The 2024 United Nations Climate Change Conference, i.e., the 29th Conference of Parties (COP29) to the UN Framework Convention on Climate Change (UNFCCC) was held in Baku, Azerbaijan, between November 11 and 24, 2024. The summit highlighted the urgent need for mobilisation of substantial financial resources in order to effectively address climate change, particularly in emerging markets and developing economies. The International Energy Agency has projected that global clean energy investment would surpass US$ 2 trillion for the first time in 2024.
The new finance goal established at the COP29 has been built on global key progress that has been made at previous COPs. COP27 saw the creation of the historic Loss and Damage Fund, while COP28 resulted in a global agreement to rapidly and fairly transition away from fossil fuels, triple renewable energy, and strengthening climate resilience.
The 2025 UN Climate Change Conference, i.e., COP30 will be convened at Belem, Brazil.
The COP serves as the supreme decision-making body of the UNFCCC. It comprises representatives from all States that are Parties to the Convention, who convene to review its implementation and any legal instruments adopted by the COP. The primary objective is to make decisions that promote effective implementation of the Convention, including necessary institutional and administrative arrangements.
The UNFCCC was established to prevent dangerous human interference with the climate system. Since its inception, the COP has been instrumental in facilitating international negotiations aimed at addressing climate change through binding agreements, such as the 1997 Kyoto Protocol and the 2015 Paris Agreement.
A central task for the COP is to evaluate national communications and emission inventories submitted by Parties. This assessment helps gauge the effectiveness of measures taken by countries and their progress toward achieving the Convention’s ultimate goals.
The COP meets annually, although this can change based on decisions made by the Parties. The inaugural COP meeting took place in Berlin, Germany, in March 1995.
The presidency of the COP rotates among five recognised UN regions: Africa, Asia, Latin America and the Caribbean, Central and Eastern Europe, and Western Europe and Others.
Key Takeaways from the Conference
Climate finance The COP29 brought together about 200 countries from around the world, focused on climate finance and resulted in a landmark agreement called New Collective Quantified Goal on Climate Finance (NCQG), which would:
- increase funding to developing countries, raising the target from US$100 billion to US$ 300 billion annually by 2035; and
- mobilise efforts from both public and private sectors to scale up financial support to developing countries, with a goal of reaching US$ 1.3 trillion annually, by 2035.
The NCQG was established and finalised through a process that required unanimous agreement from all nations on every aspect. NCQG would serve as an ‘insurance policy for humanity’ in response to escalating climate impacts that has been affecting every country. Like any insurance, it only works if commitments are honoured fully and on time, stressing the importance of keeping promises to safeguard billions of lives.
Article 6 of the Paris Agreement and Carbon Markets After nearly a decade of work, countries reached an agreement on the final components that defined how carbon markets would function under the Paris Agreement, making both country-to-country trading and a carbon crediting mechanism fully operational.
- The COP29 made significant progress on country-to-country carbon trading as per the guidelines for provisions in Article 6.2. It provided clarity on how countries would authorise the trade of carbon credits and manage registries tracking these trades. The decision also ensured that environmental integrity would be maintained through upfront technical reviews in a transparent process.
- The countries agreed on standards of centralised carbon market mechanism under Article 6.4, also known as Paris Agreement Crediting Mechanism, which has been particularly beneficial for developing countries as it has opened up new financial flows. Least developed countries would also receive the necessary capacity-building support to participate in the market.
- Paris Agreement Crediting Mechanism includes mandatory checks for projects for ensuring strong environmental and human rights protections aligning with scientific principles. The supervisory body has been tasked with the setting up of the new carbon crediting mechanism.
The agreement would assist countries in implementing their climate plans more efficiently and cost-effectively, accelerating efforts to halve global emissions by the end of the decade, in line with scientific recommendations. Carbon market development aims to facilitate the establishment of a carbon market in India by FY 27, although concerns remain about potential issues with carbon credit quality.
Transparency Transparent climate reporting made significant progress in Baku. 13 Parties have submitted their first Biennial Transparency Reports (BTR), which are due from all Parties by the end of the year. Andorra, Azerbaijan, EU, and Germany, have taken the lead in transparent climate reporting, setting an example for others to follow.
- A total of 42 events were organised under the ‘Together4Transparency’ initiative, a UNFCCC collaborative effort highlighting the importance of transparency in the preparation of nationally determined contributions (NDCs) and net-zero pathways and in the recognition of climate action from non-Party stakeholders.
- The critical role of Reducing Emissions from Deforestation and Forest Degradation Plus was recognised with a three-million-pound pledge from the UK International Forest Unit to support UN Climate Change’s work over the next four years, which will contribute to the Global Stocktake goal of halting and reversing deforestation and forest degradation by 2030.
Over 30 nations have supported the COP29 Declaration aimed at reducing methane emissions from organic waste, which includes eight of the ten largest methane emitters from this source (excluding India).
Adaptation The COP29 has made a significant progress on adaptation, particularly for the least developed countries, by establishing a support programme for National Adaptation Plans and launching the Baku Adaptation Road Map.
Additionally, COP29 emphasised the importance of indigenous peoples and local communities in climate action, adopting the Baku Workplan and renewing the mandate of the Facilitative Working Group of the Local Communities and Indigenous Peoples Platform.
Gender and climate change Countries extended the enhanced Lima Work Programme on Gender and Climate Change for another 10 years, emphasising gender equality and integrating gender mainstreaming across the convention. They also agreed upon developing a new gender action plan for adoption at COP30, which would guide concrete implementation of these goals.
Civil society participation, children, and youth The COP29 saw over 55,000 attendees, including world leaders, civil society, businesses, indigenous peoples, youth, children and international organisations coming together for sharing ideas and building partnerships.
India’s Stand at COP29
At COP29, India emphasised several key demands:
- Opposition to climate finance goal India was the first country to oppose the newly proposed climate finance goal of US$ 300 billion annually by 2035 for developing nations, arguing that it falls significantly short of the US$ 1.3 trillion demanded by the Global South for effective climate action.
- Criticism of the agreement process Indian negotiator Chandni Raina described the adopted document as an “optical illusion,” emphasising that it would not adequately address the challenges faced by developing countries. She criticised the rushed approval process, which did not allow for sufficient discussion or intervention from participating nations.
- Recognition of trade barriers India and several developing nations raised concerns about trade barriers imposed by developed countries that hinder their transition to low-carbon economies. Discussions were initiated on climate-related trade barriers, particularly focusing on Europe’s planned carbon border tax.
- Equity and justice India reiterated the principle of Common but Differentiated Responsibilities and Respective Capabilities, demanding that developed nations take the lead in emission reductions.
- Coalition with other nations India’s stance was supported by other climate-vulnerable countries, including Bolivia and Nigeria, highlighting a collective frustration among developing nations regarding the inadequacy of financial commitments from developed countries.
India has been continuously advocating for fairness in climate policies, though challenges like inadequate financing mechanisms and the risks of ‘greenwashing’ in carbon credit markets have been persisting. At COP29, India emphasised holding developing economies. The conference underscored the crucial financial and collaborative efforts required to effectively address the climate crisis.
Future Directions
Next steps at COP30 The upcoming COP30 will be hosted in Belem, Brazil, where India and other nations will continue to advocate for more substantial and equitable climate finance commitments. Brazil’s leadership is expected to build on the discussions initiated at COP29.
Need for reform in climate finance Experts have emphasised the necessity for a reformed global climate finance framework that ensures accessible and adequate funding for developing nations. This includes moving away from loans disguised as climate finance and towards grant-based support.
Focus on technology transfer India stressed the importance of unrestricted access to green technologies, urging developed countries to eliminate barriers such as intellectual property rights that limit technology transfer essential for achieving climate goals.
Conclusion
The new goal of at least US$ 300 billion annually by 2035 would be three times the previous target, aiming to mobilise the essential finance for developing countries for the reduction of emissions and tackling the impacts of climate change. However, while this target would be an important initial step towards a safer and more equitable future, it would fall short of the full financial needs of developing countries which pursue low-carbon development and protection of their populations from worsening droughts, floods, and wildfires.
The finance agreement at COP29 coincides with the deadline for stronger national climate plans NDCs from all countries in 2025. These updated climate plans must address all greenhouse gases and sectors for maintaining the 1.5 °C warming limit. At COP29, two G20 nations, the UK and Brazil, clearly signalled their intention of enhancing climate action in their NDCs 3.0, recognising that these efforts are vital for the well-being of their economies and populations.
However, the agreements reached in Baku did not fully meet the expectations of all Parties, and that significant work still remains to be done on several critical issues. No country achieved all of their objectives and stated that there is a mountain of work yet to be done. While many of the remaining issues may not make headlines, still they are crucial for billions of people. Overall, there is a need of refocusing and intensifying efforts as the journey continues towards COP30 at Belem, Brazil.
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