The UN Climate Change Conference (COP29), held in Baku, Azerbaijan, concluded with a landmark agreement to triple climate finance to $300 billion annually by 2035.
This funding is aimed at protecting vulnerable economies and populations from climate disasters while fostering equitable participation in the global clean energy transition.
The agreement, known as the New Collective Quantified Goal on Climate Finance (NCQG), emerged after two weeks of intensive negotiations involving nearly 200 nations. Despite its ambitious scope, the deal faced criticism from Bangladesh and other countries for inadequately addressing the needs of the most vulnerable states.
A Financial Lifeline with Conditions
UN Climate Change Executive Secretary Simon Stiell described the agreement as “an insurance policy for humanity,” emphasizing its importance in mitigating worsening climate impacts. However, he warned that success hinges on full and timely payments. “Promises must be kept to protect billions of lives,” Stiell asserted.
The finance package builds on past achievements, including the Loss and Damage Fund established at COP27 and commitments at COP28 to phase out fossil fuels, triple renewable energy, and enhance climate resilience.
Breakthroughs in Carbon Markets and Adaptation
COP29 delivered significant progress on carbon markets under Articles 6.2 and 6.4 of the Paris Agreement. These agreements establish mechanisms for country-to-country carbon trading and create a centralized carbon crediting market, benefiting developing nations with new financial flows and capacity-building support.
Adaptation also took center stage, with measures to bolster National Adaptation Plans (NAPs) for Least Developed Countries (LDCs) and initiatives to amplify Indigenous and local community voices through the newly adopted Baku Workplan.
Challenges and Calls for Action
Stiell acknowledged that the agreement fell short of satisfying all stakeholders. “No country got everything they wanted, and we leave Baku with a mountain of work to do,” he said, urging global leaders to intensify efforts ahead of COP30 in Belem, Brazil.
UN Secretary-General António Guterres echoed this sentiment, describing 2024 as a critical year for climate action. He called for robust, economy-wide Nationally Determined Contributions (NDCs) aligned with the 1.5°C warming limit and urged G20 nations to lead in phasing out fossil fuels and embracing clean energy.
Bangladesh’s Disappointment
Bangladesh’s Ministry of Environment, Forest, and Climate Change Advisor Syeda Rizwana Hasan expressed strong dissatisfaction with the NCQG draft. Calling the proposed allocation “shockingly insufficient,” she highlighted the absence of grants and dedicated funds for the 45 most vulnerable LDCs and Small Island Developing States (SIDS).
“This package provides no meaningful solutions for LDCs and SIDS, leaving them increasingly vulnerable to escalating climate risks,” the adviser stated. She urged these nations to reject the proposal and push for a more equitable and actionable climate finance framework.
Looking Ahead
As nations prepare for COP30, a renewed focus on delivering stronger climate commitments and addressing equity gaps will be essential. While COP29 marked progress in areas like finance and adaptation, achieving the goals of the Paris Agreement requires sustained global cooperation and more ambitious action.
