AZERBAIJAN – The UN Climate Change Conference (COP29) in Baku concluded with adopting an ambitious global finance target of US$300 billion annually by 2035 to support developing nations in combating climate change.
The agreement, dubbed the New Collective Quantified Goal on Climate Finance (NCQG), significantly enhances the prior commitment of US$100 billion per year by 2020.
It aims to generate US$1.3 trillion annually by 2035, with funding sourced from both the public and private sectors. Economists highlight this figure as critical to effectively addressing global warming.
UN Climate Change Executive Secretary Simon Stiell described the finance goal as “an insurance policy for humanity” in the face of escalating climate impacts.
“Promises must be kept to protect billions of lives. It will keep the clean energy boom growing, delivering more jobs, stronger growth, and cleaner energy for all,” he stated.
Key outcomes of COP29
Building on progress from COP27 and COP28, COP29 delivered several major milestones:
Loss and Damage Fund: Continued emphasis on compensating vulnerable nations for climate-induced damages.
Global Shift from Fossil Fuels: Reaffirmation of commitments to transition toward renewable energy sources.
Breakthrough in Carbon Markets: An agreement to streamline and enhance global carbon markets for quicker and cost-effective emissions reductions.
Improved Climate Reporting and Adaptation: New standards for transparency and a renewed focus on adaptation efforts.
Mixed reactions to the finance agreement
Despite its ambition, the NCQG faced criticism, particularly from developing nations, which viewed the measures as insufficient. Indian delegation representative Chandni Raina stated, “This document is an optical illusion. It does not address the enormity of the challenge we face.”
Concerns were also raised about the historical failure of developed nations to fully deliver on previous financial promises, casting doubt on the feasibility of meeting the new targets.
Coinciding with the finance agreement, countries are preparing to submit enhanced Nationally Determined Contributions (NDCs).
These strengthened climate plans aim to address all greenhouse gas emissions and ensure alignment with the 1.5°C warming limit.
Notable commitments include upcoming NDC updates from the UK and Brazil, both G20 nations, which are expected to align their economic strategies with more robust climate action.
While COP29 has set an ambitious vision, Simon Stiell emphasized the urgency of action, “The success of this goal hinges on timely and full delivery of commitments. We cannot afford delays in protecting billions of lives and our shared future.”
As the global community moves forward, COP29’s outcomes will serve as a foundation for accelerating climate action, though much work remains to be done in addressing gaps and fostering greater cooperation.
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