COP29 concludes with a big pledge

The COP29 UN Climate Conference concluded in Baku, the capital of Azerbaijan, on Sunday with an agreement to triple climate finance for developing countries to $300bn annually by 2035. This finance boost is part of the New Collective Quantified Goal on Climate Finance (NCQG) aimed at helping vulnerable nations combat climate disasters and participate in the global clean energy boom.

In addition to public finance, the agreement commits to mobilizing $1.3trn annually by 2035 from both public and private sources.

UN Secretary-General António Guterres acknowledged the significance of the agreement, stressing that it was essential to keeping the 1.5-degree climate target alive. While expressing a desire for more ambitious commitments, he highlighted that the agreement provides a foundation for future progress, stressing the need for swift action and timely implementation of financial commitments.

“The promises must quickly become cash,” Guterres urged, calling on countries to ensure the upper end of the new financial goal is met. He also praised the progress made in emissions reductions, the energy transition and carbon market agreements, despite the challenging geopolitical landscape.

Simon Stiell, executive secretary of UN Climate Change, described the agreement as “an insurance policy for humanity.” He emphasized that the success of this policy depends on timely fulfillment of financial commitments, which are essential to safeguard billions of lives and drive the global clean energy transition.  

“The agreement will keep the clean energy boom growing, ensuring all countries share its benefits: more jobs, stronger growth and cleaner, cheaper energy,” Stiell said in the COP29 closing plenary. “At COP28, the world agreed to triple renewables. At COP29, we tripled climate finance and countries will work to mobilize much, much more. At COP28, the world agreed to boost climate resilience. COP29 will help finance real protections for those on the frontlines, especially the most vulnerable.”

“The $300bn per year deal negotiated in Baku is weak, shortsighted and wholly inadequate to address the mounting threats of the climate crisis, and fails to protect the millions of lives on the line”, said Jess Beagley, policy lead at the Global Climate and Health Alliance, a consortium of more than 200 health professional and health civil society organizations from around the world.

The International Energy Agency estimates that global clean energy investments will exceed $2trn in 2024. This builds on strides made at COP27, which established a Loss and Damage Fund, and COP28, which committed to phasing out fossil fuels, tripling renewable energy and enhancing climate resilience.

For the first time, COP29 achieved consensus on carbon markets under Article 6 of the Paris Agreement. This agreement provides clarity on country-to-country carbon credit trading and operationalizes a centralized carbon market under the UN. Developing nations are expected to benefit from increased financial flows, while least developed countries will receive capacity-building support to participate.

The Paris Agreement Crediting Mechanism includes safeguards to ensure projects meet environmental and human rights standards, require Indigenous Peoples’ consent and provide avenues for appeals. The mechanism aligns with scientific guidance to maximize environmental integrity.  

COP29 made significant strides in transparent climate reporting, a cornerstone for strengthening climate policies. Thirteen countries, including Azerbaijan, the EU and Japan, submitted their Biennial Transparency Reports (BTRs), setting a benchmark for others. The Enhanced Transparency Framework (ETF) reporting tools and technical training supported these efforts.

A total of 42 events under the #Together4Transparency initiative showcased the importance of transparency in preparing Nationally Determined Contributions (NDCs) and identifying funding opportunities.

Adaptation was a central theme at COP29. Agreements included the launch of the Baku Adaptation Roadmap, provisions for National Adaptation Plans (NAPs) in least developed countries and commitments to expedite their implementation by 2025. A high-level dialogue brought together ministers, donors and financial experts to accelerate climate adaptation efforts.

The global goal on adaptation was advanced with plans to continue work on indicators ahead of COP30. The renewed emphasis on transformational adaptation highlights the urgency of addressing the needs of the most vulnerable populations.

The Baku Work Plan renewed the mandate of the Local Communities and Indigenous Peoples Platform (LCIPP) to amplify their voices in climate action. This decision underscores their leadership in addressing the climate crisis and fostering collaboration among stakeholders.

Countries extended the enhanced Lima Work Program on Gender and Climate Change for another decade and agreed to develop a new Gender Action Plan by COP30. The conference also emphasized the role of youth, with children as young as ten participating as moderators and speakers, showcasing a commitment to intergenerational collaboration.

While COP29 marked significant progress, Stiell acknowledged that it fell short of meeting all expectations. He urged nations to focus on unresolved issues in the lead-up to COP30 in Belem, Brazil. “We leave Baku with a mountain of work to do,” Stiell said. “The UN Paris Agreement is humanity’s life-raft. It’s our collective responsibility to keep moving forward.”

In his closing statement, Guterres reflected on a year marked by extreme weather events and rising emissions. He emphasized the urgency of addressing climate finance, particularly for developing nations grappling with debt, disasters and exclusion from the renewable energy revolution.

Looking ahead, Guterres called for countries to deliver enhanced climate action plans, with G20 nations leading the way in reducing emissions and accelerating the fossil fuel phase-out. He also called for swift action on debt, concessional finance, and the recapitalization of Multilateral Development Banks to support developing countries.

As for Nepal’s participation, President Ramchandra Paudel addressed the World Leaders Climate Action Summit and also addressed a high-level session organized by Kyrgyzstan on ‘Advancing Mountain Agenda’. Nepal also hosted a high-level session titled “Addressing Climate-Induced Loss and Damage in Mountainous Regions,” and unveiled two projects—Managing Watersheds for Enhanced Resilience of Communities to Climate Change in Nepal (MaWRiN) and Building National Capacities of Nepal to Meet Requirements of the Enhanced Transparency Framework of the Paris Agreement (CBIT)—funded by the Global Environment Facility (GEF).

In his summit address, President Paudel urged that vast resources currently allocated for arms be redirected toward adaptation and mitigation to safeguard humanity and ensure a habitable planet for future generations. “Not only have pledges for climate funding been insufficient from the outset, but the funds remain largely unmet,” he noted, pointing out that complicated procedures prevent targeted communities from accessing these funds. He called for immediate implementation of the “polluter pays and compensates” principle.