With new climate forecast data predicting 2024 to be the hottest year on record, increased extreme weather expected to cost billions in damages, and a complex geopolitical context, this yearâs COP29, the 2024 United Nations Climate Change Conference, highlighted the urgent need for climate action. Finance emerged as the key focus, particularly mobilizing and allocating funds for the necessary work to address climate change and mitigate its effects. Key negotiations aimed to set a new global climate finance target, strengthen nationally determined contributions, make significant strides in adaptation and loss and damage efforts, and advance progress on the COP28 energy pledges.
At the conference held in Baku, Azerbaijan from November 11-22, an agreement was reached to provide at least $300 billion annually by 2035. This figure fell short of the $1.3 trillion that many developing nations requested. The deal was met with mixed reactions. Some countries expressed disappointment over the insufficient funding, while others viewed it as a positive step forward. In addition, there were discussions on other crucial topics including phasing out fossil fuels and the implementation of carbon pricing mechanisms. Overall, COP29 highlighted the ongoing challenges in global climate cooperation and the urgent need for increased financial support for vulnerable nations.
Key Achievements
- First Biennial Transparency Reports (BTRs): Countries submitted their first BTRs under the Paris Agreement. This marked a significant step toward increased transparency and accountability in climate action. Parties to the Paris Agreement are required to submit biennial transparency reports (BTR) every 2 years, with the first submission due by December 31, 2024. BTRs include information on national inventory reports (NIRs), progress toward nationally determined contributions (NDCs), policies and measures, climate change impacts and adaptation, levels of financial, technology development and transfer and capacity-building support, capacity-building needs, and areas of improvement.
- Baku Workplan: This plan aims to elevate the voices of indigenous peoples and local communities in climate action, recognizing their crucial role in climate solutions. The Baku Workplan focuses on three key areas: promoting knowledge exchange, building capacity for engagement, and incorporating diverse values and knowledge systems into climate policies and actions.
- Global Methane Pledge Ministerial: This event highlighted progress in reducing methane emissions, with new countries joining the pledge and increased funding commitments. The Global Methane Pledge (GMP) was launched at COP26 by the European Union and the United States, which have since been joined by many countries.â¯In March 2024, GMP counted 158 participants. Since its launch, the GMP has generated unprecedented momentum for methane mitigation, with major work underway in six action areas including: the Energy Pathway, the Waste Pathway, the Food and Agriculture Pathway, Methane Plans and Policies, Data for Methane Action, and Finance for Methane Abatement.
Key Challenges
- Climate finance: While there was progress on climate finance, there are significant disagreements that remain between developed and developing countries on the scale and nature of financial support. The deal has been sharply criticized by developing nations as insufficient to address the scale of the climate crisis. The key outcome was an agreement to increase annual climate finance for developing countries from $100 billion to at least $300 billion by 2035. While this represents a significant step forward, it still falls short of the $1.3 trillion per year that developing countries say is necessary to address the climate crisis.
- Fossil Fuel phase-out: Negotiations on phasing out fossil fuels were contentious, with some countries advocating for a more ambitious approach than others. The final agreement at COP29 did not strengthen the commitment to phase out fossil fuels made at COP28. The conference primarily focused on issues like adaptation to climate change and climate finance for developing countries. In addition, many climate activists and organizations expressed disappointment with the lack of ambition and urgency in addressing the fossil fuel crisis. As a result, the lack of progress on phasing out fossil fuels could lead to further climate change and its associated risks.
- Loss and Damage Fund: The operationalization of the Loss and Damage Fund, established at COP28, is still under discussion, with disagreements on how to allocate funds and who should contribute. The fund will provide financial support to countries facing loss and damage from climate change, including extreme weather events and slow-onset processes like sea-level rise. The World Bank has been designated as the fund’s financial intermediary and will host the secretariat. The fund has received pledges exceeding $730 million, and it is expected to start financing projects in 2025. COP29 was marked by intense negotiations including divisions between developed and developing nations.
COP30 Expectations
COP30 in Belém, Brazil, will build on the progress and unresolved issues from COP29 in Baku. Brazil, representing emerging markets and developing economies, will set the tone for climate ambition, with the next round of nationally determined contributions due by mid-February. The COP31 host for 2026 may also be decided, with Australia and Turkey being leading contenders.
