COP29: A crucial step in global climate action

The COP29 climate change conference is a pivotal moment that will influence global climate efforts in the coming years. Three key issues are dominating the discussions.

First, a top priority is setting a new collective quantified goal on climate finance. This aims to define the amount of international funding that developing nations should receive from developed countries and other sources starting in 2025. With increasingly devastating climate impacts hitting countries worldwide there is pressure to agree on a more ambitious target. An agreement in Baku, Azerbaijan, is crucial to show a serious commitment to fair climate action. Without it, the credibility of the UN climate framework is at stake.

However, reaching consensus is challenging. Developed countries hesitate due to budget constraints and limited funds, while developing nations need substantial support to meet and enhance their climate goals. Public funding alone is not enough. The International Monetary Fund estimates that low-carbon investments must increase from $900 billion in 2020 to $5 trillion annually by 2030 to achieve net-zero emissions by 2050. A strong finance goal could encourage private investment in green projects.

A second major theme at COP29 is transparency. All Paris Agreement signatories are expected to report their 2022 greenhouse gas emissions by the end of the year. This data builds trust and helps track progress toward climate targets. Many developing countries face technical challenges in reporting, which could hinder meeting the deadline.

With increasingly devastating climate impacts hitting countries worldwide there is pressure to agree on a more ambitious target. An agreement in Baku, Azerbaijan, is crucial to show a serious commitment to fair climate action. Without it, the credibility of the UN climate framework is at stake.

Joachim Monkelbaan and Mari Luomi

Transparency is not just about emissions; it includes reporting on climate impacts, adaptation efforts, and financial flows. Developed countries must disclose the support they provide, while developing nations outline their needs. Open reporting allows for better assessment of what is working and where improvements are needed, ensuring more effective global climate action.

The future of carbon markets is the third critical issue. Article 6 of the Paris Agreement allows countries to trade emission reductions and removals internationally to meet national climate goals. Progress in setting up these markets has been slow. COP29 aims to finalize rules to operationalize them fully.

Well-regulated carbon markets could unlock funding for climate initiatives and help mitigate emissions. However, without strict oversight, there is a risk of “greenwashing,” where companies appear environmentally friendly without making real emission cuts. Decisions in Baku will impact the future and credibility of carbon trading.

Beyond these issues, COP 29 will address challenges like the transition from fossil fuels and the urgent need to reduce methane emissions, a potent greenhouse gas. Debates over the role of fossil fuels in achieving net-zero emissions are again expected to be intense, as signals coming from the COP are seen to have a major role in influencing global strategies to address related emissions.

Despite not being a milestone climate COP, the outcomes of COP29 are vital. Progress on finance, transparency, and carbon markets can help strengthen global efforts to meet climate goals. Organizations participating in COP29 have the opportunity to influence these discussions and shape policies that will determine our planet’s future.

As we look toward future conferences, Baku will hopefully prove to be an essential step to reinforce global climate action and work toward a sustainable future for all.

• Joachim Monkelbaan is a senior fellow of climate and sustainability at the King Abdullah Petroleum Studies and Research Center.

• Mari Luomi is a principal fellow of climate and sustainability at KAPSARC.