Global leaders draft ambitious climate finance deal ahead of COP29

As the countdown to COP29 continues, the Azerbaijani presidency is pushing for a balanced outcome that not only delivers on finance but also reinforces commitments made under the Paris Agreement. (COP29)
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  • A draft negotiating text will be published “imminently,” following a series of high-level meetings in Baku last week
  • It outlines a plan that could mobilize trillions of dollars in support for developing nations

RIYADH: Global leaders are drafting an ambitious climate finance deal to be finalized at the 29th Conference of the Parties, or COP29, as Azerbaijan’s presidency leads efforts to resolve critical gaps ahead of the November summit.

A draft negotiating text will be published “imminently,” following a series of high-level meetings in Baku last week, according to the COP29 presidency team.

It outlines a plan that could mobilize trillions of dollars in support for developing nations.

Central to the talks was the New Collective Quantified Goal, or NCQG, on climate finance, which aims to replace the existing $100 billion pledge that has long been deemed insufficient.

Azerbaijan’s Lead Negotiator Yalchin Rafiyev acknowledged the magnitude of the challenge, stating in a release that the funding needed to address climate change was “in the space of trillions” of dollars.

However, negotiations are steering towards a more realistic expectation of public sector contributions, which are likely to reach “hundreds of billions” annually.

The NCQG is critical in ensuring developing nations, particularly small island developing states and the least developed countries, receive the support they need to build resilience and reduce emissions.

President Ilham Aliyev of Azerbaijan, addressing participants at the pre-COP conference, urged global leaders to move beyond blame and focus on collective action.

“As we are entering into the final stage of preparations for COP29, I call on you to engage constructively and in good faith for the sake of humanity,” Aliyev said.

“While states have common but differentiated responsibilities, they should put aside disagreements, stop blaming each other, and find common ground.

“We cannot afford to waste time on defining who is guilty for global warming, or who caused more environmental harm.”

These remarks reflect the urgency felt ahead of COP29, especially in light of the Paris Agreement’s goal to limit global temperature rise to 1.5 degrees Celsius.

COP events have served as critical platforms for advancing this agenda since 2015, but the most recent Global Stocktake at COP28 revealed that the world is not on track to meet its targets.

Azerbaijan’s COP29 President-Designate, Mukhtar Babayev, highlighted the importance of addressing unresolved issues before November.

“We have done well to narrow down options, and the possible shapes of landing zones are coming into view. But we can clearly see the divides that the parties still need to bridge,” Babayev said.

He said that ministers must return to their capitals to secure the political mandates needed to push the negotiations forward.

“There is no excuse for anyone to arrive at COP29 without clear political support to make progress, as we urgently work to turn this draft into a deal,” he said.

The talks in Baku also explored the qualitative aspects of the NCQG, such as transparency, accessibility and accountability.

These elements are seen as vital to building trust among nations and ensuring the effective use of funds.

The pre-COP conference marked a crucial step in preparing a draft negotiating text for the new finance goal, which is expected to be published in the coming days.

This draft will set the stage for final negotiations at COP29, where a comprehensive climate finance package is anticipated.

In addition to finance, the discussions addressed broader initiatives such as climate transparency and energy resilience.

A new report, co-authored with the International Renewable Energy Agency, or IRENA, and other partners, was launched during the conference.

It tracks progress on energy goals set at COP28, particularly in relation to energy storage, with the COP29 Global Energy Storage and Grids Pledge aiming to boost installed capacity to 1,500 GW by 2030 — six times the level recorded in 2022.

As the countdown to COP29 continues, the Azerbaijani presidency is pushing for a balanced outcome that not only delivers on finance but also reinforces the commitments made under the Paris Agreement.