The 29th Conference of the Parties (COP29) will close in just a few days, on November 22, 2024. It arrives at a critical moment for global climate action. Building on the momentum of previous conferences and the G20 Summit, which ended yesterday, COP29 will tackle major issues such as climate finance, adaptation strategies, carbon markets, and the implementation of updated climate commitments. However, the expected renewed withdrawal of the USA from the Paris Agreement and a weakened presence of the European Union in Baku, Azerbaijan, cast a shadow over the climate conference.
The outcomes of COP29 will shape the global response to climate change in the years ahead, underscoring its significance for policymakers, businesses, and civil society.
Strengthening National Climate Commitments
One of the primary focuses of COP29 will be to enhance climate commitments, known as Nationally Determined Contributions (NDCs). These pledges are integral to achieving the goals of the Paris Agreement, aiming to limit global temperature rise to 1.5°C. Given the urgency of meeting emissions reduction targets by 2030, countries are expected to present updated and more ambitious NDCs at the summit. The NDCs to be submitted in 2025, also known as NDCs 3.0, will be pivotal in ensuring a credible pathway to net-zero emissions by mid-century.
Bridging the Climate Finance Gap
A recurring theme at COP29 will be the need to close the significant finance gap hindering climate action. Despite existing pledges, the current levels of funding are insufficient to meet the needs of both mitigation and adaptation efforts, especially in vulnerable countries. The New Collective Quantified Goal (NCQG) on climate finance is expected to be a major point of negotiation, aiming to establish a more ambitious and inclusive financial framework beyond the current $100 billion annual target. Enhanced transparency and accountability in climate finance, alongside innovative funding mechanisms such as green bonds, will be critical for building trust and mobilizing the necessary resources.
Addressing Loss and Damage: Financial Mechanisms for Vulnerable Nations
COP29 will continue the discussions initiated at COP28 regarding the operationalization of the Loss and Damage Fund, aimed at compensating developing countries that are disproportionately affected by climate disasters. A key challenge for the summit will be securing substantial financial commitments from developed nations. This is vital, as vulnerable countries may face as much as $580 billion in climate-related damages by 2030. The effective mobilization of resources for this fund will put international solidarity and the principle of climate justice to the test.
Unleashing the Potential of Carbon Markets: Article 6
Article 6 of the Paris Agreement is one of the most complex and controversial elements on the agenda at COP29. It deals with the establishment of international carbon markets, allowing countries to trade carbon credits as part of their climate action strategies. These markets have the potential to significantly reduce global emissions by directing investments into projects that lower emissions, including initiatives for carbon capture and renewable energy. However, critical issues remain unresolved, including the criteria for what constitutes a credible carbon credit and the mechanisms for validating and trading these credits. COP29 represents a pivotal opportunity to finalize the rules for Article 6, particularly in terms of the Paris Agreement Crediting Mechanism (PACM), which aims to ensure high-integrity, transparent trading of carbon credits.
Innovations in Sustainable Development: Food Systems and Circular Economy
As part of the broader sustainability agenda, COP29 will address the urgent need to transform global food systems and implement circular economy principles. The shift towards sustainable agriculture is crucial for reducing greenhouse gas emissions, with initiatives to enhance food security while minimizing environmental impacts. This includes empowering farmers with knowledge and technology to adapt to climate-smart practices. Additionally, promoting a circular economy is expected to be a focal point, encouraging the reduction, reuse, and recycling of resources across various sectors, from fashion to plastics to electronics. Such strategies are essential for reducing waste, cutting emissions, and fostering sustainable economic growth.
The Role of Innovation and Technology
Technological advancements will be instrumental in achieving the ambitious targets set by global climate agreements. COP29 will likely highlight the importance of investing in clean energy technologies, such as advanced solar and wind energy systems or hydrogen power. Discussions will also include pathways for accelerating the transition to renewable energy and improving energy efficiency. By supporting innovation, the conference aims to facilitate a just transition to a low-carbon economy, ensuring that no community is left behind.
Climate and Biodiversity: Two Sides of the Same Coin
In recent years, the environmental community has increasingly recognized the interconnectedness of climate change and biodiversity loss. The destruction of ecosystems, deforestation, and habitat degradation diminish biodiversity and undermine climate resilience. The loss of species disrupts natural carbon sinks and weakens ecosystems’ ability to adapt to changing climatic conditions. COP29 presents an opportunity to create a more integrated framework that reflects the essential link between these two crises. This connection is especially relevant considering the outcomes of the 16th Conference of the Parties to the Convention on Biological Diversity (CBD) COP16 held in Cali, Colombia, from October 20 to November 1, 2024. COP29 could serve as a platform to further align the Paris Agreement’s climate targets with the global biodiversity goals, ensuring that actions on climate change support biodiversity outcomes and that biodiversity conservation efforts also contribute to mitigating climate change.
Conclusion
COP29 in Baku stands as a crucial platform for advancing global climate solutions at a time of heightened urgency. The key areas of focus, from enhancing NDCs and addressing loss and damage to scaling up carbon markets, closing the finance gap, and further aligning climate targets with global biodiversity goals, highlight the comprehensive approach needed to tackle the climate crisis. By fostering international cooperation and integrating innovative strategies, the conference needs to set a new precedent for effective and equitable climate action. The decisions made at COP29 will be consequential in shaping the trajectory of global climate policy, making it a pivotal event for charting a sustainable future.
Alexander Bonde is the Secretary General of Deutsche Bundesstiftung Umwelt (DBU) – German Federal Environmental Foundation.
Featured image: COP29 in Baku, Azerbaijan, Official COP29 Photo Album