify global impact.
UN Secretary-General António Guterres emphasised the stakes, warning that “2024 was a masterclass in climate destruction” (UN News). As global emissions rose by 2%, this stark reminder highlights the critical importance of bold national commitments like these NDCs (Carbon Brief).
Article 6: Progress amid challenges
On day one of COP29, a breakthrough was achieved on Article 6.4 and later in the negotiations, Article 6.2. These updates introduced new methodologies for carbon credits and greater transparency. Whilst according to new research fewer than 16% of issued credits currently deliver real emissions reductions, these agreements set the stage for improved accountability and effectiveness (Nature Communications).
Controversies and political context
COP29 faced criticism for being hosted in Azerbaijan, a petrostate, with over 1,700 fossil fuel lobbyists in attendance (Global Witness). This, as well as the heavy restrictions on protests, fuelled growing calls for reform of COP itself.
Meanwhile, the US elections added uncertainty. The return of Donald Trump in January 2025 could reverse progress on federal climate policies. However, as Carbon Brief noted, “progress can and must happen at all levels: cities, states, businesses, organisations, and more” (Carbon Brief)
Looking ahead
COP29 delivered some wins while exposing areas for further action. As we approach COP30, turning these commitments into measurable outcomes is vital. The progress made at COP29 reminds us that, despite challenges, meaningful change is within reach.
