The Conference of the Parties (COP) 29 climate summit took place in Baku, Azerbaijan over two weeks in November, with government and energy representatives from all over the world attending. The annual meeting centers around the United Nations Framework Convention on Climate Change (UNFCCC) – an agreement between 198 Parties (197 States and the EU), and the delegates from the main decision-making body of the UNFCCC. During the conference, members negotiate new measures and review progress against the overarching UNFCCC goal of limiting climate change.
COP29 Azerbaijan
Choosing Azerbaijan, one of the world’s oldest oil powers, as host to COP29, was seen by many environmentalists as controversial, particularly following the UAE’s leadership last year. Azerbaijan’s president, Ilham Aliyev, even described oil and gas as a “gift from God”, which added fuel to the fire.
However, others believe that including major fossil fuel powers in discussions around climate change is key to tackling it. In addition to hundreds of government, renewable energy, and environmental group representatives, at least 1,773 coal, oil, and gas lobbyists attended the event, making for a diverse group of delegates.
There were Several Key Takeaways from COP29
No Emphasis on a Transition Away from Fossil Fuels
Member states failed to agree on binding commitments to transition away from fossil fuels at COP29. In addition, no comprehensive plan was established for a joined-up effort to translate efficiency targets into policy and action.
Many energy and industry sector representatives around the world have critiqued the COP summits for failing to establish clear standards and guidelines to drive forward decarbonization targets at the state level.
The deployment of successful sector-level plans and national policy depends heavily on the creation of international-level frameworks and expectations, which would require a joined-up approach from member states.
Tripling Finance to Developing Countries
During the conference, UNFCCC member states agreed to triple finance to developing countries, from the previous goal of $100 billion annually to $300 billion annually by 2035. They also agreed to secure efforts of all actors to scale up finance to developing countries from public and private sources to $1.3 trillion a year by 2035.
This move followed years of pressure from both the leaders of low-income countries and environmental groups to increase funding to support a green transition and mitigate the effects of climate change in some of the areas of the world that are most affected.
Although new funding targets were established, no mechanisms for scaling and disbursing funds were established.
“This new finance goal is an insurance policy for humanity, amid worsening climate impacts hitting every country,” said Simon Stiell, Executive Secretary of UN Climate Change. “But like any insurance policy – it only works – if premiums are paid in full, and on time. Promises must be kept, to protect billions of lives.” Stiell added, “It will keep the clean energy boom growing, helping all countries to share in its huge benefits: more jobs, stronger growth, cheaper and cleaner energy for all.”
Better Carbon Market Planning Established
During COP29, greater clarification was established on how countries will authorize carbon credit transactions and manage tracking registries, under the Paris Agreement Carbon Crediting Mechanism, Article 6.2. The article now includes mandatory safeguards to protect the environment and human rights, requiring informed consent from indigenous communities for any project to move forward. The supervisory body responsible for overseeing the mechanism has a comprehensive action plan for 2025.
This move is expected to support the creation of functional carbon markets, which support global decarbonization efforts. This follows significant critique of the existing carbon market structure and its failure to effectively support decarbonization efforts in recent years.
The Question of Who Will Become the Climate Leader
Following the recent election of Donald Trump as the next president of the U.S., many are questioning the role of the North American climate leader in future COP summits, particularly if the U.S. leaves the Paris Agreement once again. This has shifted attention to China, a renewable energy and critical minerals powerhouse. The Asian giant remains the world’s biggest carbon emitter, although it has pledged to achieve net-zero CO2 emissions by 2060.
China is still considered a ‘developing country’ under the UN framework, meaning that it does not need to adhere to greenhouse gas emissions reductions and climate funding agreements. However, it has voluntarily agreed to the finance deal formula to provide funding to vulnerable countries alongside other member states.
Li Shuo, from the Asia Society Policy Institute, stated, “China is becoming more transparent about its financial support to global south countries… This should propel the country to play a larger role in the future.”
Greater Pressure from Environmentalists
The inclusion of so many oil and gas lobbyists at COP29 ruffled the feathers of many environmental groups, leading them to take a more vocal stance at the recent climate summit. Several NGOs spoke in support of developing countries, which do not have as much power and representation as high-income countries and major energy companies. Meanwhile, thousands more activists took to the streets to call for change at COP29.
Several uncertainties remain following the recent climate summit. The lack of decision over a transition away from fossil fuels angered many environmental groups and undermined the International Energy Agency’s warning that without a move away from oil, gas and coal we will not achieve the Paris Agreement climate targets. As we plan towards COP30, member states, as well as energy and environmental group representatives, will likely be calling for more decisive action at the international level, which can be effectively translated into national policy and local action.
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