03/01/2025
The UN Climate Change Conference (COP29), held from 11-22 November 2024 in Baku, Azerbaijan, with a new finance goal to help countries to protect their people and economies against climate disasters, and share in the vast benefits of the clean energy boom. With a central focus on climate finance, COP29 brought together nearly 200 countries in Baku, Azerbaijan and reached a breakthrough agreement that will: Triple finance to developing countries, from the previous goal of USD 100 billion annually, to USD 300 billion annually by 2035. Secure efforts of all actors to work together to scale up finance to developing countries, from public and private sources, to the amount of USD 1.3 trillion per year by 2035.
Known formally as the New Collective Quantified on Climate Finance (NCQG), it was agreed after two weeks of intensive negotiations and several years of preparatory work, in a process that requires all nations to unanimously agree on every word of the agreement. "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.” "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.” The International Energy Agency expects global clean energy investment is set to exceed USD 2 trillion for the first time in 2024.
The new finance goal at COP29 builds on significant strides forward on global climate action at COP27, which agreed an historic Loss and Damage Fund, and COP28, which delivered a global agreement to transition away from all fossil fuels in energy systems swiftly and fairly, triple renewable energy and boost climate resilience.
COP29 also reached agreement on carbon markets – which several previous COPs had not been able to achieve. These agreements will help countries deliver their climate plans more quickly and cheaply, and make faster progress in halving global emissions this decade, as required by science. Important agreements were also reached on transparent climate reporting and adaptation as summarized below. Stiell also acknowledged that the agreement reached in Baku did not meet all Parties' expectations, and substantially more work is still needed next year on several crucial issues.
The finance agreement at COP29 comes as stronger national climate plans (Nationally Determined Contributions, or NDCs) become due from all countries next year. These new climate plans must cover all greenhouse gases and all sectors, to keep the 1.5°C warming limit within reach. COP29 saw two G20 countries – the UK and Brazil – signal clearly that they plan to ramp up climate action in their NDCs 3.0, because they are entirely in the interests of their economies and peoples.
UN Secretary-General António Guterres speaking to the press on the final days of COP29
Speaking to the press on the final days of COP29, UN Secretary-General António Guterres urged negotiators to find a compromise and deliver an ambitious and balanced package on all pending issues, including a new ambitious climate finance goal. COP29 comes at the close of a brutal year – a year seared by record temperatures, and scarred by climate disaster, all as emissions continue to rise. Finance has been priority number one. Developing countries swamped by debt, pummelled by disasters, and left behind in the renewables revolution, are in desperate need of funds. An agreement at COP29 was absolutely essential to keep the 1.5 degree limit alive. And countries have delivered. Commitments must quickly become cash. All countries must come together to ensure the top-end of this new goal is met. COP29 also builds on progress made last year on emissions reductions and accelerating the energy transition. And it reaches agreement on carbon markets. This was a complex negotiation in an uncertain and divided geopolitical landscape. I commend everyone who worked hard to build consensus. You have shown that multilateralism – centred on the Paris Agreement – can find a path through the most difficult issues. I appeal to governments to see this agreement as a foundation – and build on it. First, countries must deliver new economy-wide national climate action plans – or NDCs – aligned with 1.5 degrees, well ahead of COP30 – as promised. The G20 countries, the biggest emitters, must lead. These new plans must cover all emissions and the whole economy, accelerate fossil fuel phase out, and contribute to the energy transition goals agreed at COP28 seizing the benefits of cheap, clean renewables. The end of the fossil fuel age is an economic inevitability. New national plans must accelerate the shift, and help to ensure it comes with justice. Second, we need swift action to deliver on commitments made in the Pact for the Future. Particularly on effective action on debt; increasing concessional finance and improving access; and substantially increasing the lending capacity of the Multilateral Development Banks, with adequate recapitalization.
A brief summary of other key achievements at COP29 follows below:
Article 6 of the Paris Agreement: breakthrough on Global Carbon Markets
A notable achievement during the past two weeks was the progress made on carbon markets. After nearly a decade of work, countries have agreed on the final building blocks that set out how carbon markets will operate under the Paris Agreement, making country-to-country trading and a carbon crediting mechanism fully operational. On country-to-country trading (Article 6.2), the decision out of COP29 provides clarity on how countries will authorize the trade of carbon credits and how registries tracking this will operate. And there is now reassurance that environmental integrity will be ensured up front through technical reviews in a transparent process. On day one of COP29, countries agreed standards for a centralized carbon market under the UN (Article 6.4 mechanism). This is good news for developing countries, who will benefit from new flows of finance. And it is particularly good news for least developed countries, who will get the capacity-building support they need to get a foothold in the market.
This mechanism, known as the Paris Agreement Crediting Mechanism, is underpinned by mandatory checks for projects against strong environmental and human rights protections, including safeguards that ensure a project can’t go ahead without explicit, informed agreement from Indigenous Peoples. It also allows anyone affected by a project to appeal a decision or file a complaint.
Under the text agreed on Article 6.4, there is a clear mandate for the UN carbon market to align with science. It tasks the Body getting this market up and running to consider the best available science across all work going forward. The work on carbon markets doesn’t stop in Baku. The Supervisory Body setting up the new carbon crediting mechanism has been handed a long 2025 to-do list by Parties and will continue to be accountable to them.
The COP29 Presidency identified the full operationalization of Article 6 as a key negotiating priority this year. Finalising Article 6 negotiations could reduce the cost of implementing national climate plans by $250 billion per year by enabling cooperation across borders. This decision is an essential step in achieving that goal and establishes strong momentum for continued progress over the coming two weeks of negotiations. The COP29 President opened the summit by setting clear expectations for how global leaders must enhance ambition and enable action during the conference. COP29 is a critical moment for global leaders to come together and demonstrate their collective commitment to climate action.
The finance agreement at COP29 comes as stronger national climate plans
To enhance ambition, the COP29 President called for countries to submit 1.5-aligned Nationally Determined Contributions to reduce emissions ahead of next year's deadline, submit National Adaptation Plans by 2025 to prepare for a warming world, and deliver their first Biennial Transparency Reports (BTR) this year.
Transparency
Transparent climate reporting made big strides forward in Baku, building a stronger evidence base to strengthen climate policies over time, and helping to identify financing needs and opportunities. To date, 13 Parties have now submitted their first Biennial Transparency Reports (BTR) – due from all Parties by the end of the year. In addition, all transparency negotiating items concluded successfully at COP29, with Parties expressing their appreciation for the timely completion of the Enhanced Transparency Framework (ETF) reporting tools, the technical trainings, and the support provided to developing countries for reporting under the ETF that took place in 2024.
A total of 42 events were organized under Together4Transparency, a UNFCCC collaborative initiative that promotes climate transparency with Parties and non-Party stakeholders. These events emphasized the vital role of transparency in preparing NDCs and net-zero pathways, as well as in recognizing climate action from non-Party stakeholders. Events included high-level sessions, mandated events and training sessions to prepare countries for their BTRs, as well as to equip technical experts for the upcoming review process.
The critical role of REDD+ was recognized through a £3 million pledge by the UK International Forest Unit to support UN Climate Change’s work over four years. This funding will bolster REDD+ activities in many countries, enabling the secretariat to create dedicated spaces for REDD+ experts to engage in technical dialogue. These efforts are expected to enhance the transparency and implementation of REDD+, in line with the Global Stocktake objective to halt and reverse deforestation and forest degradation by 2030.
Adaptation
COP29 was an important moment for adaptation, with the delivery of several key outcomes. The COP decision on matters relating to the least developed countries (LDCs) contains a provision for the establishment of a support programme for the implementation of National Adaptation Plans (NAPs) for the LDCs. Parties extensively discussed the second five-year assessment of progress to formulate and implement NAPs, and will continue that in June 2025.
A High-level Dialogue on National Adaptation Plans convened ministers from least developed countries and small island developing States, financial experts and international donors to address the growing urgency of climate adaptation. Their discussions focused on innovative financing, technical support, and accelerated action to meet the 2025 submission deadline for NAPs. The event concluded with a strong call to action to expedite NAPs and translate plans into tangible outcomes.
The outcome on the global goal on adaptation sets a clear path forward on the road to COP30 for the indicators work programme, providing a process for experts to continue their technical work before passing the baton to Parties. COP29 also launched the Baku Adaptation Road Map and Baku high-level dialogue on adaptation to enhance the implementation of the UAE Framework. Finally, the outcome raises ambition by agreeing to continue unpacking transformational adaptation moving forward.
COP29 took a decisive step forward to elevate the voices of Indigenous Peoples and local communities in climate action, adopting the Baku Workplan and renewing the mandate of the Facilitative Working Group (FWG) of the Local Communities and Indigenous Peoples Platform (LCIPP). The adopted decision acknowledges the progress made by the FWG in fostering collaboration among Parties, Indigenous Peoples and local communities, and underscores the leadership of Indigenous Peoples and local communities in addressing the climate crisis.
Gender and climate change
Countries agreed a decision on gender and climate change, extending the enhanced Lima Work Programme on Gender and Climate Change for another 10 years, reaffirming the importance of gender equality and advancing gender mainstreaming throughout the convention. They also agreed to develop a new gender action plan for adoption at COP30, which will set the direction for concrete implementation.
Civil society participation, children and youth
World leaders at COP29 were joined by civil society, subnationals, business, Indigenous Peoples, youth, philanthropy, and international organizations. More than 55,000 people attended COP29 to share ideas, solutions, and build partnerships and coalitions. The decisions taken at COP29 also reemphasize the critical importance of empowering all stakeholders to engage in climate action; in particular under Action for Climate Empowerment (ACE). Parties recalled the importance of integrating ACE elements into national climate change policies, plans, strategies and action, and noted the secretariat’s compendium of good practices for integrating ACE elements into NDCs.
COP29 marked a significant milestone as dedicated spaces were created to ensure the meaningful participation of children within the Youth-led Climate Forum for the first time. Four children, including the youngest at just 10 years old, took on roles as moderators and speakers, engaging directly with Parties and observer organizations. Their participation highlighted the importance of inclusivity and intergenerational collaboration in driving climate action. In parallel with the formal negotiations, the Global Climate Action space at COP29 provided a platform for governments, businesses and civil society to collaborate and showcase their real-world climate solutions. The High-Level Champions, under the Marrakech Partnership for Global Climate Action, launched their 2024 Yearbook of Global Climate Action at COP29, showing that climate action by non-Party stakeholders, including businesses, investors, sub-national actors and civil society, is driving progress towards the goals of the Paris Agreement, and that their engagement is more crucial than ever.
COP29 Declaration on green digital action
The COP29 Presidency today launched the global conference’s inaugural Digitalisation Day with more than 90 governments and over 1,000 members of the digital tech community, including companies, civil society organisations, and international and regional organisations endorsing the COP29 Declaration on Green Digital Action. As part of the COP29 Action Agenda in September 2024, the COP29 Presidency has focused on building support amongst multisector partners for the Declaration, which urges to using digital tools to reduce greenhouse gas (GHG) emissions, strengthen climate resilience, and advance sustainable development. The Declaration calls for sector-wide collaboration to accelerate climate-positive digitalisation, improve energy efficiency, and promote inclusive digital access – especially in developing countries.
The introduction of the Digitalisation Day to the thematic programming for the conference reflects the critical role of technology in addressing climate change. It also reflects the COP29 Presidency’s commitment to integrating digital solutions into global climate action, in collaboration with the International Telecommunication Union (ITU), the UNFCCC Technology Executive Committee (TEC), and other partners. It builds on efforts launched at COP28 by ITU and over 40 partners to underscore the challenges and opportunities in harnessing technology for climate action. Through this initiative, COP29 aims to place digitalisation at the heart of climate action, empowering nations and communities to adapt to and mitigate the effects of climate change.
Energy initiatives focus on green energy, hydrogen and global energy storage
While hosting a High-Level Roundtable on Green Energy, Hydrogen and Global Energy Storage and Grids, the COP29 Presidency officially launched three energy initiatives and called on Party and non-Party stakeholders for endorsement of each. These initiatives reflect the Presidency’s efforts to take forward the outcomes of the first Global Stocktake on renewable energy and hydrogen. The initiatives include: COP29 Global Energy Storage and Grids Pledge – endorsers commit to a collective goal of deploying 1,500 GW of energy storage globally by 2030 - more than six times the capacity of 2022. It also includes a commitment to add or refurbish 25 million kilometres of grids globally by 2030, recognising the need to add or refurbish an additional 65 million kilometres by 2040.
COP29 Green Energy Pledge: Green Energy Zones and Corridors - endorsers commit to promoting in green energy zones and corridors to connect sources of abundant green energy generation with the communities most in need by developing larger intraregional and interregional interconnected power grids. These grids will enable cost-effective and secure transmission of electricity over long distances.
COP29 Hydrogen Declaration – endorsers commit to scale up renewable, clean/zero-emission and low-carbon hydrogen production and accelerate the decarbonisation of existing hydrogen production from unabated fossil fuels. It aims to significantly increase green hydrogen production from one million tonnes annually today and reduce the 96 Mt of hydrogen currently produced from unabated fossil fuels.
Vietnam attends COP 29 Climate change conference
Vietnam's delegation at COP29 includes representatives from the Ministries of Natural Resources and Environment, Industry and Trade, Transport, Agriculture and Rural Development, Planning and Investment, Finance, Science and Technology, and Foreign Affairs. Also attending are members of Vietnam's climate negotiation task force and representatives from various agencies, localities, banks, and businesses implementing Viet Nam's COP26 commitments.
The first slogan calls for solidarity, urging countries to honor their commitments to greenhouse gas reductions and financial contributions to climate initiatives, working together for a common goal. The second slogan arises from the findings of the first global stocktake, showing that even if all current emission reduction commitments are met, global temperatures are still projected to rise by 2.4-2.7°C - far above the Paris Agreement targets of limiting warming to 2°C and striving for 1.5°C. Thus, nations must "raise ambition" to align with the Paris targets and "activate action" to turn commitments into reality.
At COP29, Viet Nam advocates for developed countries to ensure climate finance targets and maintain transparency in income sources and expenditures through annual reports. Viet Nam also calls for balanced spending on adaptation and mitigation efforts, as current discrepancies are significant.
With global temperatures hitting record highs, and extreme weather events affecting people around the globe, COP29 will bring together leaders from governments, business and civil society to advance concrete solutions to the defining issue of our time. A key focus of COP29 will be on finance, as trillions of dollars are required for countries to drastically reduce greenhouse gas emissions and protect lives and livelihoods from the worsening impacts of climate change. The conference will also be a key moment for countries to present their updated national climate action plans under the Paris agreement, which are due by early 2025. If done right, these plans would limit global warming to 1.5°C above pre-industrial levels and double as investment plans advancing the Sustainable Development Goals.
Nhâm Hiền
(Source: The article was published on the Environment Magazine by English No. IV/2024)
